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Employment
Agreement in The Netherlands

Employment Agreement based on Dutch law

In order to employ staff in The Netherlands, it's important to consider the Dutch labor laws. Therefore the Dutch employment agreements should also be drafted by on Dutch law, and our Legal team can assist you with this.

The employment contract contains the agreements between the Dutch company and it’s employee. An employment contract is in force when an employee is employed by an employer and receives wages.

INCO can assist in drafting or the evaluation of Employment Agreements. INCO charges a fixed fee of 450 EUR ex VAT, for a new Employment Agreement, or Management Agreement. 

Content of the employment contract

As a Dutch employer, you must provide a number of details to the employee in writing within 1 month of your employment. This data includes:

  • the name and place of residence of you and your employer;

  • the place or places where you work;

  • your position or the type of work you do;

  • the date of employment;

  • the duration of the contract (with a temporary contract);

  • how many hours you work (per day or per week);

  • the amount of your salary and when it will be paid;

  • (possibly) the length of your probationary period;

  • the amount of the holiday allowance;

  • the number of vacation days;

  • the duration of the cancellation period;

  • (possibly) your pension scheme;

  • (possibly) your non-competition clause;

  • your collective labor agreement (CAO) if applicable.

When does an employment contract come into force?

Even if an employment contract has formally never been drafted or signed, it can still be considered to be effectively in force. 

An employment relationship/contract is considered to have been in force once the following scenarios occur:

  • The employee is employed by the employer. The employer can give the employee instructions and determine the work content.

  • The employee receives wages for the work performed. This wage usually consists of money. The employer may also pay wages, insofar as they are above the minimum wage, (in part) in kind. For example in the form of meals or 'board and lodging'. Shares can also be included in shares and options or the profits made with them.

  • The employee can carry out the work for which he/she has been hired.

INCO Business Toolkit

YOUR BUSINESS TOOLKIT

FREE ACCESS TO ALL THE THINGS YOU NEED TO KNOW

Our experts have combined their knowledge and strengths to create a tool we call the Business Toolkit. 

The Business Toolkit will help you and entrepreneurs from around the globe to truly understand the Dutch market, regulations and laws. And will enable you to take a deep-dive into the topics displayed below. 

This way you will easily get up to speed with our Company formation process, Dutch Tax & Accounting and our corporate services. 

Make sure to check out our handy checklists, explainer video's and extensively written Whitepapers too!