topics
tools
Expatica countries
editor's choice

Religious services in English in the Netherlands

Maternity leave in the Netherlands

Expatica is seeking an editorial intern

Listing of international schools in the Netherlands

Guide to public transport in the Netherlands

Index Last Var.(%)
BEL 20 2281.62 -1.00
DAX 6741.58 -0.37
IBEX 30 8783.6 -0.88
CAC 40 3390.12 -1.10
FTSE 100 5882.31 -0.32
AEX 324.37 -0.60
DJIA 12862.23 1.23
Nasdaq 2905.66 1.61
FTSE MIB 16292.96 -0.89
TSX Composite 12577.28 0.19
ASX 4364.6 1.03
Hang seng 20709.94 -0.23
Straits Times 2940.1 0.76
ISEQ 20 506.43 -0.10
You are here: Home Employment Employment Information When expat contracts in the Netherlands go local

Employment & Trends

archive
Enlarge font Decrease font Text size


30/03/2010When expat contracts in the Netherlands go local

When expat contracts in the Netherlands go local Lawyer Sanne van Ruitenbeek advises expats on how to proceed should their employer propose changing their expat contract into a local contract, which usually means the loss of vital expat benefits.

The economic crisis has driven many employers in the Netherlands to amend their expat employment contracts into regular local contracts.

Take the case of American financial advisor *Paul who was offered a job in the Netherlands with a medium-sized firm about two years ago. His expat benefits included a housing allowance and two return flights home per year and his employment contract had a fixed term of three years.

A year after Paul had relocated with his wife and children, his employer informed him that the company needed to cut costs due to decreasing business, and, as he was the most expensive employee at the firm due to his expat benefits and, he should accept a local employment contract to help the company make cost reductions. No other cost-cutting measures were being taken.

Paul sought advice from a lawyer and learned that under Dutch law an employer requires the consent of the employee before being entitled to amend any employment conditions. Armed with this knowledge, Paul was able to negotiate with his employer on his employment and benefits and eventually came to a deal whereby his employment contract including benefits would be extended for three more years.  In return he would surrender a part of his housing allowance, which helped the employer to reduce costs.

“We notice that expats often are not aware of their rights” says Van Ruitenbeek, but Dutch law is very employee protective. An employer is in principle only allowed to amend an employment contract based on Dutch law if the employee consents with this amendment. A unilateral amendment of the contract by the employer without the consent of the employee is only possible in exceptional circumstances.”

Van Ruitenbeek advises expats whose employers propose taking away certain employment conditions to pose the question: Is Dutch law applicable to my employment contract? “Based on European regulations, the ground rule is that the law of the country where you usually perform your work is applicable to your employment. So if you usually carry out your work in the Netherlands, Dutch law is applicable to your employment contract. The fact that, for instance, UK law is declared applicable in your contract does not make you lose any protection under Dutch employment law. This is of course also a very important issue in conflicts about termination of the employment,” she says.

If Dutch law is applicable to an expat employment contract and the employee does not want to consent with a local employment contract, then the important question according to Van Ruitenbeek is: Are exceptional circumstances applicable which gives your employer the right to amend your employment conditions unilaterally?

“Exceptional circumstances could be applicable if your employer has severe business reasons to amend your employment conditions. Severe business reasons could be changes in tax laws, which make the expat benefits much more expensive for the employer. Court’s are however very reluctant in accepting unilateral amendments of employment conditions. Expats do therefore not just have to accept a local contract,” she says.

“If an employer wants to take away certain employment conditions, seek out a lawyer who is specialised in Dutch and international employment law and find out what your rights are,” advises Van Ruitenbeek.

Points to note:
  • Your employer should respect Dutch and international law even though your contract may state otherwise.
  • In principle it is not possible for an employer to amend your employment conditions without your consent.
  • Do not agree with any changes to your employment conditions before obtaining advice from an expert.


By knowing your rights you will be in a better position to negotiate a new contract.

* Real name witheld as the subject prefers to remain anonymous.

Sanne van Ruitenbeek, is attorney at law at Pallas Attorneys at Law in Amsterdam, the Netherlands.
Pallas Attorneys at Law specialises in Dutch and international employment law.

For more information visit Expatica's A-Z listings.


4 reactions to this article

ALAN DOWSON posted: 2010-03-30 10:53:17

my employer in the netherland insisted i sign a contract which state that i cannot move to a similar job within 6 months of leaving their employment.
how legal is this

Sanne van Ruitenbeek posted: 2010-03-30 13:40:53

Dear Alan, I assume you are referring to a non-competition clause. Such clause is in principle valid under Dutch law. However, the interests of the employee should not be damaged in a disproportionate way. This depends on the circumstances of the case.

EditorNL posted: 2010-03-30 16:31:41

Just to let readers know that Sanne van Ruitenbeek is now an Expatica legal expert. You can ask her questions at our Ask the Expert section:

http://www.expatica.com/nl/ask_expert.html

(Under the 'Legal' category.)

Best,
EditorNL

Ian MacBeath posted: 2010-05-04 12:23:46

I have been an expat in Belgium for the past 3 years. My company is offering me a renewal of the expat contract, except that this time around, they want to remove the housing allowance. Is the situation in Belgium similar to that in the Netherlands? Does the law protect me in any way against this modification?

Add a comment

General rating: Not rated yet

Rate article:    Add my rating


4 reactions to this article

ALAN DOWSON posted: 2010-03-30 10:53:17

my employer in the netherland insisted i sign a contract which state that i cannot move to a similar job within 6 months of leaving their employment.
how legal is this

Sanne van Ruitenbeek posted: 2010-03-30 13:40:53

Dear Alan, I assume you are referring to a non-competition clause. Such clause is in principle valid under Dutch law. However, the interests of the employee should not be damaged in a disproportionate way. This depends on the circumstances of the case.

EditorNL posted: 2010-03-30 16:31:41

Just to let readers know that Sanne van Ruitenbeek is now an Expatica legal expert. You can ask her questions at our Ask the Expert section:

http://www.expatica.com/nl/ask_expert.html

(Under the 'Legal' category.)

Best,
EditorNL

Ian MacBeath posted: 2010-05-04 12:23:46

I have been an expat in Belgium for the past 3 years. My company is offering me a renewal of the expat contract, except that this time around, they want to remove the housing allowance. Is the situation in Belgium similar to that in the Netherlands? Does the law protect me in any way against this modification?

Add a comment

Looking for a job?

Browse all jobs
Employment essentials
Employment expert Q&A
ask your question
Discussion Forums

Healthcare in the Netherlands

Insurance making you pay for the past!

Employment in the Netherlands

Any jobs for english speaking people with no special skills?

Student Forum The Netherlands

Native English speaking students in Utrecht - Employment.

Groups & Clubs in the Netherlands

Amersfoort Expats Social Group

Indians in the Netherlands

Relocating to Netherlands from US

participate in the forums

Inside Expatica
Setting up home in the Netherlands

Setting up home in the Netherlands

A guide to telephone, internet and television along with utility services water, electricity and gas in the Netherlands.

Dutch immigration and residency regulations

Dutch immigration and residency regulations

Lost in the Dutch immigration system? Look no further than this guide compiled for our Survival Guide 2012.

A brief introduction to the Netherlands

A brief introduction to the Netherlands

Expatica offers a whistle-stop tour of life in the modern Netherlands.

Giving birth in the Netherlands

Giving birth in the Netherlands

The challenges and benefits of the maternity system in the Netherlands and how it differs to other countries.