Chain liability

You work with subcontractors. But do you have a grip on the entire supply chain?

Ken je jouw aansprakelijk-
heid?

A single violation somewhere in your supply chain is enough to make you, as the main contractor, jointly liable—even if you have contractually excluded this.

Book a demo

Thousands of euros

Duizenden euro’s

to fines per violation in your supply chain

Ultimately liable

for every link in your chain

7 years

record-keeping obligation for your supply chain records

Fines and supply chain liability are mounting, and enforcement is becoming stricter.

Source: Dutch Labour Inspectorate, Tax and Customs Administration.

What is it?

The four most important laws

Anyone working with subcontractors and flexible workers faces strict regulations. These are the four key laws that impact your liability and risk.

IW & DBA

Chain and hirer liability

You are liable for unpaid payroll taxes owed by subcontractors. This also applies to additional tax assessments resulting from their use of bogus self-employed workers (Wet DBA). In the case of hiring, this liability also extends to VAT.

WAV & WAGWEU

Cross-border employment

Manages the deployment of foreign personnel. You face heavy fines immediately if work is performed without a work permit (for non-EEA nationals) or if the EU notification obligation (WagwEU) is not correctly met.

WAS

Act on Tackling Sham Arrangements

It grants underpaid workers in your supply chain the right to hold you directly accountable. You share liability for the correct payment of the wages stipulated in the collective labour agreement.

WTTA

The New Admission Requirement

Requires all providers of temporary staff and secondees to hold official government authorization starting January 1, 2027. As a hiring company, you risk hefty fines (up to 90,000 euros) if an unauthorized party is involved in your hiring chain.

Who is liable?

The inspectorate examines every layer of the chain.

In the event of a violation, the inspection does not stop at the direct employer; any level above that can be held liable.

Practical example

A contract with your subcontractor does not automatically limit your risk.

Two companies from the Westland region collaborated with a Polish employment agency. The result: combined fines totaling €432,000 and 32 employees working without valid permits.

Source: Netherlands Labour Authority, October 2025

What do you need to be able to demonstrate?