Navigating Dutch employment legislation can be complex without local legal specialists.
At N2S, we simplify compliance, making it clear and straightforward for our clients and customers to grow and excel in Netherlands.
N2S provide expert solutions for businesses looking to expand or grow into Netherlands, including compliance, payroll management and employment support. Request our Services to find out more about how we can help you.
Navigating Dutch employment legislation can be complex without local legal specialists.
At N2S, we simplify compliance, making it clear and straightforward for our clients and customers to grow and excel in Netherlands.
Receive a walkthrough on how to hire and employ in the Netherlands, please fill out your details below.
Onboarding in Netherlands can be straightforward for providers, like N2S, that have standard templates and processes.
In the Netherlands, collective agreements are usually applicable to employments – which enhances employee rights beyond statutory basics, in accordance with standard industry practices.
There are two core engagement types in Netherlands:
1. Employment – which can permanent or fixed term
2. Independent contractor engagements – which should be project or time limited
Customers should consider carefully how they wish to engage their workforce and N2S can support customers in implementing compliant and scalable solutions.
Customers should ensure that Independent Contractors (ICs) that they use are appropriately vetted and classified. This will help protect the business from misclassification claims.
Key considerations include the below, if you require further information or support, please contact us.
- Contractors should be distinct from employees and be in business on their own account
- The following elements should be considered when making a classification determination:
o Control
o Subcontracting
o Equipment
o Financial risk
o Management
o Contracts
o Opportunity for profit
Employer’s social security contribution in Netherlands ranges from 23.38% to 33.81%.
Netherlands does have a minimum wage which varies each year.
Standard working hours in Netherlands are circa 40 hours per week.
The standard workweek is Monday to Friday, eight hours per day.
Any working time in excess of daily working hours is considered overtime. Overtime compensation is compulsory and mandated in the collective agreement/employment contract.
In Netherlands, annual leave is 20 days, in addition to paid public holidays (as set out in collective labour agreements).
Sick leave in the Netherlands is 70% of salary up to two years, depending on the collective agreement. Most collective agreements require salary at 100%. This is paid by the employer.
Maternity leave in Netherlands is 16 weeks; and maternity pay is paid by the employer, but some can be reclaimed from the state.
Paternity leave in Netherlands is up to 1 week; this is at full pay, paid by the state. Partners have the right to take additional unpaid leave of up to 5 weeks.
Parental leave in Netherlands is 26 work weeks – the first 9 weeks are paid by the state, and remaining are unpaid.
All of the above is subject to enhancements in the applicable collective agreement.
The termination process in Netherlands is relatively straightforward – terminations must have followed a substantial process, and permission must be applied from the Dutch employment agency for dismissal to be valid. This would usually include a hearing process.
Notice periods start at 1 month of notice, and increase to 4 months of notice for employees over 15 years of service.
Probationary periods have an easier termination process, and probationary periods can be up to 2 months for permanent contracts.
Employees are entitled to transition payments where the employment has been terminated, and this is usually 1/3 of 1 month’s salary for each calendar year of the employment. This can vary due shorter employments, and as set out in a collective agreement.
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