Insurance and Deregistration Requirements for Sending Employees Abroad
Insurance and Deregistration Requirements for Sending Employees Abroad
Essential Considerations for Employers
Insurance for Employees Abroad
When an employer decides to temporarily send employees abroad for work, there are several important considerations regarding insurance. It is crucial that the employer ensures that the employees are well covered during their stay abroad.
Health Insurance
One of the most important insurances is health insurance. In the Netherlands, employees are required to take out a basic health insurance. However, during temporary stays abroad, this insurance often does not cover all medical expenses. The coverage is then based on a maximum of 100 or 200% of the Dutch rate, depending on the insurer.
Good healthcare abroad is often more expensive than healthcare in the Netherlands. It is important for employers to investigate whether the Dutch health insurance provides sufficient coverage in the destination country. If not, an additional (international) health insurance must be taken out to cover medical expenses abroad. Depending on the duration of the assignment, a collective business travel insurance may suffice, as unplanned healthcare is also covered under the business travel insurance.
Note! If an assignment lasts longer than 8 months, the employee must deregister from their municipality. Consequently, they will no longer be entitled to Dutch health insurance, and an expat insurance, at least health insurance, will be necessary.
See also Temporary or Permanent Assignment.
Liability Insurance
Another important insurance is liability insurance. This insurance covers damage that employees may cause to third parties during their work abroad. It is essential that the liability insurance provides international coverage and that the policy conditions match the specific activities the employees will perform abroad.
Accident- and Travel Insurance
An accident insurance policy provides coverage for accidents that employees may encounter during their stay abroad. Additionally, a travel insurance policy is recommended, which not only covers medical expenses but also matters such as loss of luggage, repatriation, and flight cancellations.
With a Collective Business Travel Insurance, medical expenses for unplanned care can be covered.
Requirements for Deregistration for Employees
In addition to insurances, employers must also consider the deregistration requirements for employees who temporarily go abroad.
Temporary or Permanent Assignment
Whether an employee needs to deregister from the Dutch municipality depends on the duration of their stay abroad. For a temporary stay of less than eight months, an employee generally does not need to deregister. However, for a stay of longer than eight months, employees must deregister from their current municipality.
Consequences of Deregistration
Deregistration has several consequences for the employee. Firstly, the Dutch health insurance might no longer be valid, and the employee will need to take out health insurance in the destination country or through an expat insurer like De Goudse.
With a local insurer in the destination country, it is not known if the coverage meets the standards we are used to in the Netherlands. Often, a high deductible, a co-payment, and a maximum coverage can apply. Additionally, there can be a language barrier.
Finally, deregistration can affect the entitlement to certain social insurances and benefits, such as housing allowance and child benefit.
Registration Abroad
Employees who deregister in the Netherlands may need to register in the destination country. This depends on local laws and regulations. It is important that employees inform themselves in a timely manner about the registration requirements and associated obligations abroad.
Visas for Working Abroad
In addition to deregistration requirements, employers and employees must also consider visa requirements when employees go to work abroad. The need for a work visa depends on the destination country and the duration of the stay. In many cases, a special work visa is required to work legally abroad.
For some countries, employees can apply for a work permit before entering the country, while other countries may allow the application to be submitted after arrival. It is important to know that obtaining a work visa can sometimes be a lengthy process that involves multiple steps and documents, such as an employment contract, proof of qualifications, and sometimes a health declaration.
Not having the correct visa can have serious consequences, such as fines, deportation, or a ban on re-entering the country. Therefore, it is crucial that employees inform themselves in a timely manner about the visa requirements of their destination and take the necessary steps to obtain the correct visa. Employers can support this by providing information and possibly seeking legal assistance to ensure a smooth process.
By understanding and arranging both the visa requirements and deregistration requirements properly, employees can perform their duties abroad without worries. For more information, you can contact the Global Mobility Company.
Conclusion
Sending employees abroad brings various obligations and considerations for employers. It is of utmost importance to secure the right insurance policies that provide coverage during the stay abroad. Additionally, employers and employees need to be aware of the deregistration requirements and their potential consequences, and visas will need to be applied for. In short, a lot of preparation is involved. By properly arranging these matters, employees can embark on their foreign assignments with peace of mind.
