A rogue haulage contractor, formally registered in Bulgaria but primarily operating in the Dutch province of Gelderland, has been heavily fined by the Nederlandse Arbeidinspectie (Dutch Labour Inspectorate).
The Inspectorate has been investigating the haulier in cooperation with the Inspectorate of Human Environment and Transport (ILT) since 2023. They have proven that the haulier is circumventing Dutch regulations, including the Employment of Foreigners Act and the Minimum Wage and Minimum Holiday Allowance Act.
Fake office in Bulgaria
Inspections were carried out at the company’s premises in both the Netherlands and Bulgaria. Bulgarian inspectors were present during the inspection in the Netherlands, according to the Nederlandse Arbeidinspectie’s official release.
In Bulgaria, the inspectors found no transport company, only an administrative office. All the company’s resources were located in the Netherlands, and drivers living in the country were questioned about their employment conditions.
The investigation revealed that although the company was registered in Bulgaria, it was actually based in the Netherlands. Virtually all business was conducted in or from that country. The Labour Inspectorate therefore concluded that Dutch labour law applied to this company.
Severe penalties for customers
This modus operandi allowed the haulier to circumvent Dutch law and avoid paying social security contributions.
“Both the Bulgarian and the Dutch company, as well as some Dutch customers, can expect financial penalties for violations of the Employment of Foreigners Act and the Minimum Wage and Minimum Holiday Allowance Act in a total maximum amount of €540,000. The owner, as de facto manager and therefore as an individual, can also expect a maximum penalty of €60,000 for this legal fiction,” reports the Dutch Labour Inspectorate.