How to hire employees in the Netherlands (2026)

Before making an offer, decide on the contract type (fixed-term or indefinite), working hours, salary, and benefits. Dutch employees expect transparency on total compensation, including holiday allowance (8% of salary), pension, and any commuting or home-working allowances. See our guide to employee benefits in the Netherlands for what is expected.

Key terms to establish early include the gross annual salary, the number of holiday days (25 is the competitive standard), the pension arrangement, and whether the 30% ruling will apply. Dutch candidates compare total packages, not just base salary.

Dutch employment contracts must be provided in writing within one week of the start date. The contract must include the names and addresses of employer and employee, job title and duties, start date, duration (if fixed-term), salary and payment frequency, working hours, holiday entitlement, notice periods, pension details (if applicable), and any applicable collective labour agreement (CLA/CAO).

Fixed-term vs indefinite contracts. The chain rule (ketenregeling) limits employers to three fixed-term contracts within 36 months. If either limit is exceeded, the contract automatically converts to indefinite. The chain resets after a gap of more than six months.

Probation periods. A probation period (proeftijd) is only permitted for contracts of more than six months. For contracts of six months to two years, the maximum probation period is one month. For indefinite contracts or contracts of two years or more, it is two months. Both parties can terminate immediately during the probation period without notice or compensation.

EU/EEA and Swiss nationals can work in the Netherlands without a work permit. For nationals of other countries, you will need to arrange a work permit or residence permit before they can start.

The most common route for skilled international hires is the Highly Skilled Migrant (Kennismigrant) permit. To use this route, the employer must be a recognised sponsor (erkend referent) with the IND (Immigration and Naturalisation Service). Salary thresholds for 2026 are €5,942 gross per month (excluding holiday allowance) for employees aged 30 and over, and €4,357 for those under 30.

If you are using an EOR, the EOR’s Dutch entity may hold recognised sponsor status, allowing it to sponsor work permits on your behalf. Confirm this with your provider before making an offer to a non-EU candidate.

If hiring through your own entity, you must register the employee with the Belastingdienst, set up payroll, and ensure the employee has a BSN (Citizen Service Number). The employee must also arrange mandatory health insurance (basisverzekering) within four months of becoming a Dutch resident.

If hiring through an EOR, the provider handles all registrations and payroll setup. You focus on the operational onboarding: team introductions, equipment, systems access, and role-specific training.

Dutch payroll involves wage tax (loonbelasting), national insurance premiums, employee insurance contributions (employer-paid), and health insurance contributions. Payroll is typically run monthly, with returns filed to the Belastingdienst each period. For a full explanation of Dutch payroll mechanics, see our guide to how payroll works in the Netherlands.

Employer notice periods depend on length of service. Less than five years requires one month. Five to ten years requires two months. Ten to fifteen years requires three months. Over fifteen years requires four months. The employee’s statutory notice period is one month. These can be extended by contract, but the employer’s notice period must always be at least double the employee’s.

Dismissing an employee in the Netherlands is not as simple as giving notice. Depending on the grounds, the employer must either apply for permission from the UWV (for redundancy or long-term illness after two years) or petition the court (for performance, conduct, or other personal grounds). Mutual termination by settlement agreement (vaststellingsovereenkomst) is common and often preferred. The employee has a 14-day cooling-off period to revoke a settlement agreement.

Companies with 50 or more employees in the Netherlands must establish a works council (ondernemingsraad). The works council has consent rights on matters like working hours, leave policies, and safety. It has advisory rights on major business decisions like reorganisations and mergers. For companies growing towards this threshold, early awareness helps avoid compliance issues.

Non-competition clauses (concurrentiebeding) are permitted in indefinite contracts but must be reasonable in scope, geography, and duration. In fixed-term contracts, non-competition clauses are only valid if the employer can demonstrate specific business interests that justify the restriction. Courts regularly invalidate overly broad clauses.

Many sectors in the Netherlands have mandatory collective labour agreements that apply to all employers in that sector, regardless of whether the employer is a signatory. If your employee falls under a mandatory CLA, it overrides any less favourable terms in the individual employment contract. Common CLA provisions include minimum salary scales, pension schemes, additional holiday days, and sick pay supplements. Check with your EOR or legal advisor whether a CLA applies to your situation.