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The Netherlands, celebrated for its picturesque canals, innovative spirit, and a thriving international business environment, stands as an appealing prospect for businesses eyeing global expansion in a country that seamlessly combines historic charm with cutting-edge technology and a strategic geographical position.
Creating a worldwide workforce is a continuous process that extends beyond a contract.
TCWGlobal surpasses the typical employer of record (EOR) by ensuring that your team receives personalized attention, ranging from smooth payrolling management to customized benefits based on your specific needs and location.
Fixed-term contracts are permitted in the Netherlands, but cannot be renewed more than three times and cannot exceed three years cumulatively. If a Worker has been engaged on a fixed-term contract for six months or more, they are entitled to one month's advance notice before the end of the fixed term as to whether the contract will be renewed as well as the conditions upon which the contract may renewed. If such notice is not provided, the Worker is owed an additional month's salary.
Probationary periods are permitted if the contract will be longer than six months. In such cases, permanent contracts may include a probationary period of up to two months (one month for fixed-term contracts)
Workers recognize 10 paid public holidays in the Netherlands.
Workers are entitled to paid vacation equal to four times the number of working hours per week (e.g. 20 days in the case of a full-time job) in addition to a “holiday allowance” equal to 8% of the Worker’s gross salary. Any accrued but unused leave above the annual entitlement must be paid out upon termination.
Workers are not required to work if ill or injured. Employers must continue to pay injured or ill workers 70% of regular wages (subject to applicable caps) for a period of two years. Many employers pay 100% of the Worker’s wages for the first 52 weeks of illness and 70% for the subsequent 52 weeks. Employers are also required to follow a reintegration process with the Worker. If the Worker is still injured or ill at the end of the 104-week period, the employment agreement may end.
Generally, working hours are 8 hours per day, and 40 hours per week. However, the maximum working hours per week are set to 60 hours but a worker cannot work 60 hours every week. If a worker for more than 5.5 hours, they are entitled to a break of at least 30 minutes.
There is no statutory mandated overtime.
Except in rare circumstances, one month’s notice and reasonable grounds are required to terminate a Worker within their first five years of service. The termination process in the Netherlands is very specific. It requires court proceedings or obtaining a dismissal permit. Alternatively, the employer and the Worker can mutually agree to terminate an employment agreement. Workers may be entitled to a transitional allowance or reasonable compensation.
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.
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