Hiring guide in Netherlands

What should I know about hiring in the Netherlands?

Legal framework

Types of employment contracts

There are two types of employment contracts — permanent employment contracts and fixed-term employment contracts. 

Permanent employment contracts, called “vast contract” in Dutch, offer indefinite-term employment, providing stability and long-term commitment between the employer and employee. 

On the other hand, fixed-term employment contracts, known as “tijdelijk contract,” have a set end date or are tied to a particular project or task. They provide flexibility for short-term engagements or temporary work needs for both employers and employees.

Content of an employment contract

An employment contract in the Netherlands must include the identification of the parties involved, including the full names and addresses of the employer and the employee, outlining their respective roles in the employment relationship. 

The contract should define other details such as the regular working hours per day or week, salary amount, start date, leave entitlements, and termination procedures.

 Download a free employment contract for the Netherlands through Native Teams.

Oral, written or electronic employment contracts

In the Netherlands, verbal agreements are just as valid as written ones for employment contracts. That said, the absence of a written contract doesn’t invalidate it.

Nevertheless, if the employment contract isn’t written, the employer must provide the employee with written confirmation of the agreed-upon terms and conditions.

Probationary period

The length of a trial period, known as the “proeftijd,” depends on the duration of the employment contract in the Netherlands. For fixed-term contracts lasting more than 6 months but less than 2 years or without a specified end date, a trial period of up to 1 month is allowed. For fixed-term contracts exceeding 2 years or for indefinite contracts, the trial period can be up to 2 months.

Working hours

Full-time employment usually involves working 36 to 40 hours per week, spread over five days, with daily shifts lasting between 7 to 8 hours.

Night work

According to Dutch labour regulations, employees are limited to a maximum of 117 night shifts per year. Exceptions allowing up to 140 shifts are granted only under critical circumstances.

Types of leaves and breaks

Employees are entitled to breaks based on the length of their workday.

Employees who work more than 5 ½ hours are entitled to a minimum break of 30 minutes, which can be split into two 15-minute breaks. For shifts longer than 10 hours, employees must have at least 45 minutes of break time, which can be divided into several breaks, each lasting at least 15 minutes.

Annual leave

Employees are entitled to a statutory annual vacation allowance, which is calculated as four times the number of hours they work per week. For example, employees who work 25 hours a week are entitled to 100 holiday hours per year.

Public holidays

The public holidays in the Netherlands include Nieuwjaarsdag (New Year’s Day), Goede vrijdag (Good Friday), Eerste en tweede paasdag (Easter Sunday and Easter Monday), Koningsdag (King’s Day), Bevrijdingsdag (Liberation Day), Hemelvaartsdag (Ascension Day), Eerste en tweede pinksterdag (Whit Sunday and Whit Monday), and Eerste en tweede kerstdag (Christmas Day and Boxing Day).

Salary

As of January 2024, the gross minimum wage for employees aged 21 and over is €1,753.60 per month for full-time work.

To calculate the salary and taxes in the Netherlands, click here.

Sick leave

The employer must report the employee’s sickness to the UWV within 4 working days and notify them of their recovery within 2 working days. If an employee’s fixed-term contract ends while on sick leave, the employer must register the sick employee with the UWV on their last working day.

Parental leave

Parents can take up to 26 times their weekly working hours in parental leave, meaning an employee working 40 hours per week is entitled to 1,040 hours of leave. During the first nine weeks of this leave, parents receive financial support amounting to 70% of their daily wage from the Employee Insurance Agency (UWV), helping to reduce the financial impact of taking time off work.

Paternity and maternity leave

The employee is eligible for one week of paid parental leave for partners, which can be taken flexibly within the first four weeks after the child’s birth. After the initial week of paid leave, partners are entitled to an additional five weeks of unpaid leave within the first six months after the birth.

