Dutch labour law and work contracts

Dutch employment law is extensive, covering issues such as trial periods, temporary contracts, paid vacation, notice and dismissal and minimum wage. This step-by-step-guide by the Dutch government has detailed information about many of the factors involved with hiring employees, such as payroll and contracts. For example, a work contract specifies the employee’s salary, outlines working hours and rest times and indicates arrangement of an employee pension scheme. Contracts can be fixed-term or permanent, but there is a limit on how long an employee can be working on temporary contracts – they automatically enter into permanent employment starting with the fourth consecutive contract or after two years, whichever comes first.

Hiring talent from abroad

Amsterdam has a strong, internationally-oriented labour pool, but you might need to hire specialised employees from abroad. If the person you want to hire is not a citizen of the EU, EEA or Switzerland, they need work and residence permits. This must be requested by the employer. However, different rules apply when the employee’s salary is above a specified minimum, in which case they qualify as highly skilled migrants.

Highly skilled migrants

Highly skilled migrants can follow a simplified procedure for acquiring work and residence permits. The company hiring them needs to acquire the status of recognised sponsor.

The 30% tax ruling

The 30% ruling can give an extra incentive for internationals to come work in the Netherlands. From a tax perspective, the ruling means that the salary agreed upon between the employee and employer will be reduced by 30%. In return, the employee should receive a 30% allowance as reimbursement for expenses.