Employment Regulations
Employment law in the Netherlands is not contained under a single law. Instead it is governed by statutory regulations codified in (among other laws) the Dutch Civil Code, then furthermore governed by (among other things) in a Collective Labour Agreement (if applicable), internal regulations (if applicable) and the individual employment contract itself.
Employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment. However, options such as using Collective Labour Agreements and temp agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Netherlands.
The official website for employment information is at the Ministry of Social Affairs and Employment.
Key Factors to Consider When Employing in Netherlands:
There are several key areas to be aware of within Netherlands’s employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department. These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the Netherland laws and rules for both Netherland employees as well as foreign nationals.
Employee Entitlements
Time Off Work
Employees in the Netherlands are however also entitled to several kinds of special leaves, including:
- Adoption leave (adoptieverlof)
- Emergency leave (calamiteitenverlof)
- Short-term compassionate leave (kortdurend zorgverlof)
- Long-term compassionate leave (langdurig zorgverlof)
Annual Leave Accrual Entitlement
The number of days of paid statutory annual leave is equivalent to the number of working days a week multiplied by four, i.e. in most cases 20 days of leave (five work days a week). Workers on leave receive pay from their employer, plus a ‘bonus’ equivalent to 8% of annual earnings. Accumulation of leave entitlement is possible; employees can “save up” their days of paid leave.
Maternity Leave in Netherlands
Maternity leave is sixteen weeks. Leave must start four weeks before birth and up to six weeks can be taken the birth, with ten weeks after the birth. Paternity leave is available for two working days within four weeks after the birth of the child.
Parental leave is twenty-six times the number of working hours per week per parent per child. For example, a full-time job of 38 hours a week gives a leave entitlement of 988 hours (i.e. 26 weeks). Leave is unpaid and has to be taken part time; full-time is only possible if the employer agrees.
Probation Period
Any probationary period must be laid down in writing. In the case of an open-ended employment contract or a contract fixed for two or more years, the maximum period is two months. Otherwise, the maximum period is one month.
Pension Requirements
The pension scheme in the Netherlands is a “collective pension scheme” where contributions are financed from employee-contributions paid on income at a rate of 17.9%, and from tax revenue. The employer may voluntarily make a contribution.
