11 October, 2016
Treaty on protection of social security rights signed in The Hague
On 12 September 2016, after nearly two years of negotiations, the People's Republic of China and the Netherlands signed a bilateral agreement relating to social security matters.
The main focus of the agreement is to protect the social security rights and interests of workers, enterprises and employees, reduce labour costs through prevention of double pay and to promote bilateral economic and trade relations. As a result of this treaty Dutch companies who send employees to China as well as the Dutch employees themselves will be exempt from pension insurance, unemployment insurance and other mandatory social security contributions in China. Employees of Chinese companies sent to work in the Netherlands will enjoy the same treatment.
The agreement will come into effect after it has been ratified by the legislature of each of the two countries. This agreement adds to a growing number of bilateral social security agreements the Chinese government has entered into, with similar arrangements already in place with Germany, South Korea, Denmark, Finland, Canada and Switzerland.
For further information, please contact:
Kristy Peacock-Smith, Partner, Bird & Bird
kristy.peacock-smith@twobirds.com
