What should an employment contract in the Netherlands include?
The following should be included in any Dutch employment contract:
- The names and contact information for the company and employees.
- A detailed explanation of duties and responsibilities.
- The days and hours each week that employees are expected to be present at work.
- Salary, hourly rate, and other compensation details.
- An employment termination, including notice periods if applicable.
- Non-compete and confidentiality covenants protect the employer’s interests.
All parties to a contract for employment must read, comprehend, and accept its conditions before signing the document.
What types of employment contracts exist in the Netherlands?
The most typical types of employment contracts in the Netherlands are:
1. Employee contract
The different types of employment contracts in the Netherlands are as follows:
- Permanent employment contract: In the Netherlands, a permanent employment contract is a type of employment contract that does not contain a termination date. It’s the gold standard in terms of work stability and security, and it’s a long-term agreement between an employer and an employee. Benefits, like paid time off, sick days, and a notice period in the event of termination, are included in this contract.
- Fixed-term employment: During the time that they are employed under a fixed-term contract, workers are entitled to the same benefits as those who are employed on a permanent basis. This includes entitlement to a fair wage, working conditions, holiday pay, and statutory leaves. These types of contracts are frequently used for short-term or seasonal positions and tasks or projects with a clear beginning and end point.
2. Zero-hour contract
This type of contract does not guarantee specific working hours per week. The worker must only show up to work if the company specifically requests it. Typically, the worker is compensated based on the number of hours they put in. Rights such as receiving at least the minimum wage, accruing vacation time, being shielded from discrimination, and receiving holiday pay are guaranteed in such contracts.
3. Agency work contract
This type of contract is used when an employee is hired by a temporary employment agency and assigned to work at a client’s organization. The employee is temporarily assigned, and the agency serves as the employer. The agency is responsible for complying with labor laws and providing employees with the rights and protections they are entitled to.
How to hire employees in the Netherlands?
Workers in the Netherlands are guaranteed not only the statutory minimum wage but also any other benefits to which they are legally entitled. Employers must also abide by all employment laws and standards currently in existence.
In the Netherlands, a company must be registered with the state and given a tax ID number before legally conducting business.
If you find yourself in this position, it is best to find a company that can serve as your Employer of Record no matter where in the world you may be. With Native Teams’ Employer of Record service, you can outsource HR, payroll, and tax administration to a reliable third party.