Dutch labour law and your contract of employment

Dutch labour law and your contract of employment

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Dutch labour laws regarding your contract of employment in the Netherlands are numerous; here are some expert tips on negotiating your employment contract and Dutch minimum wage.

The laws covering employment in the Netherlands are many and various. Your personal contract of employment will determine your pay and specific conditions. Dutch employment law covers key areas such as trial periods, Netherlands vacation, notice and dismissal, the Dutch minimum wage, health and safety and equal treatment.

The Dutch labour law system for dismissal is particularly unusual in being so protective of employees: in most cases the employer needs permission from the UWV WERKbedrijf or the court to fire you.

Useful information regarding working practices, your contract of employment, Dutch labour law and the Netherlands' minimum wage can be found on the Ministry of Social Affairs and Employment website (www.szw.nl) or the UWV WERKbedrijf website (www.werk.nl).

If you want to assess an employment contract offer, you can check the market rate for your salary or calculate bruto/netto rates (before/after tax and social security deductions) at www.loonwijzer.nl. It is standard practice in the Netherlands to get extra wages (usually 8 percent of your yearly salary) as a ‘holiday allowance’ (normally paid in May) plus four weeks of paid leave. Read about Netherlands vacation days.

There are numerous aspects to Dutch labour law, however, which are explained below to help you negotiate your contract of employment in the Netherlands.

Dutch labour law

Dutch labour law overview

Sanne van Ruitenbeek of Pallas Advocaten provides the following important information about the Dutch employment law:

  • If you work in the Netherlands, Dutch labour law is partly and often fully applicable to your employment, even if the law of another country is declared applicable in your contract of employment.

  • The number of succeeding employment contracts for a fixed term is limited to three, but can also not exceed a limit of two years for total duration of fixed term contracts. If the duration of the contracts or the number of fixed contracts exceeds either legal limit, the contract of employment will automatically become a permanent contract for an unlimited term. An interval of six months between contracts, however, breaks the chain of consecutive temporary contracts.

  • If the contract is for less than two years, the trial period cannot be longer than one month. The maximum duration of a trial period is two months. Trial periods in an employment contract for less than six months are invalid. During the trial period, both employer and employee are allowed to terminate the employment contract with immediate effect.
  • The notice period for the employee is usually one month. If the notice period for the employee to end a contract of employment is extended, the notice period for the employer should be double the notice period of the employee.

  • A permanent contract can only be terminated by the employer with consent of the employee, the labour office (UWV WERKbedrijf) or the Court. The court and labour offices assess whether there are grounds for a valid termination. If an employer gives notice of termination without obtaining prior approval, the employee could nullify the termination. This rule is not applicable in the case of summary dismissal (such as fraud or theft by the employee). Courts are, however, very reluctant about accepting summary dismissals under Dutch labour law. It is therefore very important to contact an employment lawyer immediately if you are fired on the spot.

  • According to Dutch employment law, the legal minimum number of holidays per year is four times the weekly working time. This means 20 holidays in the case of fulltime employees working five-day weeks, although it is common practice for fulltime employees to be granted 25 holiday days per year, on top of Dutch public holidays. As per the Dutch labour law, there is an expiration date of six months for taking the legal minimum number of holidays. Employees therefore must take all their holidays within six months after the year in which the holidays were accrued. Should the employee not take the holidays on time, the holidays will lapse without any compensation or payment. The expiration date of six months is not applicable to the holidays that the employee is entitled to on top of the legal minimum number of holidays. These extra holidays will not lapse until after a period of five years. Read about Netherlands vacation law.

Labour standards NL: Collective Labour Agreements (CAOs)

This is a written agreement covering working conditions and benefits, which is drawn up by employers, employers’ organisations and employee organisations (such as unions). A CAO operates at company or industry sector level and the provisions (number of holidays, for example) are often more generous than statutory requirements. It should state in your contract of employment whether a CAO is applicable; you don’t have to be a member of a union to benefit. If no CAO applies – all must be registered – you will need to negotiate your own terms and conditions. The largest trade union federation in the Netherlands is the FNV (www.fnv.nl).

Dutch employment law

Negotiating your employment contract: minimum wage Netherlands

The Netherlands' minimum wage, including the minimum wage in Amsterdam, depends on the age of the employee. Amounts are controlled by Dutch labour law and are reviewed twice a year on 1 January and 1 July.

As of 1 July 2016, the current gross Netherlands minimum wage amounts for a full working week, which can range between 36 to 40 hours weekly depending on the working agreement. There is no net minimum wage in the Netherlands as employers pay out differing social insurance contributions and taxes for individual employees.