More information
Feel free to contact me for a non-binding conversation.
mvitale@goudse.com
.
Essential Considerations for Employers
Insurance for Employees Abroad
When an employer decides to temporarily send employees abroad for work, there are several important considerations regarding insurance. It is crucial that the employer ensures that the employees are well covered during their stay abroad.
Health Insurance
One of the most important insurances is health insurance. In the Netherlands, employees are required to take out a basic health insurance. However, during temporary stays abroad, this insurance often does not cover all medical expenses. The coverage is then based on a maximum of 100 or 200% of the Dutch rate, depending on the insurer.
Good healthcare abroad is often more expensive than healthcare in the Netherlands. It is important for employers to investigate whether the Dutch health insurance provides sufficient coverage in the destination country. If not, an additional (international) health insurance must be taken out to cover medical expenses abroad. Depending on the duration of the assignment, a collective business travel insurance may suffice, as unplanned healthcare is also covered under the business travel insurance.
Note! If an assignment lasts longer than 8 months, the employee must deregister from their municipality. Consequently, they will no longer be entitled to Dutch health insurance, and an expat insurance, at least health insurance, will be necessary.
See also Temporary or Permanent Assignment.
Liability Insurance
Another important insurance is liability insurance. This insurance covers damage that employees may cause to third parties during their work abroad. It is essential that the liability insurance provides international coverage and that the policy conditions match the specific activities the employees will perform abroad.
Accident- and Travel Insurance
An accident insurance policy provides coverage for accidents that employees may encounter during their stay abroad. Additionally, a travel insurance policy is recommended, which not only covers medical expenses but also matters such as loss of luggage, repatriation, and flight cancellations.
With a Collective Business Travel Insurance, medical expenses for unplanned care can be covered.
Requirements for Deregistration for Employees
In addition to insurances, employers must also consider the deregistration requirements for employees who temporarily go abroad.
Temporary or Permanent Assignment
Whether an employee needs to deregister from the Dutch municipality depends on the duration of their stay abroad. For a temporary stay of less than eight months, an employee generally does not need to deregister. However, for a stay of longer than eight months, employees must deregister from their current municipality.
Consequences of Deregistration
Deregistration has several consequences for the employee. Firstly, the Dutch health insurance might no longer be valid, and the employee will need to take out health insurance in the destination country or through an expat insurer like De Goudse.
With a local insurer in the destination country, it is not known if the coverage meets the standards we are used to in the Netherlands. Often, a high deductible, a co-payment, and a maximum coverage can apply. Additionally, there can be a language barrier.
Finally, deregistration can affect the entitlement to certain social insurances and benefits, such as housing allowance and child benefit.
Registration Abroad
Employees who deregister in the Netherlands may need to register in the destination country. This depends on local laws and regulations. It is important that employees inform themselves in a timely manner about the registration requirements and associated obligations abroad.
Visas for Working Abroad
In addition to deregistration requirements, employers and employees must also consider visa requirements when employees go to work abroad. The need for a work visa depends on the destination country and the duration of the stay. In many cases, a special work visa is required to work legally abroad.
For some countries, employees can apply for a work permit before entering the country, while other countries may allow the application to be submitted after arrival. It is important to know that obtaining a work visa can sometimes be a lengthy process that involves multiple steps and documents, such as an employment contract, proof of qualifications, and sometimes a health declaration.
Not having the correct visa can have serious consequences, such as fines, deportation, or a ban on re-entering the country. Therefore, it is crucial that employees inform themselves in a timely manner about the visa requirements of their destination and take the necessary steps to obtain the correct visa. Employers can support this by providing information and possibly seeking legal assistance to ensure a smooth process.
By understanding and arranging both the visa requirements and deregistration requirements properly, employees can perform their duties abroad without worries. For more information, you can contact the Global Mobility Company.
Conclusion
Sending employees abroad brings various obligations and considerations for employers. It is of utmost importance to secure the right insurance policies that provide coverage during the stay abroad. Additionally, employers and employees need to be aware of the deregistration requirements and their potential consequences, and visas will need to be applied for. In short, a lot of preparation is involved. By properly arranging these matters, employees can embark on their foreign assignments with peace of mind.
More information
Feel free to contact me for a non-binding conversation.
mvitale@goudse.com
.