The United Kingdom (UK) left the European Union (EU) on January 31, 2020. The so-called Withdrawal Agreement of October 17, 2019 contains transition rules for situations existing prior to January 1, 2021. As of January 1, 2021, there is no longer free movement of persons, services and goods, but the transition rules set out in the Withdrawal Agreement continue to apply. The UK and the EU reached an agreement on their new partnership on December 24, 2020. The agreement includes arrangements and regulations applying as of January 1, 2021. However, it only contains a few arrangements on living and working after January 1, 2021. This has a considerable impact on the free movement of employees. This newsletter discusses the consequences for British employees living in the Netherlands.

Britons who fall within the scope of the Withdrawal Agreement

British employees who lived in the Netherlands prior to 2021 and were registered in the Personal Records Database (Basisregistratie Personen, BRP) will be allowed to continue to live and work in the Netherlands after January 1, 2021. They do not need a separate work permit. They must, however, be in the possession of a residence permit or apply for a new one. The deadline for applying for a new permit is July 1, 2021. Employees may apply for a permanent or a temporary residence permit, depending on how long they have lived in the Netherlands.

British cross-border workers, i.e. British citizens working in the Netherlands as self-employed or employed persons but who live the UK or a EU member state and started working in the Netherlands before 2021, may continue to do so after January 1, 2021. They may apply for a cross-border worker document subject to certain conditions.

The rights of seconded workers are not covered by the Withdrawal Agreement (hereinafter the “Agreement”). The free movement of services between the EU and the UK ceased to apply at the end of the transition period (December 31, 2020). That is why, for example, companies in the UK may no longer provide services in the Netherlands under the European rules and some secondments are only allowed with a Dutch residence or work permit.

New situations after January, 1 2021

The transition rules contained in the Agreement do not apply to new situations from January 1, 2021. British employees who arrived in the Netherlands after December 31, 2020 are regarded as third-country nationals and are subject to the current Dutch immigration rules. In most cases, employers therefore have to apply for a residence and/or work permit for employees from the UK who start a job or are transferred to the Netherlands on or after January 1, 2021.

For a short stay, i.e. one not exceeding 90 days within a 180-day-period, Britons do not need an entry visa but are required to have a work permit in many cases.
National legislation allows for exceptions to the work permit requirement, for instance for occasional activities such as holding business meetings and installing software. The rules have also been relaxed for knowledge migrants, intra-group transfers and activities in the context of international trade.

Apart from these national rules and exceptions, the Agreement also contains provisions on work permit exemptions and a more relaxed assessment for work permit applications. It lists which activities are permitted without the need for a work permit for short-term business visitors intending to establish a business and employees who are being transferred within their company. Examples of such activities are attending meetings and trade fairs, conducting marketing research and performing after-sales services. A relaxed assessment for work permit applications applies for instance to temporary transfers within a group and contractual service providers as well as practitioners of an independent profession in certain authorised sectors. An application for a work and/or residence permit is compulsory in such cases, but they are not subject to quotas or labour market impact assessments.

British cross-border workers who started working in the Netherlands on or after January 1, 2021 are not covered by the Agreement. This means that they are required to apply for a work permit, depending on their position and the duration and nature of the work in question.

We are happy to help you ascertain the exact requirements that you need to meet and guide you through the application process for residence and/or work permits, thus ensuring international mobility for your staff.

Our webinar, to be held on March 18, 2021, will provide information on the current Brexit situation and the consequences for living and/or working in the Netherlands and the UK. Click on this link for more information and to register.