Employee age

Monthly Dutch minimum wage

Weekly Dutch minimum wage

Daily Dutch minimum wage

23 years and older EUR 1,537.20 EUR 354.75 EUR 70.95
22 years old EUR 1,307.60 EUR 301.55 EUR 60.31
21 years old EUR 1,114.45 EUR 257.20 EUR 51.44
20 years old EUR 945.40 EUR 218.15 EUR 43.63
19 years old EUR 807.05 EUR 186.25 EUR 37.25
18 years old EUR 699.45 EUR 161.40 EUR 32.28
17 years old EUR 607.20 EUR 140.15 EUR 28.03
16 years old EUR 530.35 EUR 122.40 EUR 24.48
15 years old EUR 461.15 EUR 106.45 EUR 21.29

Minimum wage in Netherlands: Foreign employees

The Netherlands' minimum wage for foreigners who work under a Dutch work permit is set at the same rate as workers aged 23 years and older, even if the employee is younger than 23 years old and only working part-time. A foreign worker can only be issued a Dutch work permit if their employer pays them at least the full Netherlands minimum wage.

In terms of negotiating your salary, the Dutch university and college guide Keuze Studiegids analysed which degrees typically achieved the highest wages in the Netherlands. Reportedly dentistry was the most lucrative subject to study in the Netherlands, while graduates of art history and cultural studies, cultural anthropology, environmental sciences and international law were the least likely to find work with a good wage; for example, the report found that some 15 percent of art and culture graduates made less than EUR 900 a month, while many international law graduates started at NGOs where wages were structurally low. For new graduates, however, the report found they typically find it easiest to get a job with a high salary.

Changing jobs: Your employment contract and Dutch permit

 Any changes in your work or partnership status must be reported to the IND within four weeks. You or your ‘sponsor’ (such as an employer) can be penalised by the IND if changes aren’t reported, including contributions to repatriation costs.

Contract of employment: Minimum wage NetherlandsIf you change jobs, you don’t necessarily need a new residence permit, but the same rules will apply as for the first permit you were granted. So if you worked with a separate work permit, your new employer needs a new work permit, too, for your contract of employment.

If you worked as a highly skilled migrant, your new employer needs to be eligible to apply under the highly skilled migrant scheme, and will need to prove to the IND that you still meet the requirements of the highly skilled migrant scheme, for example, sending in your contract of employment to show you earn the required salary.

If you are applying to extend a residence or work permit, your circumstances will be assessed again in reference to the original application. The main exception is that after three years working on any given residence permit that allowed you to work (such as a partner's permit or employee single permit), you no longer need a separate work permit to sign an contract of employment.

Highly skilled migrants can also change their purpose of stay into ‘labour’ after three years, which allows them to work without a work permit and without meeting the requirements for the highly skilled migrant scheme either.

Unemployment benefits (WW) Netherlands

Your employment history determines the amount and duration of unemployment benefit payments. For the first two months you get 75 percent of your last earned salary, and thereafter 70 percent. You must have worked 26 out of the previous 36 weeks before the first day of terminating your contract of employment (or less for those not in regular employment), although benefits can be restricted if other benefits are in operation. Read more in our guide to Dutch social security.

Social security in the Netherlands 

Typically all working residents in the Netherlands must pay social security. The Dutch social security system is one of the most comprehensive in Europe but access to the welfare system is becoming more restrictive.

There are three strands:

  • National Insurance administered by the social insurance bank (www.svb.nl), which includes old age pension (AOW) and child benefit (AKW);
  • Employee Insurance administered by UWV (www.uwv.nl), including unemployment benefit (WW, see above), long-term disability (WIA) and sickness (ZW);
  • Social Assistance administered by municipalities (www.rechtopbijstand.nl).

Specific conditions apply to each benefit, and you need to check that your residence rights are not affected if you apply for benefits. Your official documents will need to be in good order. Consult the Ministry of Social Affairs and Welfare website (www.szw.nl) for more information. For details on your employee benefits and social security payments, read our guide to Dutch social security.

Click to go to the top of our guide to Dutch labour law, contract of employment and Netherlands' minimum wage


Sanne van Ruitenbeek, Pallas Attorneys-at-law / Expatica

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Updated 2016.

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4 Comments To This Article

  • SallandStorage posted:

    on 8th June 2016, 10:39:49 - Reply

    Nice Blog !!
  • Emma posted:

    on 2nd June 2016, 11:29:31 - Reply

    we want to terminate the permanent contract with one employee which is not responsible for his work,we settle one deal with him by the lawer,and I want to know what we need to do in check-out procedure

    [Moderator's note: You can also post questions on our Ask the Expert free service.]

  • Jose posted:

    on 12th February 2016, 13:52:03 - Reply

    Is right that to work in Netherland you need a house contract with your name? I'm living with my girlfriend who signed the contract not me. There will be any problem?

    [Moderator's note: You can also post questions on our Ask the Expert free service.]

  • GeorgeMcGraw posted:

    on 7th October 2015, 13:49:33 - Reply

    No matter the place I firmly believe that Labour laws everywhere should be strong to give them their rights.