https://jacksonandfrank.com/netherlands
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Netherland

Hire and pay employees in

The Netherlands, hassle-free

Streamline your international hiring in the Netherlands with our expert support.

We understand the complexities of navigating local laws, intricate tax systems, and global payroll management. Our comprehensive solution, encompassing over 150 countries, ensures a smooth and efficient experience for your international expansion.


Benefit from our expedited onboarding process, averaging just 2 days in the Netherlands.

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Currency

Currency

Euro (EUR)

Currency

Timezone

GMT+1

Capital

Capital

Amsterdam

Language

Official Language

Dutch

Payroll

Payroll Cycle

Monthly



Streamlining Workforce Operations: Simplified Employee Management in the Netherlands

Revolutionize your employee onboarding, payment, and management strategy in the Netherlands effortlessly. Traditionally, establishing a local presence demanded a physical office, registered address, and a local bank account—a process intertwined with navigating the complexities of regional benefits, payroll intricacies, tax regulations, and HR laws, often extending over months.

Enter a new era of efficiency. Streamline and expedite your hiring process in the Netherlands with a solution designed for speed, ease, and compliance. Experience a paradigm shift as we automate tax document collection, payroll procedures, benefits administration, and more. For your existing workforce, entrust us with the end-to-end management of your payroll operations. Redefine your employee management journey without compromising on speed or precision.

Netherland Map


Empower Your Team with Swift, Localized Benefits in the Netherlands!


Public Health

Public Health

Social Health

Social Health

Unemployment Insurance

Unemployment Insurance

Dutch Health Insurance

Dutch Health Insurance


Our comprehensive guide to streamlining the hiring process at Jackson and Frank.

Explore the tabs below to gain in-depth insights into the process of hiring an employee at Jackson and Frank in the Netherlands.


Leave Policy
Termination
Statutory time off
Onboarding
Additional Info
Maternity Leave

Expecting mothers who are employed have the right to avail themselves of up to 16 weeks of paid maternity leave, which includes a mandatory 4-week leave period. In the case of multiple births, employees are entitled to take up to 20 weeks of paid maternity leave. Typically, a duration of 4-6 weeks of maternity leave is taken before the anticipated childbirth date. Maternity leave can be extended if the female employee remains unable to work due to her pregnancy or childbirth. Employers cover the costs of time off for antenatal appointments.

Maternity leave is remunerated by the employer at 100% of the gross salary, up to a maximum of 100% of the maximum daily earnings. Employers can seek reimbursement of the statutory amount through the relevant authorities, such as the Dutch Employee Insurance Agency (UWV). There is no minimum service period requirement for maternity leave.

Paternity Leave

The partner of an employee who has recently become a parent is entitled to paid leave equivalent to their weekly working hours (5 working days in the case of full-time employment). This paid leave should be utilized within the initial four weeks following the childbirth. Additionally, the employee has the right to take "short absence leave" for the actual birth itself.

The employer covers the expenses of birth leave. In the first six months post-birth, there is an extra leave period of 5 weeks for full-time employees ("additional birth leave"). This particular leave is unpaid by the employer. An employee opting for this additional leave qualifies for state benefits, comprising 70% of their last earned salary (capped at 70% of the maximum daily wage), provided by the Dutch Employee Insurance Agency (UWV).

Parental Leave

In addition to maternal and paternal leave, parents with children under the age of 8 years old have the right to parental leave, calculated at 26 times their weekly working hours for each child. The initial 9 weeks are remunerated, while the subsequent 17 weeks are unpaid. The scheduling of this leave is negotiable and can be distributed over the 8-year period. Parents are entitled to take parental leave for each child.

The initial 9 weeks of parental leave are funded by the government at 70% of the regular salary, capped at 70% of the maximum daily wage. The timing of this leave is flexible, but the total hours must correspond to the employee's full working week. Paid parental leave is applicable only until the child reaches one year of age. Employers have the option to apply for an allowance for the paid parental leave of their employees through the Dutch Employee Insurance Agency (UWV).

Sick Leave

Employers are mandated to provide sick employees with their salary for a duration of 2 years. The wage payment comprises 70% of the last earned salary, ensuring it does not surpass the maximum daily wage. In the first year, the payment includes at least the statutory minimum wage. Typically, employment contracts stipulate that the employer will cover either 70% or 100% of the employee's full salary (uncapped) for the first year of illness and 70% of the employee's salary (with the option for capping) during the second year of illness.

