The Social Security (Netherlands) Order 2007

Made: 6th March 2007

Coming into force: 1st June 2007

At the Court at Buckingham Palace, the 6th day of March 2007

Present,

The Queen's Most Excellent Majesty in Council

This Order is made under the powers in section 179(1)(a) and (2) of the Social Security Administration Act 1992 , which provide that, for the purpose of giving effect to agreements made with the governments of countries outside the United Kingdom providing for reciprocity in specified matters, Her Majesty may by Order in Council make provision for modifying or adapting specified legislation in its application to cases affected by such agreements.

At The Hague, on 21st December 2005, a Convention on Social Security between the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands was signed on behalf of the respective Governments. This Convention, which is referred to in this Order as “the Convention”, provides for an earlier Convention between the Parties concerning reciprocity in social security and the extension and modification of that Convention to be consolidated into a single document, with further extensions and modifications in the scope of that reciprocity and taking account of changes in legislation.

Article 34 (1) of the Convention provides that the Parties to the Convention shall notify each other in writing of the completion of their respective constitutional or legal procedures required for the entry into force of the Convention, and that the Convention shall enter into force on the first day of the third month following the month after the date of the last notification.

The last such notification was given by the United Kingdom on 20th February 2007 and the Convention therefore enters into force on 1st June 2007.

In order to give effect to the Convention, therefore, Her Majesty, in exercise of the power conferred on Her by section 179(1)(a) and (2) of the Social Security Administration Act 1992 and of all other powers enabling Her to do so is pleased, by and with the advice of Her Privy Council, to order as follows:

Citation and commencement

1

This Order may be cited as the Social Security (Netherlands) Order 2007 and comes into force on 1st June 2007.

Modification of Acts

2

The Social Security Administration Act 1992, the Social Security Contributions and Benefits Act 1992 and the Jobseekers Act 1995 are modified to such extent as may be required to give effect to the provisions contained in the Convention set out in the Schedule so far as they relate to England, Wales and Scotland.

Revocation and Variation of Orders

3

• (1) The National Insurance and Industrial Injuries (Netherlands) Order 1955 is revoked.

• (2) The reference to the National Insurance and Industrial Injuries (Netherlands) Order 1955 shall be omitted in:

• (a) Schedule 1 to the Social Security (Reciprocal Agreements) Order 1976 ;

• (b) the Schedule to the Social Security (Reciprocal Agreements) Order 1979 ;

• (c) the Schedule to the Social Security (Reciprocal Agreements) Order 1988 ;

• (d) Schedule 2 and Schedule 3 to the Social Security (Reciprocal Agreements) Order 1995 ;

• (e) Schedule 2 to the Social Security (Reciprocal Agreements) Order 1996 ;

• (f) Schedule 2 to the Social Security (Reciprocal Agreements) Order 2001 ; and

• (g) Schedule 2 to the Social Security (Reciprocal Agreements) Order 2005 .

SCHEDULE — CONVENTION ON SOCIAL SECURITY BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE KINGDOM OF THE NETHERLANDS

The United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands having established reciprocity in the field of social security by means of the Convention on Social Security between the United Kingdom and the Kingdom of the Netherlands, signed at The Hague on 11th August 1954;

Wishing to consolidate the above Convention and its extension and modification into a single document;

Wishing to extend and modify the scope of that reciprocity and to take account of changes in their legislation;

Have agreed as follows:

PART I — GENERAL PROVISIONS

Article 1 — Definitions

Article 2 — Persons covered

Subject to Article 33, this Convention shall apply:

• (a) as regards relations between Great Britain, Northern Ireland and the Netherlands, only to persons to whom, in relation to a specific event or circumstance, Regulation EEC 1408/71 and the Implementing Regulation do not apply, or do not become applicable, and who are, or have been subject to the legislation of one or both Parties, to members of their families and to their survivors, and

• (b) as regards relations between Jersey, Guernsey, the Isle of Man and the Netherlands, to persons who are, or have been, subject to the legislation of one or both Parties, to members of their families and to their survivors.

