Table of Contents
Introduction
Key Considerations for Employing in the Netherlands
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in the Netherlands requires compliance with strict labor laws, payroll regulations, and mandatory benefits. Omnipresent’s Employer of Record (EOR) service ensures that businesses meet all local employment obligations in the Netherlands.
2. Key Considerations for Employing in the Netherlands
Currency: Euro (€)
Language: Dutch
Employer Costs: High (~35% of salary)
Termination Complexity: Hard
Onboarding Timeline: Approximately 17 calendar days
Payroll Frequency: Monthly
3. Benefits
Types of Benefits Offered
Mandatory Benefits: Public healthcare, pension contributions, disability insurance, workers’ compensation.
Supplementary Benefits: Private healthcare, additional pension schemes, life & illness insurance.
Healthcare
Public healthcare (ZVW & WLZ) is mandatory.
Employees must take out private health insurance by law.
Many employers contribute 50% or a fixed amount to private insurance costs.
Retirement
State Pension (AOW): Funded by employee social security contributions.
Employer Pension Contributions: Required under an Adequate Pension Plan (15.7% in 2023).
4. Employment Contracts
Contract Types
Indefinite-term contracts
Fixed-term contracts (max 36 months, up to 3 renewals)
Part-time contracts
Requirements
Written employment contracts are required.
Language: English
Signature Requirements: Digital (Qualified Electronic Signatures - QES).
Backdating: Not permitted under Omnipresent’s policy.
Probation Period
Indefinite-term or contracts ≥2 years: Max 2 months.
Fixed-term contracts (6 months - 2 years): Max 1 month.
Fixed-term contracts <6 months: No probation allowed.
Probationary periods provide lower termination costs and reduced dispute risks.
Contract Customisation
Optional clauses for customization, such as extra-legal sick days or unlimited time off.
Certain elements cannot be customized (e.g., restrictive covenants, overtime policies).
5. Onboarding
Timeline
The onboarding process in the Netherlands typically takes 17 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Registration & Approvals
Employees must complete a New Starter Checklist before payroll registration.
Immigration & Visas
Omnipresent can sponsor EU Blue Cards for qualifying employees.
Right-to-Work Verification
Employers must conduct right-to-work (RTW) checks.
New highly skilled expats may qualify for a 30% tax ruling (reduction in taxable income).
Employee Transfers from Another EOR
Previous service can be recognized in the new contract.
6. Leaves
Leave Entitlements
Annual Leave: Minimum 20 working days (excluding public holidays).
Market standard: 24-25 days.
Statutory leave must be used within 6 months, while additional leave may carry over up to 5 years.
Employers must proactively inform employees of expiring leave.
Maternity & Paternity Leave
Maternity Leave: 16 weeks (fully paid, capped at statutory wage).
Paternity Leave:
1 week fully paid.
5 additional weeks (paid at 70% of salary by UWV).
Sick Leave
Employers must pay sick leave for up to 2 years (104 weeks).
First year: Minimum 70% of salary (must meet minimum wage).
Second year: 70% of salary (employer discretion to pay more).
It is common practice to pay 100% for the first year.
Public Holidays
11 public holidays, including:
New Year's Day, Good Friday, Easter Sunday & Monday, King's Day, Liberation Day, Ascension Day, Pentecost, Whit Monday, Christmas, Boxing Day.
No substitute holiday if a public holiday falls on a weekend.
7. Payroll & Taxes
Payroll Cycle
Frequency: Monthly
Cut-off Date: 6th of each month.
Payment Date: Last working day of the month.
Mandatory Vacation Allowance:
8% of annual salary paid across 12 months.
Not required for wages exceeding 3x minimum salary.
Compensation
Minimum wage (2024): €13.27 per hour.
Hourly wages are not supported by Omnipresent.
Standard Work Schedule
36-40 hours per week (Monday-Friday).
Employer Costs
Estimated up to 35% of salary. Use the OmniCalculator for a detailed breakdown.
8. Termination Process
Notice Period
Varies by service length:
<5 years: 1 month.
5-10 years: 2 months.
10-15 years: 3 months.
15+ years: 4 months.
Contractual notice periods can exceed statutory requirements.
Termination Grounds
Strict labor protections apply.
Permitted termination reasons:
Economic grounds (via UWV approval).
Long-term illness (104+ weeks, via UWV approval).
Poor performance (via District Court approval).
Culpable acts, disturbed relationships, and other exceptional cases.
Severance Pay
Mandatory severance (transitievergoeding):
1/3 monthly salary per year worked.
Max €89,000 or 1 year’s salary (whichever is higher).
Severance applies even for probationary and fixed-term dismissals.
9. Invoice Schedule
Initial Fees
Setup Fees: Due upon signing Terms.
Deposit: Payable when the local employment contract is ready for signature.
First Salary Prepayment: Invoiced on the first day of employment.
Ongoing Monthly Payments
Labour costs invoiced monthly in arrears after payroll calculations.
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.