Netherlands plans 22% rise in fines for employment law breaches

The Dutch government plans to raise fines for breaches of five employment laws by about 22%, with the new rates taking effect on 1 July 2027. It says the increase is intended to improve compliance and protect vulnerable workers.

The changes cover laws on minimum wages and holiday pay, the employment of foreign workers, employment conditions for posted workers, working conditions and working hours. The Netherlands Labour Authority will impose the fines. Repeat offenders will face higher penalties, though the announcement does not specify the new repeat-offender rates.

The government gives two examples: the maximum fine for failing to pay the statutory minimum wage is due to rise from €10,000 to about €12,200 per employee. A fine for failing to provide the Labour Authority with correct pay information would increase from €12,000 to about €14,640 per employee.

Fines will also be adjusted annually from 1 January 2028. The government says they have not been indexed in recent years and no longer reflect the seriousness of the offences.

The increase forms part of a wider government plan on labour migration, which Social Affairs and Employment Minister Hans Vijlbrief is sending to the House of Representatives. The plan also aims to reduce demand for low-paid labour, make better use of the available workforce and direct migration towards workers the Netherlands needs for future prosperity. The announcement sets out the government’s intended effects; it does not report whether the higher fines have changed employers’ behaviour.