Employment Contracts in the Netherlands: All You Need to Know

So you got a job offer in the Netherlands, and now you are reviewing your contract. As you probably know, the Netherlands has strong protections for employees, emphasising work-life balance, fair wages, and clear terms of employment. 

Employment contracts (arbeidscontracten) can take different forms and are governed by Dutch labour laws. Whether you're starting a new role or contemplating moving for work, understanding these contracts is important because there can be some significant differences compared to other EU countries.

So, what basic information do you need? I structured all you need to know here.

Types of Employment Contracts

In the Netherlands, employment contracts can be verbal or written, but a written contract is highly recommended for clarity.

The main contract types:

• Permanent contracts (indefinite period): These offer long-term security with no fixed end date.

• Fixed-term contracts (temporary): These have a specific duration, such as for projects or seasonal work. Employers can offer up to 3 consecutive fixed-term contracts or a total of 3 years before a permanent contract must be provided, unless a Collective Labour Agreement (CAO) specifies otherwise. Fixed-term contracts of 6 months or longer require the employer to give written notice at least 1 month before the end date about renewal intentions and terms.

• Agency or payroll contracts: Common for expats and flexible roles, these involve a recruitment agency as the legal employer (acting as a middleman between an employee and an employer). Contracts follow a phase system to increase stability: Phase A (up to 52 weeks, flexible), Phase B (up to 6 contracts over 3 years), and Phase C (permanent with the agency). These allow for up to 4 years of temporary work.

• On-call or zero-hours contracts: These offer flexibility with no fixed hours. Employees are called in as needed, with a minimum of 3 hours' pay per shift. They fall under broader temporary rules.

• Min-max contracts: A type of on-call contract guaranteeing a minimum number of hours while allowing up to a maximum. The "3x3 Rule" limits temporary contracts to 3 within three years before requiring permanence.

If you are a non-EU citizen, and your employer is a sponsor company, you’ll probably sign a 1-year fixed-term contract with a 1-month probation period as your first contract.

What Elements Must Your Contract Have?

Employers must provide a written statement of key employment conditions within 1 month of the start of employment. 

The contract must include:

• Names and residences of the employer and the employee.

• Work location(s), job title, and nature of work

• Start date and contract duration (if fixed term)

• Type of contract (permanent, temporary, payroll)

• Working hours per day/week, overtime arrangements, and shift swapping

• Salary details - amount, components, payment method, and timing

• Pension arrangements (if applicable)

• Notice period and termination procedures

• Applicable CAO (if any)

• Holiday and leave entitlements, including calculation methods

• Training entitlements and any ban on ancillary activities (with justification)

Contracts must comply with equal treatment laws that prohibit discrimination based on gender, age, race, or other grounds.

Probation Period

The probation (trial) period allows both parties to terminate the contract immediately without reason. It must be agreed in writing and applies only to contracts longer than 6 months:

• Probation period of up to 1 month for fixed-term contracts over 6 months but under 2 years, or without a fixed end date

• Probation period of up to 2 months for permanent contracts or fixed-term contracts over 2 years

Short contracts (6 months or less) cannot have a probation period. If an employee falls ill during probation, the period isn't extended. Reasons for termination must be provided in writing if requested.

Working Hours

The Working Hours Act regulates working hours to ensure employees' health and safety. Employees aged 18+ can work up to 12 hours per day and 60 hours per week, but not every week—averages apply over more extended periods. Employers must provide breaks, record hours, and give 28 days' notice for schedule changes (unless agreed otherwise). Special rules cover night shifts (max 10 hours, with limits on frequency), on-call duty, and standby.

Employees can request flexible adjustments after 6 months of employment (or 26 weeks for agency workers), such as more/fewer hours or remote work, which employers must approve unless it causes serious business issues. Sector-specific exceptions apply to roles (e.g., healthcare, transport).

Salaries and Minimum Wage

Wages must be at least the statutory minimum, adjusted twice yearly (January and July). As of the first half of 2025, it's €14.06 gross per hour for those 21+. Wages include base pay plus allowances for shifts or overtime. Underpayment can lead to fines.

