KNOWLEDGE BASE Employment Law
Employment Law in the Netherlands
If you employ staff in the Netherlands, there are many laws and regulations you must follow, including but not limited to: pay, work and rest periods, taxes, medical examinations, and holiday entitlement. Furthermore, before you hire employees, you must register as an employer with the Dutch Tax and Customs Administration.
Employers are required to provide employees with employment particulars in writing, or with the employee’s consent, electronically. This requirement can be fulfilled by including it in an employment contract or separately. The required particulars include:
the name and place of residence of the employer and employee;
the location(s) where work is to be carried out;
the employee’s job title and the nature of the work;
the usual working hours;
salary and pay period information;
date when the employee joined the company;
the term of the contract (if for a definite period of time);
the length of the trial period (if applicable);
the notice period;
pension information, if applicable;
a non-compete or non-solicitation clause, if applicable; and
Applicability of the Collective Labour Agreement (CAO).
You must comply with minimum wage requirements, which may vary based on the type of employee, e.g., regular, temporary, on-call, etc. Furthermore, the statutory minimum wage must be paid by bank transfer.
Employees in the Netherlands are entitled to sick pay in the amount of 70% of their last earned wages.
Under the Working Hours Act (ATW), there are strict working hours and mandatory break requirement you must comply with, including Sunday hours. These rules apply to all employees 18 years and older. There are different rules that apply to employees under 18 years and women who are pregnant or who have just given birth.
Employees are entitled to paid holiday leave (known as “vacation” in some countries). The minimum holiday leave is at least four times the number of days the employee works per week. So, an employee that works five days per week is entitled to at least 20 days of paid holiday leave per year.
Employees in the Netherlands are entitled to various leave schemes, including maternity, paternity, adoption, and care leave.
The Netherlands has specific and strict dismissal regulations and procedures.
Above is only a short list of responsibilities and obligations you may have as an employer in the Netherlands. The laws and regulations that apply to your specific employment relationship will vary depending on what that relationship is. We strongly recommend that you work with an expert who can help you with your employment obligations in the Netherlands.
The Dutch government created this step-by-step guide to employing staff in the Netherlands.
The Dutch government created this step-by-step guide to outsourcing work, that is hiring contractors, subcontractors, and self-employed entrepreneurs.
The Dutch government created this step-by-step guide for employing temporary staff.
The Dutch government created this step-by-step guide for bringing employees to the Netherlands to work.
KNOWLEDGE BASE Employment Law