Hire in The Netherlands

Employer of record in the Netherlands

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in the Netherlands, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in the Netherlands ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in the Netherlands and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in the Netherlands

Employment in the Netherlands is governed by the Dutch Civil Code as well as the Dutch Constitution and several specific employment laws including the Works Councils Act, the Working Conditions Act, the Collective Dismissal Act, the Collective Bargaining Agreement Act, the Minimum Wages and Minimum Vacation Compensation Act, and the Equal Treatment Act.

An employment contract can be oral or written, but the employer must provide a written agreement within a month of beginning employment.

Employment contracts in the Netherlands

As you look to hire employees in the Netherlands, here are some common regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Under the Working Hours Act, the maximum workday is 12 hours, and the maximum workweek is 60. The average workweek for an employee cannot exceed 55 hours over four weeks, and 48 hours over 16 weeks. An employee is entitled to 36 consecutive hours of rest following a five-day workweek.

There are even more restrictions on working hours for work performed during the night shift, which is any hour of work between midnight and 6 a.m.

Employees are entitled to a 30-minute break after working five and a half hours and a 45-minute break after working more than 10 hours.

Employees must consent to work on Sundays and are entitled to 13 free Sundays each year or more if there is a collective labor agreement in place.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind: 

• Effective January 1, 2025, the hourly minimum wage will increase to 14.06 euros (US$15.20) from 13.68 euros.
• There is no set overtime pay, but it can be established by the employment contract or collective agreements. 
• Employers must pay employees either weekly or monthly and provide them with pay slips with information about their salaries. 
• Effective July 1 the Caribbean Netherlands’ hourly minimum wage for the islands of Bonaire, Sint Eustatius, and Saba increases to US$10.10 from US$9.06 in Bonaire, US$8.97 in Sint Eustatius, and US$9.54 in Saba.

As your employer of record in the Netherlands, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Bonuses are not required but it is customary to give an extra month’s salary (13th month bonus) in November or December.

Probationary period

Although most collective agreements contain a probationary period, employers are not required to include it. Probationary periods generally last from one to two months, depending on the type of contract. For fixed-term contracts, only those that are longer than six months may have a probationary period. Contracts can be terminated during this probationary period.

Termination and severance

To terminate someone for a reason other than gross misconduct or judicial intervention, employers must get permission from the Public Employment Service.

When both parties consent to termination, there is a 14-day reconsideration period during which the employee can withdraw their consent. If that happens, either employment continues, or they try again to reach a settlement.

Employees are entitled to a “transition allowance” when an employer terminates an employment agreement for 24 months or longer. The transition payment is one-third of the monthly wage per year of employment for the first 10 years, and half of the monthly wage per year worked thereafter. The allowance cannot exceed €75,000 unless the employee’s yearly salary exceeds this amount, in which case this higher amount counts as the maximum.

Employee benefits and paid leave in the Netherlands

When negotiating terms of an employment contract with a candidate in the Netherlands, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Under the Work and Care Act, pregnant employees are entitled to at least 16 weeks of leave that must begin between four and six weeks before the due date. It can continue for 10 weeks after birth, although employees may return to work sooner if it has been at least 42 days since birth.

Maternity pay is equal to 100% of the employee’s salary up to a limit set by national social security legislation. The government funds maternity leave, which is paid through the employer.

Per the Working Time Act of 1996, nursing mothers can feed their baby or pump on the job site for up to nine months after the birth and can use up to 25% of their working time to do so with no loss in wages.

Vacation

Employees are entitled to four times the number of days that they regularly work each week to take as an annual paid vacation e.g. 20 days for a five-day workweek. Collective bargaining agreements often provide up to 25 days. Unused leave can be carried over for six months. Employers must pay a holiday allowance equal to 8% of the employee’s gross annual salary each year.

Holidays

Dutch law does not require employers to give workers national or public holidays off or to pay them extra if they work on those days, so employer policies on holiday leave are established by collective bargaining agreements or employment contracts.

The Netherlands recognizes two national holidays:

• The King’s Birthday 
• Liberation Day (celebrated every five years in years ending in -0 and -5) 

 The following public holidays are observed in the Netherlands: 

• New Year’s Day 
• Good Friday 
• Easter Monday 
• Ascension Day 
• Whit Monday 
• Christmas Day 
• Boxing Day 

Public holidays that fall on weekends are not moved to a weekday.

Sick leave

Employees with contracts are entitled to up to two years of paid sick leave at a minimum of 70% of their wages. An employee cannot be terminated while on sick leave unless the employer gets authorization from the UWV WERKbedrijf (Public Employment Service) - a semi-governmental organization, or if a collective bargaining agreement allows for it.

Health coverage

The legal retirement age in the Netherlands is 66 years and 7 months in 2022. In 2023, the retirement age rises to 66 years and 10 months and in 2024 and 2025 it will be 67 years. From 2026 onwards it will only be increased if life expectancy continues to rise.

Under the General Old Age Pensions Act, Dutch residents who reach retirement age are eligible to start receiving a flat-rate pension benefit based on the net minimum wage and the person’s living situation. Employees and employers make contributions to the social insurance system.

Additional benefits

In addition to healthcare benefits, employees in the Netherlands are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in the Netherlands, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: October 24, 2024

Employee onboarding with an employer of record in the Netherlands

We write and validate all local employment contracts, streamlining the onboarding process for you and your employees in the Netherlands—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in the Netherlands, we will:   

• Schedule a welcome call to discuss HR and employment information for the Netherlands, as well as answer any questions 
• Prepare a customized employment contract in English or other local language 
• Share the employment contract and benefits information with the new employee for signature and review 
• Gather tax and banking information from the employee to set up payroll 
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll 

The entire onboarding process for the employee is often completed in as little as two weeks. 

Partner with Safeguard Global as your Netherlands employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in the Netherlands. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today. 

Disclaimer: The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.