Holidays, Leave, and Holiday Pay

Employees accrue at least 4 times their weekly hours in statutory paid leave annually (160 hours for 40-hour weeks). Statutory leave expires 6 months after accrual year-end unless unable to take it; non-statutory leave expires after 5 years. Unused leave is paid out on termination. Public holidays aren't mandatory off days unless specified in the CAO or contract. The Dutch have a Holiday pay of at least 8% of the gross annual salary, paid yearly (usually in May/June). On termination, it's paid with final salary.

Other leaves include maternity (16 weeks), parental (up to 26 weeks per child under 8 years), sick (up to 2 years at 70% pay), and carer’s leave.

Benefits

Beyond basics, benefits promote work-life balance. Legally required ("must-haves") include minimum wage, 20+ vacation days, 8% holiday pay, sick/maternity/parental leave, and social insurances.

Common "nice-to-haves" include travel reimbursements, 13th-month bonuses, extra days off, bonuses, shift allowances, company lunches, hybrid work, and education funding.

"Lucky-to-haves" cover company cars/phones or health insurance discounts.

Notice Periods

For fixed-term contracts (6+ months), employers must notify renewal intentions 1 month before the end of the contract. For permanent or early termination, notice periods vary by tenure: 1 month for under 5 years, up to 4 months for 15+ years (unless CAO differs). Employees give 1 month’s notice.

Termination and Dismissal

To fire you, the employer must have valid reasons (poor performance, redundancy, misconduct). If agreed, use mutual consent or termination with consent, with a 14-day rethink period. If not, seek UWV permission for economic reasons or go to court for other reasons. Notice periods apply, and transition payments (severance) may be due. Ill employees can't be dismissed for 2 years (except probation/bankruptcy). Collective redundancies (20+ in three months) require UWV notification. Invalid dismissals continue the contract with pay.

Collective Labour Agreements (CAO)

In the Netherlands, CAOs are sector- or company-wide pacts between employers and unions, covering wages, hours, notice, pensions, and more. They apply if binding, via membership, or voluntarily. Minimum CAOs allow favourable deviations; standard ones don't. They prevail over individual contracts and can't undercut the law.

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What does All This mean to You As an Expat or non-EU citizen?

When signing an employment contract in the Netherlands as an expat or non-EU citizen, it's crucial to ensure compliance with Dutch labour laws, and especially with immigration requirements. Although Dutch employment law emphasises fairness, non-EU citizens face challenges related to work permits and residency.

Here are the key aspects to pay attention to, but always consult a legal expert for personalised advice:

• Non-EU citizens need a combined work and residence permit (GVVA) or a highly skilled migrant visa (kennismigrantenregeling) to work legally. Your employer must act as a recognised sponsor with the Immigration and Naturalisation Service (IND) and handle the application.

• You need to meet salary thresholds: For highly skilled migrants in 2025, the gross monthly salary (excluding 8% holiday allowance) must be at least €5,331 (age 30+), €3,909 (under 30), or €2,801 (recent graduates). If the salary is below the required amount, the visa could be denied, invalidating the contract.

• Consider tax implications: Ask about the 30% tax ruling in the contract if eligible.

• Contract must align with permit validity. Any changes (job role, hours, employer, irregularity in salary payments) must be reported to the IND within 4 weeks, or you risk fines, permit revocation, or deportation.

• Right after signing, register immediately: obtain a BSN (citizen service number) by registering with the local municipality within 5 days if staying for more than 4 months. You'll also need Dutch health insurance and sufficient funds for self-support.

As you embark on your Dutch adventure, whether chasing tulip fields or tech hubs in Amsterdam, remember that a solid employment contract is your holy grail to thriving here. By scrutinising those visa ties, salary thresholds, and protective clauses, you're not just signing paper, you're securing a balanced life with generous leave, fair pay, and work-life harmony.

I wish you an amazing start in the Netherlands!

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If this resonates and you’re ready to think bigger about your next chapter, let’s talk. Sometimes, a single conversation can change everything.

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