For temporary workers legislation of the home country applies during the intervening periods | Deloitte Netherlands

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For temporary workers legislation of the home country applies during the intervening periods

The Court of Justice of the EU decided that for temporary workers legislation of their country of residence applies during periods in which no work is carried out, when by reason of the temporary contract, the employment relationship ceases during those periods.

9 november 2022

Temporary contracts

Recently a judgement of the Court of Justice of the European Union was published regarding short-term employments. The case at hand was about two individuals living outside the Netherlands and working in the Netherlands based on employment contracts with employment agencies.
They both had consecutive employment contracts for a fixed term in the Netherlands and worked for a fixed period of time until their contract ended. After an interruption varying from a few days to a few months, they concluded a new temporary contract and worked in the Netherlands again.

According to the CJEU these individuals were only liable to Dutch social security during their employment contracts, while in the intervening periods the social security legislation of their country of residence applied. This is different from previous CJEU judgements where social security legislation of the country of work remained applicable during periods that the employees were not working. In those cases the employees lived in the Netherlands and had German employment contracts for a few hours per week. The CJEU ruled that the employees were liable to German social security only, also for the hours they were off-work. The main difference turns out to be that in those cases the underlying employment contracts remained in place.

The CJEU judgement confirms that for temporary workers the legislation of the Member State of residence applies during the periods no work is performed in the working state. This applies when the employment relationship ceases during those periods. As a result of cessation of occupational activity they were not pursuing activity as employed persons during the intervening periods between their temporary work assignments and were not in an equivalent situation, for the purposes of the Dutch legislation. Consequently, they were not subject to Dutch social security legislation. In cases where the employment contract remains in place, the individuals will remain subject to social security legislation of the working state.

Points of attention

As usual, when an employee works in several Member States employers should be watchful on additional jobs the employee may take out. In case those jobs are of a temporary nature, employers may experience irregular changes in the social security affiliation of the employee.


Source: Court of Justice of the European Union October 13, 2022, nr. C-713/20, ECLI:EU:C:2022:782

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