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 checklist from the Dutch government has information about many of the factors involved with hiring employees, such as visas 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.