Finding a job in the Netherlands can be challenging, especially as an expat who does not yet speak Dutch. Thus, when you finally receive a job offer, it might be tempting to accept it without thoroughly reviewing the employment contract. However, be cautious: once signed, the contract becomes legally binding.
To help you avoid unexpected obligations or conditions, we have drafted this article to guide you through the essentials of a Dutch employment contract so that you fully understand what you are agreeing to.
1. Is a written employment contract required?
No, Dutch law does not require an employment contract to be in writing. However, for a verbal employment contract to be legally binding, it must meet the following criteria:
- The employer must have the authority to give the employee instructions to perform certain work.
- The employee must have an obligation to personally perform the work provided by the employer.
- In return for his services, the employee must receive payment from the employer.
While verbal employment contracts are legally valid under Dutch law, it is strongly recommended to put the terms of the agreement in writing. A written contract helps prevent potential disputes or misunderstandings regarding your rights, obligations, and employment conditions.
2. Different types of Dutch employment contracts
It is important to understand the type of employment contract you have been offered. If you are not entirely satisfied with the type of contract, do not be discouraged. It is common practice in the Netherlands for employers to initially offer a fixed-term contract, with the possibility of converting it into to a permanent contract at a later stage.
Below are the most common types of employment contracts offered to employees in the Netherlands, including expats:
2.1. Permanent contract
This type of contract is generally the most desirable, as it provides greater job security, something especially valuable for expats. However, permanent contracts are rarely offered at the start of employment. A permanent contract has no fixed end date and continues to run until either the employee resigns or the employer terminates the permanent contract for a legally valid reason.
2.2. Fixed-term contract
As the name suggests, this contract is only for a specific period or for the duration of a certain project. Once the term ends, so does the contract.
However, under Dutch law, if an employee receives more than three successive fixed-term contracts, or if the total duration of successive fixed-term contracts exceed three years, the contract will automatically be converted into an contract for an indefinite period. However, a gap of more than six months between contracts resets the chain.
2.3. Contract with a recruitment agency
Under this type of contract, the employee is officially employed by a recruitment agency, which act as the legal employer and is responsible for paying the employee’s salary. However, the employee performs their work for a third-party company rather than directly for the recruitment agency.
Now that you understand the type of contract you have been offered and the differences between the various contract types, it is important to carefully review the individual clauses within your contract.
3. Key clauses in your employment contract to review
Every employment contract should include the basic provisions such as working hours, gross monthly salary, holiday and sick leave entitlements, and a clear description of your job responsibilities.
While these clauses are essential and often the only ones employees pay close attention to, it is equally important to review the other commonly overlooked clauses that can significantly impact your employment conditions, such as the following:
3.1. Termination clause
It is essential to understand both when and how your employment can be terminated, whether by your employer or by you. Under Dutch law, employees are required to give at least one month’s notice before resigning. Employers may stipulate a longer notice period in the contract, but it must be no more than double the notice period required of the employee. Take note that a notice period may not exceed 6 months, as this would be contrary to Dutch law.
3.2. Overtime
Dutch law does not prescribe specific rules regarding compensation for overtime. As such, whether you are entitled to extra pay or time off in lieu depends on the terms of your employment contract or collective labour agreement (if applicable).
Some employers offer additional pay for overtime hours, while others compensate with additional leave days. Make sure your contract clearly outlines the employer’s policy on overtime compensation.
3.3. Holiday pay
Under Dutch law, employees are entitled to a minimum holiday allowance of 8% of their gross annual salary, accrued over the course of the year. The timing of the holiday pay can vary, as some employers include it in your monthly salary, while others pay it out annually, typically in May. Be sure to check your employment contract to confirm how and when this allowance is paid.
Do you have a non-compete clause in your employment contract? Read our article on non-compete clauses to determine whether you are legally bound thereby or not.
4. Non-compulsory employment benefits to negotiate
While not legally required, many Dutch employers offer additional benefits to attract and retain skilled employees. If they are not already included in your contract, it may be worthwhile to ask whether they are available and open for negotiation.
4.1. Travel reimbursement
Although this benefit is common in the Netherlands, it is not guaranteed. Some employers reimburse travel expenses for your daily commute, whether by car or public transport, while others do not. Considering the high costs of fuel and public transportation, it is advisable to confirm whether travel reimbursement is available and, if not, to discuss the possibility of including it in your contract.
4.2. Flexible working arrangements
Hybrid and remote working have become increasingly popular since the COVID-19 pandemic. However, not all employers are willing to adopt these models due to concerns about productivity or team dynamics. If you are in a phase of life where flexible working is important, such as balancing childcare responsibilities, it is worth raising this topic during contract negotiations.
4.3. Education reimbursement
For expats, learning Dutch can significantly ease integration into both the workplace and broader society. Many companies support their international employees by covering the costs of Dutch language courses. You may also want to enquire about funding for Dutch language courses or industry-specific training relevant to your role.
Once all negotiations have been finalised and the employment contract has been signed, be sure to keep a copy for your own records. If any questions arise regarding your employment terms, or if a dispute occurs between you and your employer, your signed contract will serve as the key reference point for resolving such issues.
Still unsure about certain clauses or have concerns that were not addressed in this article? Contact one of our (expat) lawyers to schedule a consultation. We are here to guide you before, during, and even after your employment in the Netherlands.