Article 3 — Scope of legislation

Article 4 — Equal treatment

A person to whom this Convention applies, while he is in the territory of one Party, shall enjoy the provisions of the legislation of the other Party under the same conditions as a national of that Party, subject to the special provisions of this Convention.

Article 5 — Refugees and stateless persons

This Convention shall apply to refugees and stateless persons who are residing in the territory of either Party. It shall apply under the same conditions to members of their families, and to their survivors, with respect to the rights they derive from those refugees or stateless persons.

Article 6 — Provisions for the export of benefit

PART II — PROVISIONS WHICH DETERMINE THE LEGISLATION APPLICABLE CONCERNING CONTRIBUTION LIABILITY

Article 7 — General provisions

Article 8 — Detached workers

Subject to Articles 9 and 10, where a person subject to the legislation of one Party, and employed by an employer with a place of business in the territory of that Party, is sent by that employer, either from the territory of that Party, or from a third country not party to this Convention, to work in the territory of the other Party, he shall continue to be subject only to the legislation of the former Party as if he were employed in the territory of that Party, provided that the employment in the territory of the other Party is not expected to last for more than three years.

Article 9 — Travelling personnel

Subject to Article 10, the following provisions shall apply to any person employed as a member of the travelling personnel of an undertaking engaged in the transport of passengers or goods whether for another undertaking or on its own account:

• (a) subject to sub-paragraphs (b) and (c), where a person is employed by an undertaking which has its principal place of business in the territory of one Party, he shall be subject only to the legislation of that Party as if he were employed in its territory even if he is employed in the territory of the other Party;

• (b) subject to sub-paragraph (c), where the undertaking has a branch or agency in the territory of one Party and a person is employed by that branch or agency, he shall be subject only to the legislation of that Party;

• (c) where a person is ordinarily resident in the territory of one Party and is employed wholly or mainly in that territory, he shall be subject only to the legislation of that Party, even if the undertaking which employs him does not have a place of business or branch or any agency in that territory.

Article 10 — Mariners and others employed on board a ship or vessel

Article 11 — Diplomats, government servants and consular employees

Article 12 — Treated as ordinarily resident

Where a person is gainfully employed in the territory of a Party and the legislation of the other Party does not apply to him in accordance with Article 7 (1) or (4) or ceases to apply to him under Articles 8, 9 (a) or (b), or 10 (2), the legislation of the former Party shall apply to him as if he were ordinarily resident in the territory of that Party.

Article 13 — Modification provisions

Exceptionally, the competent authorities or the competent institutions of the Parties may agree to modify the application of Articles 7 to 12 in respect of particular persons or categories of persons.

PART III — SPECIAL PROVISIONS FOR THE UNITED KINGDOM

Article 14 — Conversion formulae

PART IV — BENEFIT PROVISIONS

SECTION 1 — PROVISIONS FOR SICKNESS, MATERNITY, INVALIDITY AND UNEMPLOYMENT

Article 15 — Sickness benefit and maternity allowance

Article 16 — Invalidity benefit

Article 17 — Unemployment benefit

SECTION 2 — RETIREMENT PENSION AND SURVIVOR'S BENEFIT

Article 18 — General provisions

Article 19 — Pro-rata pensions

Article 20 — Insurance periods to be taken into account

For the purpose of applying Article 19 the competent authority of the United Kingdom shall take account only of insurance periods completed under the legislation of either Party which would be taken into account for the determination of pensions under the legislation of the United Kingdom if they had been completed under its legislation, and shall, where appropriate, take into account in accordance with its legislation insurance periods completed by a spouse or civil partner, or former spouse or former civil partner, as the case may be.

