Thanks to close cooperation with Bulgarian colleagues, the Dutch Labour Inspectorate found fraud at a transport company in Gelderland. The transport company was active in Bulgaria on paper, but operated entirely from Gelderland, thus evading Dutch laws and regulations. The owner of the transport company could face a fine of up to €600,000.
The transport company was under investigation as far back as 2023, with the Labour Inspectorate working closely with the Environment and Transport Inspectorate (ILT) and Bulgarian inspection services. In both the Netherlands and Bulgaria, inspections were carried out at branches of the company within one week. In Bulgaria, inspectors found only an administrative office, but no transport company. All company assets were at the Gelderland branch.
For the Labour Inspectorate, this was reason enough for further investigation into (illegal) employment, wages and working hours of the truck drivers involved. To this end, the drivers residing in the Netherlands were questioned with the help of Bulgarian inspectors. The investigation showed that although the transport company was registered in Bulgaria, almost all business activities were conducted from the Netherlands and therefore Dutch labour law applied.
Social security contributions
With this construction, the transport company evaded Dutch regulations such as the Foreign Nationals (Employment) Act (WAV) and the Minimum Wage and Minimum Holiday Allowance Act (WML). The company also did not pay the required social contributions, which must now still be paid.
In addition, both the Bulgarian and Dutch company, along with some Dutch principals, can expect fines of up to 540,000 euros. The owner, as de facto manager, can also expect a fine of up to 60,000 euros.