Methods of employment termination

Employment termination in the Netherlands can occur due to the death of the employee or the employer (if the employer is an individual) or through dismissal initiated by the employer for reasons such as misconduct, redundancy, or incapacity to perform the job.

They can also be dissolved by a court order, typically due to irreconcilable differences between the parties, or by dismissal authorised by the Public Employment Service (PES) based on specific grounds and procedures. Additionally, termination can occur through mutual agreement or by the conclusion of a fixed-term employment contract.

Ordinary dismissal by employer

Ordinary terminations in the Netherlands can occur for several reasons: economic factors, long-term illness lasting more than two years, frequent absenteeism, poor performance, culpable behaviour, conscientious objections, a disrupted employment relationship, and other relevant circumstances.

Notice period and challenging the dismissal

In ordinary dismissal cases, the statutory notice period for an employee depends on their length of service with the company. Employees with less than five years of service require one month’s notice. Those with five to less than ten years of service require two months’ notice. A three-month notice period is necessary for employees with ten to fourteen years of service. Employees with fifteen or more years of service must receive four months’ notice.

Rights and obligations of unemployed individuals

Unemployment benefits, known as “WW-uitkering” (short for Werkloosheidswet), are provided by the Employee Insurance Agency (UWV) to financially support individuals who have lost their jobs through no fault of their own.

Unemployed individuals can also access job seeker support services, including job search assistance, career counselling, and job training programs to improve their skills and marketability. They might also qualify for healthcare coverage and childcare allowance. 

In addition, they must actively seek employment and engage in job search activities, such as applying for suitable job openings, attending interviews, and participating in job training programs, as a condition for receiving unemployment benefits.

Severance pay

Exceptions to receiving severance pay include scenarios such as dismissal by mutual consent, termination due to seriously culpable conduct or neglect, bankruptcy, retirement, alternative arrangements specified in a collective agreement, or entering into a new fixed-term employment contract while the existing contract is still valid.

Prohibition of competition

A contractual penalty may be agreed upon for violating the non-compete clause. If an ex-employee fails to comply with this clause, the employer can take the matter to court. The court can enforce compliance by imposing a penalty, and the employer may also claim damages.

Remote working policy

The Flexible Working Act allows employees to request a work-from-home arrangement. To do this, employees must submit a written request to their employer indicating their wish to work from home either partially or entirely.

Responsibilities within a remote work arrangement

The employer must respond within one month to the employee’s request to work remotely. If the employer does not respond within the specified timeframe, the employee can start working remotely as proposed.

Remote work often results in additional expenses for employees, such as heating, electricity, and consumables like tea and coffee. To help cover these costs, employees may receive a “working from home allowance” of €2.15 per day.

Health and safety at home

Employees who work on-site also have the option to propose changes to their employment contracts to include remote work arrangements. These amendments can be customised to suit specific circumstances, such as illness, disability, pregnancy, parental duties for children up to eight years old, or caring for immediate family members or household members.

Intellectual property rights

If an invention is developed during employment, the employer is entitled to the patent rights unless otherwise specified in the employment contract. Similarly, copyright laws usually designate the employer as the author of works created by employees during their service unless otherwise agreed.

Employee data privacy

In the Netherlands, the GDPR significantly influences employment law, requiring employers to manage employee privacy and data compliance carefully. Alongside GDPR, Article 8 of the European Convention on Human Rights and Article 10 of the Dutch Constitution provide additional privacy protections.

What are the advantages of hiring employees from the Netherlands vs other countries?

The geographical location of the Netherlands offers strategic advantages for businesses operating in Europe. It serves as a gateway to major European markets, with excellent transport and logistics infrastructure. 

What’s more, Dutch culture is known for its openness, directness, and collaboration, making Dutch employees a good fit for diverse international teams.

Finally, The Netherlands has a reputation for innovation and creativity. Dutch employees often bring a forward-thinking approach to problem-solving and are open to adopting new technologies and methodologies.

Why use Native Teams for hiring in the Netherlands?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.