Article 21 — Overlapping periods

For the purpose of applying Article 19:

• (a) where a compulsory insurance period completed under the legislation of one Party coincides with a voluntary insurance period completed under the legislation of the other Party, only the compulsory insurance period shall be taken into account, provided that the amount of pension payable under the legislation of the latter Party under Article 19(2) shall be increased by the amount by which the pension payable under the legislation of that Party would have been increased if all voluntary contributions paid under that legislation had been taken into account;

• (b) where a contribution period completed under the legislation of one Party coincides with an equivalent period completed under the legislation of the other Party, only the contribution period shall be taken into account;

• (c) where an equivalent period completed under the legislation of one Party coincides with an equivalent period completed under the legislation of the other Party, account shall be taken only of the equivalent period completed under the legislation under which the insured person was last insured before the day when the periods in question began or, if he was never insured before that day, under the legislation under which he first became insured after the day when the periods in question ended;

• (d) where a compulsory contribution period completed under the legislation of one Party coincides with a compulsory contribution period completed under the legislation of the other Party, each Party shall take into account only the compulsory contribution period completed under its own legislation;

• (e) where a voluntary contribution period completed under the legislation of one Party coincides with a voluntary contribution period completed under the legislation of the other Party, each Party shall take into account only the voluntary contribution period completed under its own legislation;

• (f) where it is not possible to determine accurately the period of time in which certain insurance periods were completed under the legislation of one Party, such insurance periods shall be treated as if they did not overlap with insurance periods completed under the legislation of the other Party and shall be taken into account to the best advantage of the beneficiary.

Article 22 — Benefits to be excluded

For the purpose of applying Article 19 no account shall be taken of the following benefits payable under the legislation of Great Britain, Northern Ireland or the Isle of Man:

• (a) any additional pension payable;

• (b) any graduated retirement benefit payable by virtue of any graduated contributions paid before 6 April 1975;

• (c) any invalidity allowance or incapacity age addition payable;

but any such benefit shall be added to the amount of any benefit payable under that legislation in accordance with Article 19(2).

Article 23 — Non-simultaneous entitlement

Where a person does not simultaneously satisfy the conditions for entitlement to a retirement pension under the legislation of both Parties, his entitlement from each Party shall be established as and when he satisfies the conditions applicable under the legislation of that Party, taking account, where appropriate, of Article 19.

Article 24 — Survivor's benefit

SECTION 3 — BENEFITS FOR INDUSTRIAL ACCIDENTS AND INDUSTRIAL DISEASES

Article 25 — General provisions

SECTION 4

Article 26 — Child benefits

PART V — MISCELLANEOUS PROVISIONS

Article 27 — Recovery of advance payments and overpayments of benefit

Article 28 — Arrangements for administration and co-operation

Article 29 — Submission of claim or appeal

Article 30 — Currency and method of payment

Article 31 — Resolution of disputes

PART VI — TRANSITIONAL AND FINAL PROVISIONS

Article 32 — Prior acquisition of rights – old convention replaced by new convention – persons covered by this convention

Article 33 — Prior acquisition of rights – old convention replaced by new convention – persons excluded from this convention

As regards persons who, by virtue of Article 2, are not covered by this Convention, the following provisions shall apply:

• (a) any rights in course of acquisition under the former Convention before the date of entry into force of this Convention shall be determined in accordance with Regulation EEC 1408/71 and the Implementing Regulation;

• (b) notwithstanding Article 32(1), the former Convention shall remain applicable to any award of a benefit, pension or allowance which was made under it prior to the date of entry into force of this Convention.

Article 34 — Entry into force

Article 35 — Duration of the convention

This Convention shall remain in force for an indefinite period. The United Kingdom of Great Britain and Northern Ireland or the Kingdom of the Netherlands may denounce it at any time by giving six months' notice in writing to the other Party.

Article 36 — Rights on termination of this convention not replaced by another

In the event of the termination of this Convention and unless a new Convention containing provisions regulating the matter is made, any right to benefit acquired by a person in accordance with this Convention shall be maintained and negotiations shall take place for the settlement of any other rights then in course of acquisition by virtue of its provisions.

IN WITNESS WHEREOF the undersigned, duly authorised by their respective Governments, have signed this Convention only in the English language.

Done in duplicate at The Hague this twenty-first day of December 2005 in the English language only.

