Navigating Dutch employment law can be a challenge for employers, especially those who are new to the Netherlands or are expanding their business. To help you stay compliant and informed, we’ve compiled a list of the 10 most frequently asked questions about Dutch employment law.
1. What are the different types of employment contracts in the Netherlands?
Dutch employment law recognizes three main types of contracts:
Indefinite contracts (onbepaalde tijd): These have no fixed end date and provide long-term job security for employees.
Fixed-term contracts (bepaalde tijd): These are set for a specific duration, and you can offer a maximum of three consecutive fixed-term contracts within a three year period before it automatically becomes an indefinite contract.
Temporary contracts (uitzend): These are used when employing someone through a temporary work agency.
2. Can I include a probation period in an employment contract?
Yes, probation periods are allowed in Dutch employment law. They are limited to one month for fixed-term contracts longer than six months and shorter than two years, and two months for indefinite contracts or fixed-term contracts of two years or longer.
3. What are the notice periods for terminating an employment contract?
The notice period depends on the employee’s years of service:
- Less than five years: one month
- Five to ten years: two months
- Ten to fifteen years: three months
- Fifteen years or more: four months
Keep in mind that these notice periods can be adjusted by a collective labor agreement (CAO) or the individual employment contract.
4. What are the minimum wage requirements in the Netherlands?
The Dutch government sets the minimum wage, which is adjusted twice a year. Employers must ensure they pay their employees at least the applicable minimum wage. The current minimum wage rates can be found on the Dutch government’s website.
5. How many vacation days are employees entitled to?
Full-time employees in the Netherlands are entitled to a minimum of 20 vacation days per year. Employers can offer additional days, and any extra vacation days should be specified in the employment contract.
6. How does sick leave work in the Netherlands?
If an employee falls sick, they are entitled to receive at least 70% of their salary for up to two years, with a minimum of the applicable minimum wage. Employers are responsible for paying the employee’s salary during this time and must work with the employee to facilitate their return to work.
7. Can employees request flexible working arrangements?
Yes, employees who have worked for a company for at least 26 weeks can request changes to their working hours, schedule, or location. Employers can only refuse these requests for specific business-related reasons.
8. What is the process for dismissing an employee?
To dismiss an employee in the Netherlands, you must have a valid reason (‘reasonable ground’), such as poor performance, misconduct, or redundancy. You will also need to seek approval from the Employee Insurance Agency (UWV) or a court, depending on the situation. Always consult with an employment law expert before initiating dismissal procedures.
9. Are non-compete clauses enforceable in the Netherlands?
Non-compete clauses are generally enforceable but must be reasonable in scope and duration. They are typically only allowed in indefinite contracts or fixed-term contracts if there is a specific justification. When drafting a non-compete clause, make sure it is tailored to your specific situation and consider seeking legal advice.
10. What are the key aspects of the Dutch Working Conditions Act (Arbowet)?
In short, the key aspects of the Dutch Working Conditions Act (Arbowet) include:
1. Ensuring safe and healthy working conditions for employees.
2. Defining general duties for employers and employees.
3. Requiring a Risk Inventory and Evaluation (RI&E).
4. Implementing occupational health services.
5. Setting requirements for workplace health and safety policies.
6. Enforcing rights and obligations related to working hours, breaks, and rest periods.
7. Regulating safety measures for specific industries and tasks.
May 2023
