It is worth acknowledging that the Dutch government have an extensive social security system in place, offering a safety-net for times where things don’t go according to plan or should you become unemployed in the Netherlands. While generous, its basic principle however is getting people back to work as soon as possible if made redundant or unemployed in the Netherlands.
Persons are entitled to the allowances and benefits under the social security umbrella once they have paid deductions and premiums for the services offered. These benefits, and the right to receive benefits, when required depend on the way in which you are working in the EU and the length of time the employee or contractor has been working in the Netherlands before being made redundant or unemployed in the Netherlands.
The employer in the Netherlands will withhold premiums from the employee as required in the Dutch Social Security Legislation. Independent contractors, ZZP in Dutch, only have to ensure insurance cover for old age pension (AOW), exceptional medical expenses (AWBZ), family allowances and surviving dependent’s benefits (ANW). Independent contracts will need to source supplementary insurance to cover illness and occupational disability. It should be noted that independent contractors are not insured against unemployment.
Becoming Unemployed in the Netherlands
There are several options if you were to loose your job and become unemployed in the Netherlands. If you requested an E101 form when you started work within Dutch borders then the social insurance system in place in your home country will apply to you. Should you not hold an E101 then your circumstances will depend on how often you traveled back and forth between the Netherlands and your home country.
Should you be made redundant or become unemployed in the Netherlands while working there, but didn’t travel weekly or daily to the Netherlands from your home country then you could be eligible for unemployment benefit in the Netherlands from the UWV (Employee Benefit). To be eligible for this you will need to remain in the Netherlands and actively seek work there, however. It is also vital that you register as unemployed in the Netherlands and that you are seeking work with the UWV as soon as you are made redundant. The UWV will then assess your possibilities for getting quickly back into employment.
Benefit Amount for being Unemployed in the Netherlands
You could receive a Dutch benefit amount if you are still partially working for an employer within the Netherlands or not working due to adverse and extreme weather conditions or other unforeseen circumstances (fire, economic decline, etc.). The rule here is that you must remain in the Netherlands also.
The amount of benefit eligible to be received for being unemployed in the Netherlands and the length of time that they will be sent all depends on a wide array of factors; where did you work, how long have you worked and what did you earn?, for example. All work in your home country is also taken into account but this has to be stated on an E301 form.
Should you return to your home country when made unemployed in the Netherlands then you will need to apply for benefits there. For certain conditions and circumstances it will be possible to continue receiving the entitled Dutch benefits for a maximum time period of three months. You will need to request an E303 form for this to happen, obtainable from the UVW.
Finally, if you live in your home country or you are no longer working for a Dutch employer or you travel to and from the Netherlands for work on a weekly or daily basis then you must request benefit from your country of origin or your home country.
For more information on Working in Netherlands or Contracting in Europe visit the Euro Accountancy & Finance Services website.
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