For the Government of the United Kingdom of Great Britain and Northern Ireland:

Signed

Christine Cook — Deputy Clerk of the Privy Council

Explanatory note

(This note is not part of the Order)

Footnotes

[^f00001]: 1992 c. 5.

[^f00002]: See Cm 6765.

[^f00003]: 1992 c. 4.

[^f00004]: 1995 c. 18.

[^f00005]: S.I. 1955/874.

[^f00006]: S.I. 1976/225.

[^f00007]: S.I. 1979/290.

[^f00008]: S.I. 1988/591.

[^f00009]: S.I. 1995/767.

[^f00010]: S.I. 1996/1928.

[^f00011]: S.I. 2001/407.

[^f00012]: S.I. 2005/2765.

The United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands having established reciprocity in the field of social security by means of the Convention on Social Security between the United Kingdom and the Kingdom of the Netherlands, signed at The Hague on 11th August 1954;

Wishing to consolidate the above Convention and its extension and modification into a single document;

Wishing to extend and modify the scope of that reciprocity and to take account of changes in their legislation;

Have agreed as follows:

Subject to Article 33, this Convention shall apply:

• (a) as regards relations between Great Britain, Northern Ireland and the Netherlands, only to persons to whom, in relation to a specific event or circumstance, Regulation EEC 1408/71 and the Implementing Regulation do not apply, or do not become applicable, and who are, or have been subject to the legislation of one or both Parties, to members of their families and to their survivors, and

• (b) as regards relations between Jersey, Guernsey, the Isle of Man and the Netherlands, to persons who are, or have been, subject to the legislation of one or both Parties, to members of their families and to their survivors.

A person to whom this Convention applies, while he is in the territory of one Party, shall enjoy the provisions of the legislation of the other Party under the same conditions as a national of that Party, subject to the special provisions of this Convention.

This Convention shall apply to refugees and stateless persons who are residing in the territory of either Party. It shall apply under the same conditions to members of their families, and to their survivors, with respect to the rights they derive from those refugees or stateless persons.

Subject to Articles 9 and 10, where a person subject to the legislation of one Party, and employed by an employer with a place of business in the territory of that Party, is sent by that employer, either from the territory of that Party, or from a third country not party to this Convention, to work in the territory of the other Party, he shall continue to be subject only to the legislation of the former Party as if he were employed in the territory of that Party, provided that the employment in the territory of the other Party is not expected to last for more than three years.

Subject to Article 10, the following provisions shall apply to any person employed as a member of the travelling personnel of an undertaking engaged in the transport of passengers or goods whether for another undertaking or on its own account:

• (a) subject to sub-paragraphs (b) and (c), where a person is employed by an undertaking which has its principal place of business in the territory of one Party, he shall be subject only to the legislation of that Party as if he were employed in its territory even if he is employed in the territory of the other Party;

• (b) subject to sub-paragraph (c), where the undertaking has a branch or agency in the territory of one Party and a person is employed by that branch or agency, he shall be subject only to the legislation of that Party;

• (c) where a person is ordinarily resident in the territory of one Party and is employed wholly or mainly in that territory, he shall be subject only to the legislation of that Party, even if the undertaking which employs him does not have a place of business or branch or any agency in that territory.

Where a person is gainfully employed in the territory of a Party and the legislation of the other Party does not apply to him in accordance with Article 7 (1) or (4) or ceases to apply to him under Articles 8, 9 (a) or (b), or 10 (2), the legislation of the former Party shall apply to him as if he were ordinarily resident in the territory of that Party.

Exceptionally, the competent authorities or the competent institutions of the Parties may agree to modify the application of Articles 7 to 12 in respect of particular persons or categories of persons.

For the purpose of applying Article 19 the competent authority of the United Kingdom shall take account only of insurance periods completed under the legislation of either Party which would be taken into account for the determination of pensions under the legislation of the United Kingdom if they had been completed under its legislation, and shall, where appropriate, take into account in accordance with its legislation insurance periods completed by a spouse or civil partner, or former spouse or former civil partner, as the case may be.

