Ketenaansprakelijkheid

Chain liability

Chain liability means that the main contractor or client may be held liable for unpaid wages and social security contributions of employees of subcontractors in the chain.

Chain liability is a mechanism under Dutch employment law whereby, in a contracting chain, the principal contractor or client may, under certain conditions, be held liable for the discharge of subcontractors’ wage and social security contribution obligations. This mechanism prevents clients from evading their responsibilities by outsourcing work to parties that fail to observe applicable employment conditions.

The mechanism is particularly relevant in sectors such as construction, cleaning and transport, where subcontracting chains are common. In practice, an employee may first claim against their immediate employer and, if payment is not forthcoming, proceed against the principal contractor. This encourages careful contracting and strengthens protection against underpayment.

“The principal contractor faced chain liability when it emerged that the subcontractor had failed to pay its employees’ wages.”

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