Dutch Labour Law / Employment Law in The Netherlands
Dutch Employment Law: Dutch employment lawyer in Amsterdam
Our Dutch Employment Law attorneys (lawyers) in Amsterdam have experience with the complexities of Employment Law and Labour Law in The Netherlands. If you are facing an employment legal matter, our Amsterdam employment lawyers are ready to help. Labour & Employment laws in The Netherlands are constantly changing and are crucial to both employees, Managing Directors and employers. Dismissal laws in the Netherlands can change drastically. The law firm WS in Amsterdam is specializing in advice on Dutch labour law, Employment Law and work related problems for corporates and individuals.
Our Amsterdam based labour law attorneys have a broad experience in advising and litigating for companies and individuals on employment matters, which means we bring multiple perspectives and a wealth of experience to every case. The advocates of our law firm in Amsterdam practise across the whole spectrum of jurisdictions. Our goal is to resolve work related problems through a tactful negotiation, if possible, and by decisive litigation when it is not.
Legal assistance Dutch Employment Law in Amsterdam, The Netherlands
Our Amsterdam attorneys represent and advise companies and expats on a wide variety of Labour Law and Employment Law issues. There is no typical day in labor and employment law practice. That’s part of what keeps it interesting and stimulating. We focus on advising and litigating in the areas of:
- General employment advice
- Discharge with immediate effect
- Expulsion / Suspension / Dismissal / Constructive dismissal / Wrongful dismissal
- Dissolution / termination of labour agreement
- Restraint of trade clause / Client clause
- Business transfers, transfer of undertaking
- Illness, incapacity for work and reintegration
- Preparation and assessment of labour contracts (drafting terms and conditions)
- Preparation and assessment of settlement agreements / termination agreements
- Discharge / termination of labour agreement
- Payments / Wage claims / Benefit
- Civil service law
- Director under the articles of association (managing director)
- Freelance, Independent contractor
Employment contracts in The Netherlands
The main legal distinction is between fixed-term and open-ended employment contracts. Some fixed-term contracts may automatically become an open-ended contract after a certain period (2 years) or a certain number of renewals (3). Also on-call employment contracts (‘flex-contracts’) are possible, like: 0-hours, on-call or ‘min-max’ employment contracts.
Employees with on-call contracts may demand an open-ended contract if the contract in practice shows a fixed work pattern. Both parties are free to include any clauses on which they agree in the employment contract, except for those contrary to the mandatory provisions of the laws and regulations. Many employers are subject to collective agreements (CAO, company agreements) which cover benefits and working conditions. There is a significant number of company agreements. The Dutch Minister of Social Affairs and Employment is entitled to issue a decree to make a CAO ‘generally binding’ on all companies in a specific sector.
30% tax ruling for employees from abroad to work in the Netherlands
What is different about Dutch employment law: employee rights
Workers in the Netherlands are protected by various complex laws and regulations: Dutch Labour Law offers a high degree of protection for employees in The Netherlands, including protection with regards to safety, statutory national minimum wage, sick pay, maternity and pregnancy rights, transfers of undertakings, insolvency, data protection, holiday entitlement and restrictions on working hours (with particular restrictions for night workers). The employer is obliged by law to pay a holiday allowance worth at least 8% of annual pay.
An expatriate almost always enjoys a right at least to the minimum of local protections/benefits of the Netherlands. Employers are obliged to act as a “good employer”. The employment/labour laws of the Netherlands apply even if the expatriate labor agreement has a choice-of-law clause. The employer should, in most cases, respect Dutch and international law.
Dutch enterprises with more than 50 employees must set up a works council (ondernemingsraad, OR) with employees’ representatives. A works council has extensive consultation and information rights.
Ways of terminating employment in the Netherlands: Dutch dismissal law
The Dutch labour law system for dismissal is very protective of employees. According to Dutch dismissal law, dismissals can be performed only in the cases expressly provided by the Dutch Labor Code and under observance of the procedure stipulated by the respective provisions.
An impartial body (UWV or District Court) must first decide if dismissal on other grounds is allowed.
The grounds for dismissal according to Dutch dismissal law are:
- enforced redundancy or redundancy on grounds of long-term incapacity (UWV; Dutch Employee Insurance Agency – public employment office);
- dismissal on personal or behavioural grounds: poor performance, frequent sickness absence, culpable conduct, disturbed working relations (Dutch District Court – Cantonal Court). If the Cantonal court finds that sufficient grounds exist, it may dissolve the employment contract.
Termination Agreement / Settlement Agreement
Employment contracts (definite or indefinite term, on-call contracts) may also be terminated by:
- mutual consent (settlement agreement or termination agreement);
- termination during the probationary period;
- by instant dismissal for ‘urgent reasons’ (dismissal on the spot), such as fraud, for which termination can take place immediately without compensation (also: theft, drunkenness, violence, threats, deception, harassment). The employee must be informed immediately of the reasons for the instant dismissal;
- non-renewal of a fixed-term contract.
A Termination Agreement means that employer and employee have reached an amicable end to the working relationship. A Termination Agreement (Termination Agreement, Settlement Agreement, Employment Exit Agreement, Compromise Agreement, Employment Separation Agreement) outlines the terms of this deal. Exit agreements are offered in The Netherlands to employees when they are being made redundant or in case of involuntarily unemployment. In case of a Termination Agreement, the employee will have two weeks to withdraw consent.
Statutory notice period in the Netherlands
The employer must observe the applicable notice period when terminating the employment relationship. If there is no written employment contract and no collective employment agreement, the period of notice is regulated by the Dutch Civil Code, Book 7, Article 672. The length of the notice period for an employer depends on the duration of the employment contract, with a maximum of 4 months:
- 1 month for less than five years of service;
- 2 months for service between five and less than 10 years;
- 3 months for 10–14 years of service;
- 4 months for 15 or more years of service.
Our independent Amsterdam Employment Solicitor (attorney) can assist you with termination agreements to terminate an employment agreement by mutual consent.
Dutch Employment Law: redundancy pay and transition compensation (Severance benefits)
The transitional severance pay (“transitievergoeding”) was introduced in 2015 in Dutch dismissal law. The “judge’s formula” (“kantonrechtersformule”) does not apply anymore in proceedings.
The transition compensation (redundancy compensation, statutory severance payment or dismissal compensation) should compensate employees for costs such as costs for scholing or outplacement and their loss of earnings. This is available to all employees who have an employment contract that lasted for at least two years ore more. The amount of a transition compensation is calculated using a formula based on:
- how long the employee has worked for the employer;
- monthly pay.
Proceedings in Dutch Employment Law
Our labor lawyers represent both employers and employees in disputes and negotiations. If a trial is necessary, we work to present your case in a way that maximizes your chance to win. In some cases, according to Dutch dismissal law, a court case will be required for a specific labour conflict:
- summary proceedings
- or a procedure on the merits.
This might involve:
- expulsion / suspension [schorsing / op non actiefstelling],
- discharge [ontslag],
- workplace conflict
- performance issues
- salary problems
- wrongful termination, unlawful termination
- the Permanent Invalidity Benefit Act.
Our lawyer in Amsterdam has extensive experience with international clients, and will advocate on your behalf with strong and knowledgeable legal counsel. For further information about Dutch Dismissal Law, Dutch Employment and Labour Law, please contact our Employment Contract lawyer in Amsterdam: 0031 20 5221999