For the purpose of applying Article 19:

• (a) where a compulsory insurance period completed under the legislation of one Party coincides with a voluntary insurance period completed under the legislation of the other Party, only the compulsory insurance period shall be taken into account, provided that the amount of pension payable under the legislation of the latter Party under Article 19(2) shall be increased by the amount by which the pension payable under the legislation of that Party would have been increased if all voluntary contributions paid under that legislation had been taken into account;

• (b) where a contribution period completed under the legislation of one Party coincides with an equivalent period completed under the legislation of the other Party, only the contribution period shall be taken into account;

• (c) where an equivalent period completed under the legislation of one Party coincides with an equivalent period completed under the legislation of the other Party, account shall be taken only of the equivalent period completed under the legislation under which the insured person was last insured before the day when the periods in question began or, if he was never insured before that day, under the legislation under which he first became insured after the day when the periods in question ended;

• (d) where a compulsory contribution period completed under the legislation of one Party coincides with a compulsory contribution period completed under the legislation of the other Party, each Party shall take into account only the compulsory contribution period completed under its own legislation;

• (e) where a voluntary contribution period completed under the legislation of one Party coincides with a voluntary contribution period completed under the legislation of the other Party, each Party shall take into account only the voluntary contribution period completed under its own legislation;

• (f) where it is not possible to determine accurately the period of time in which certain insurance periods were completed under the legislation of one Party, such insurance periods shall be treated as if they did not overlap with insurance periods completed under the legislation of the other Party and shall be taken into account to the best advantage of the beneficiary.

For the purpose of applying Article 19 no account shall be taken of the following benefits payable under the legislation of Great Britain, Northern Ireland or the Isle of Man:

• (a) any additional pension payable;

• (b) any graduated retirement benefit payable by virtue of any graduated contributions paid before 6 April 1975;

• (c) any invalidity allowance or incapacity age addition payable;

but any such benefit shall be added to the amount of any benefit payable under that legislation in accordance with Article 19(2).

Where a person does not simultaneously satisfy the conditions for entitlement to a retirement pension under the legislation of both Parties, his entitlement from each Party shall be established as and when he satisfies the conditions applicable under the legislation of that Party, taking account, where appropriate, of Article 19.

As regards persons who, by virtue of Article 2, are not covered by this Convention, the following provisions shall apply:

• (a) any rights in course of acquisition under the former Convention before the date of entry into force of this Convention shall be determined in accordance with Regulation EEC 1408/71 and the Implementing Regulation;

• (b) notwithstanding Article 32(1), the former Convention shall remain applicable to any award of a benefit, pension or allowance which was made under it prior to the date of entry into force of this Convention.

This Convention shall remain in force for an indefinite period. The United Kingdom of Great Britain and Northern Ireland or the Kingdom of the Netherlands may denounce it at any time by giving six months' notice in writing to the other Party.

In the event of the termination of this Convention and unless a new Convention containing provisions regulating the matter is made, any right to benefit acquired by a person in accordance with this Convention shall be maintained and negotiations shall take place for the settlement of any other rights then in course of acquisition by virtue of its provisions.

IN WITNESS WHEREOF the undersigned, duly authorised by their respective Governments, have signed this Convention only in the English language.

Done in duplicate at The Hague this twenty-first day of December 2005 in the English language only.

For the Government of the United Kingdom of Great Britain and Northern Ireland:

Editorial notes

[^c1830909]: 1992 c. 5.

[^c1830910]: See Cm 6765.

[^c1830911]: 1992 c. 4.

[^c1830912]: 1995 c. 18.

[^c1830913]: S.I. 1955/874.

[^c1830914]: S.I. 1976/225.

[^c1830915]: S.I. 1979/290.

[^c1830916]: S.I. 1988/591.

[^c1830917]: S.I. 1995/767.

[^c1830918]: S.I. 1996/1928.

[^c1830919]: S.I. 2001/407.

[^c1830920]: S.I. 2005/2765.