Dutch immigration law will undergo numerous changes in 2005 which will make it easier for foreign employees to take up work in the Netherlands.

On this page:

• Residence permits for knowledge migrants
• Temporary residence permits (MVV)
• Residence permits
• Sanctions
• MVV visa (temporary residence permit) and verification requirement
• Free movement of services within the new EU member states
• MVV visa and integration (inburgering) test abroad
• Conclusion

On 1 October 2004, the Dutch government adopted a new regulation to attract highly skilled foreign employees – the ‘knowledge migrants’ – to the Netherlands. This new policy has now finally been implemented.

Thanks to this policy, the employer doesn't have to apply for a work permit on behalf of the knowledge migrant anymore as the knowledge migrant only needs a residence permit, which can be granted in two weeks.

REQUIREMENTS:

Two conditions have to be fulfilled in order to fall within the scope of the knowledge migrant policy:

1. Foreign nationals can apply for a temporary residence permit

   The knowledge migrant should earn a gross salary of at least EUR 45,000 per year (a gross salary of at least EUR 33,000 per year is sufficient for knowledge migrants under 30 years).
    
   The salary requirement is however not applicable to PHD students – regardless of their age - and for postgraduates and university professors aged under 30 years.
    
   The annual gross salary consists of the monthly gross salary and other fixed allowances such as holiday allowance and a 13th month. However benefits in kind such as housing and a company car can't be taken into account for the salary requirement.
    
   The rush in which the knowledge migrant policy was adopted resulted in confusion about the definition of the salary requirement. The wording of the resolution was speaking of a salary subject to wage tax instead of a yearly gross salary.
    
   Due to tax deductions these are definitely not the same. Ernst &Young pointed out this problem to the Ministry of Social Affairs. After lengthy correspondence, the Ministry of Social Affairs admitted a mistake in the wording of the resolution and announced that the wording would be changed. The new resolution will be published soon and will define the salary requirement as a yearly gross salary of EUR 45,000.
    
2. The company should also register with at the IND on a once-only basis. In that respect the company has to sign a declaration, in which the employer commits himself to pay the fees for the application, to inform the IND within two weeks of any relevant changes in his relation with his employee and to indeed pay a yearly gross salary of at least EUR 45,000.

PROCEDURE:

From the moment the company has been registered at the IND (which takes about a week), the company can make use of the knowledge migrant policy and apply for (temporary) residence permits for knowledge migrants.

In principle, every foreign national wishing to stay in the Netherlands for longer than three months must apply for a temporary residence permit (known in Dutch as 'MVV').

The company can obtain advice about the temporary residence permit through the knowledge migrant procedure. This decision will take approximately two weeks.

After receipt of a positive decision, the employee must collect the temporary residence permit at the Dutch Embassy or Consulate in the country where the person officially resides prior to coming to the Netherlands.

Nationals of the following countries do not need a temporary residence permit: EU member states, Switzerland, Iceland, Norway and Liechtenstein, Australia, Canada, Japan, Monaco, New Zealand, United States of America and Vatican State.

After arrival in the Netherlands, the knowledge migrant has to apply for a residence permit.

Please be informed that there are two possibilities for applying for the residence permit for knowledge migrant:

1. The company applies for the residence permit for the knowledge migrant by post or

2. The knowledge migrant applies for the residence permit at the IND in Rijswijk. The company however has still to complete the application form.

The IND has the intent to grant the residence permit within two weeks. As soon as the company/employee has received the decision of the IND granting the residence permit, the employee is allowed to work.

The employee will then be invited by his local municipality to collect his or her residence permit card. Employees who have obtained an MVV before arrival in the Netherlands are allowed to work in the Netherlands as of the moment they have an official sticker from the IND in their passport.

Special governmental fees will be established as of 1 July 2005 for the application procedure for knowledge migrant and his family. The fees for the accompanying partner and children will vary depending on whether the family travels with the knowledge migrant or comes later.

The actual fee for the application of a residence permit for knowledge migrants is EUR 430 for adults and children above 12 and EUR 285 for children under 12.
 

Although bringing foreign employees to the Netherlands has become easier for the employer, the sanctions for the employer for illegal employment have been reinforced.

As of 1 January 2005 new administrative fines have been introduced in the Dutch Employment Act.

Compared to last year, the fines are now much higher and can be imposed directly by the labour inspector. This implies that an employer can be subject to fines ranging from EUR 11,250 (for individuals) to EUR 45,000 (for companies) and – in case of repeated offences - up to one year in jail for each offence if a work permit has not been applied for.

Regarding the Dutch immigration rules it is worthy to mention that the verification procedure applicable to nationals of the Dominican Republic, Ghana, India, Pakistan and Nigeria has been abolished. This will shorten and simplify considerably the MVV procedure applicable to the above mentioned nationals. This new measure will be published officially in March.

As of April 2005, the Ministry of Social Affairs will send a proposal for a new policy regarding the free movement of services with the new EU member States. According to this proposal, it will be possible for all employers within the EU to provide services to a Dutch company and to bring their own employees without a work permit requirement. However this proposal still has to be sent to the Parliament and won't enter into force before the autumn 2005.

A proposal regarding the integration law for foreigners abroad has been presented to the parliament which is supposed to enter into force next year.

According to this proposal, nationals not exempted from the MVV requirement and willing to come to the Netherlands on a permanent basis should take an integration test abroad as one the requirements to obtain an MVV. Knowledge migrants, their families, au pairs and students will be exempted of this requirement. 

On one hand the new changes on immigration law do facilitate the access of foreign employees to the Dutch labour market. On the other hand, the new proposal regarding a necessary integration test to obtain an MVV could harden the already strict Dutch immigration rules. The question is whether this last proposal will become reality. Time will show. We will keep you updated through future articles on Expatica HR.

Anne Kwint-Bijleveld and Mireya Serra-Janer are immigration specialists at Ernst & Young Human Capital in Amsterdam.

Subject: Permits and paperwork