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

An employer can only come towards a termination of an employment agreement on the basis of a valid reason in combination with the fact that there is no longer a suitable redeployment for the employee within the company. The following reasons are specified in the Dutch legislation:

  • Redundancy due to economic circumstances
  • Long-term disability (two years)
  • Frequent absence due to illness or disability which results in unacceptable consequences for business operations
  • Underperformance
  • Misconduct
  • Refusal to perform contractual duties due to conscientious or religious objection
  • Disturbed relationship

Terminations in the Netherlands can be complex. As a general rule you cannot unilaterally terminate an employee in the Netherlands without the permission of the Dutch Courts or the Dutch Unemployment Agency (UWV). In most cases it is therefore preferred to seek mutual consent to a termination in which case the governmental permission is not required.

Notice Period

When a termination is done by mutual consent, notice periods are often required in order to obtain the employee’s consent. Typically, the notice period can be between 1-4 months depending on how long the employee has been with the company. Notice periods always start at the end of the month.

Notice periods should be applied as follows:
  • Less than 5 years of service: 1 month’s notice
  • Between 5 and 10 years of service: 2 months’ notice
  • Between 10 and 15 years of service: 3 months’ notice
  • 15 years or more of service: 4 months’ notice
Severance for Employees

When a termination is done by mutual consent, severance payments are often required in order to obtain the employee’s consent. Typically, the amounts for severance by mutual agreement can be equivalent to 2-6 months of salary or more depending on the strength of the case. In case of a termination by the court or the Dutch Unemployment Agency (UWV) the statutory severance needs to be paid which is roughly 1/3 gross monthly salary per each year worked.

To protect you from unforeseen financial risks arising from terminations, Jackson and Frank applies a Severance Accrual to all employment agreements in this country. Jackson and Frank has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

The legal minimum number of vacation days for an employee in the Netherlands per year is four times the number of days worked per week.

This typically means 20 holidays in the case of a full-time employee working for five days a week. Most employers in the Netherlands grant their employees 25 days of paid holidays.

Public Holidays

The Netherlands celebrates 10 national holidays.

National public holidays include:
  • New Year's Day: Monday, January 1st
  • Good Friday: Friday, March 29th
  • Easter Sunday: Sunday, March 31st
  • Easter Monday: Monday, April 1st
  • King's Day: Saturday, April 27th (National Holiday)
  • Liberation Day: Sunday, May 5th (National Holiday)
  • Ascension Day: Thursday, May 9th
  • Whit Sunday: Sunday, May 19th
  • Whit Monday: Monday, May 20th
  • Christmas Day: Wednesday, December 25th
  • Boxing Day: Thursday, December 26th
Onboarding

Onboarding takes 2 business days after the client signs the SOW.

Salary Requirements

At Jackson and Frank, the 8% holiday allowance is included in the annual salary. This means that the employee's annual salary on the Jackson and Frank platform will include both the annual base salary and the 8% holiday allowance.

When determining the employee’s annual salary, ensure that you include both the base salary and the 8% holiday allowance.

The 8% holiday allowance is invoiced monthly as an employer cost, separately from the salary.

Employment Contract Details

A Dutch version of the employment agreement is not required under Dutch law. An English-only version is permitted under Dutch law and is common practice in the Netherlands.

A contract must include:
  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

It is a common and recommended practice in the Netherlands to offer a fixed term contract to ensure a good match before entering into a permanent contract as terminations can be complex. It is possible to enter into 3 fixed term contracts with a maximum total duration of 3 years.

Probation Period

Probationary periods can be for a maximum of 2 months for indefinite term employment agreements and for fixed term employment agreements for 2 years or more. For fixed term contracts of less than 2 years (but a minimum of 6 months) a probation period of 1 month can be agreed upon. This cannot be extended under Dutch law.


Unlock the ultimate guide to successful hiring in the Netherlands

Hiring Guide Netherlands

Why the Netherlands?

The Netherlands is known for its strategic location, innovative climate, and skilled workforce. Our guide offers insights into the Dutch job market.

Key insights include:

  • Labour Market Overview
  • Employment Regulations
  • Language Skills
  • Recruitment Channels
  • Cultural Adaptation