Fines for labor law violations to rise by 22%

Underpayment, excessive working hours, or unsafe working conditions: violations will cost employers more. The Dutch government is raising fines under five labor laws by around 22 percent. The aim is to encourage employers to comply with the rules. The higher amounts are also intended to deter repeat offenses. The measure seeks to tackle workplace abuses and better protect vulnerable workers.

Higher fines from July 2027

The increase takes effect on July 1, 2027. The Netherlands Labour Authority imposes fines for these violations. From January 1, 2028, the amounts will also be adjusted annually for inflation.

The measure applies to the Working Conditions Act, the Working Hours Act, and the Foreign Nationals Employment Act. Fines under the Minimum Wage and Minimum Holiday Allowance Act will also increase. The increase also applies to the Terms of Employment Posted Workers in the European Union Act.

Fine amounts have not been adjusted for inflation in recent years. According to the government, they are therefore no longer proportionate to the seriousness of the violations.

Amounts per employee

The maximum fine for violating minimum wage rules is currently €10,000 per employee. After the increase, this will rise to approximately €12,200.

Failing to provide the Labour Authority with the correct wage information will also cost more. The fine for this is currently €12,000 per employee. This will rise to approximately €14,640 following the increase. Repeat offenders will also face higher fines.

Part of a broader approach to labor migration

The increase in fines is part of a broader approach to labor migration. Minister Vijlbrief of Social Affairs and Employment is submitting this approach to the House of Representatives. It consists of three pillars, including tackling workplace abuses.

The government also wants to reduce demand for low-paid labor. As part of this, it aims to make better use of the available workforce. It is also seeking to align labor migration with the Netherlands’ future prosperity needs.

Rijksoverheid.nl