New European Business Structure Could Strip Dutch Workers of Basic Rights
Netherlands, 17 May 2026
Dutch companies may soon circumvent minimum wage laws and maternity leave requirements through a new EU business structure called EU-Inc. Originally designed to help startups operate across Europe, this system has sparked alarm among trade union leaders who warn it could fundamentally undermine worker protections in the Netherlands. European Trade Union Confederation leader Esther Lynch describes the development as ‘a disaster we are creating ourselves’, highlighting concerns that businesses could exploit this loophole to avoid essential employment obligations. The timing is particularly significant as it could affect all workers, including those seeking permits and asylum seekers entering the job market from 2026 onwards.
How EU-Inc Conversion Would Work
The EU-Inc structure will allow existing Dutch limited liability companies (BVs) to convert to this new European legal form in the coming period [1]. Brussels policymakers have positioned this new corporate structure as a potential game-changer for startup companies seeking to operate seamlessly across European borders [1]. The conversion process represents a fundamental shift in how businesses can structure their operations, potentially affecting employment law compliance across member states.
Union Concerns About Worker Protections
The European Trade Union Confederation (ETUC) has raised significant concerns about the potential for EU-Inc to undermine established worker rights [1]. Union leader Esther Lynch has characterised the development as having ‘all the hallmarks of a disaster we are creating ourselves’ [1]. The ETUC specifically fears that this new structure could facilitate the erosion of fundamental employment protections that workers have secured over decades of collective bargaining and legislative progress.
Implications for Vulnerable Workers
The introduction of EU-Inc carries particular significance for workers in precarious employment situations, including asylum seekers and those seeking work permits who may enter the Dutch labour market from 2026 onwards [GPT]. These workers often lack the collective bargaining power of established employees and may be more vulnerable to exploitative practices. If companies can circumvent minimum wage requirements and maternity leave provisions through EU-Inc structures, it could create a two-tier employment system where the most vulnerable workers face reduced protections. The timing of this regulatory change coincides with ongoing discussions about labour market integration for refugees and migrants across Europe, potentially complicating efforts to ensure fair employment conditions for all workers regardless of their immigration status.
Broader Economic and Political Context
The EU-Inc initiative reflects broader tensions within European economic policy between promoting business competitiveness and maintaining social protections [GPT]. While Brussels policymakers view enhanced corporate mobility as essential for European startups to compete globally, trade unions argue that this approach risks creating a race to the bottom in employment standards. The Netherlands, with its tradition of strong worker protections and the ‘polder model’ of consensus-based labour relations, could see significant changes to its employment landscape if companies begin converting to EU-Inc structures en masse. This development represents a critical test of whether European integration can advance business interests without compromising the social protections that define the European social model.