Hiring in Netherlands

The terms set out role, salary in EUR, working hours, leave, holiday allowance, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language for international roles. Check whether a generally binding collective agreement (cao) covers the role, because it overrides weaker contract terms.

Fixed-term contracts are permitted, but a fourth contract or more than 36 months in a chain becomes indefinite by law, and most EORs default to indefinite terms.

Set probation from day one. Probation cannot be extended and must be the same for both sides. Contracts of 6 months or less cannot include it, and a clause that breaks the rules is void.

The window is short and the EOR, not you, carries the dismissal risk. Agree how performance will be reviewed before you agree a start date.

The Working Hours Act caps a shift at 12 hours and a week at 60, with an average of no more than 48 hours over 16 weeks.

Overtime pay comes from the contract or collective agreement, and many professional contracts treat reasonable overtime as covered by salary. Put the position in writing either way.

Market practice for professional roles is 25 days, above the statutory floor, so quote the market figure when you budget. The holiday allowance is usually paid in May or June.

Sick pay runs for up to 104 weeks at a minimum of 70% of salary, paid by the employer, and many contracts top up the first year to 100%. Maternity and paid parental leave are funded by the UWV, while a week of partner leave sits with the employer, so confirm which side the EOR carries.

Notice alone is not enough. Dismissal needs UWV permission, a court ruling or a settlement agreement, and notice generally cannot be given while the employee is off sick. The transition payment is one third of a month's salary per year of service, capped at 102,000 EUR in 2026 or one year's salary if higher.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave, holiday allowance and any agreed severance. Most exits end in a settlement agreement, so budget above the statutory floor.

Basic health insurance is compulsory, but employees buy it themselves, so employer medical cover is a perk rather than a necessity. Travel and home-working allowances are standard for professional roles, and a 13th month is common.

Dutch law treats most EOR arrangements as payrolling, so the employee is entitled to the terms your company would give a comparable direct hire. Ask what is included in the fee and what is billed on top.

Employer contributions add roughly 17% to 19% for a permanent hire, on salary up to 79,409 EUR in 2026. Pension and the 8% holiday allowance come on top, and all of that is before the EOR fee.

The 30% ruling deadline is the trap. Qualifying hires recruited from abroad can receive up to 30% of salary tax free, falling to 27% from 2027, but the application must reach the tax authority within four months of the start date to apply from day one. Build that into the onboarding timeline.

Ask whether the EOR is a recognised sponsor itself or relies on a partner. Only the sponsoring entity can file, and the 2026 salary floors are 5,942 EUR a month for hires aged 30 and over and 4,357 EUR under 30, excluding holiday allowance.

EU, EEA and Swiss nationals need no permit. Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis, such as an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it. The citizen service number (BSN) can only be used where the law allows it.

Incorporating a BV through a notary is quick and needs only nominal capital, but the running cost is the point: Chamber of Commerce filings, accounting, annual accounts, payroll, pension administration and collective agreement checks set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.