The main clauses
Term: you can give up to three temporary contracts within three years. After that, the employee gets a permanent contract by law. Plan this chain when you make the first offer. Probation: a probation period is valid only in writing. It can be up to one month for shorter fixed-term contracts and up to two months for longer and permanent contracts. For the shortest contracts, it is prohibited. Competition and relations clauses: these are valid in permanent contracts if they are in writing. In fixed-term contracts, you must document a substantial business interest. Draft the relations clause, which protects your customer base, with care. Notice: the statutory notice period depends on the length of service. Most terminations follow set legal steps and usually end in mutual consent.
The pay and leave rules
Holiday allowance (8%) is added on top of gross salary, and holiday days accrue by law. Sick pay continues for a long period by international standards. The employer must pay most of the two years, which makes absence insurance a sensible choice: the starter set. The full payroll setup around the contract is covered in that page, and the sector pension question is answered early in that duty.
A Dutch BV with staff or a director on the payroll has to file every month. We do the payslips, the payroll tax return and the yearly forms. See payroll and administration for a Dutch BV.
Good habits for employers
Review your standard contract every year, and keep track of the chain of contracts for each employee. Keep a file for each employee from the first day. For international hires, the rules on permits and the tax ruling also apply. See the knowledge migrant permit and hiring your first employee. Employers who skip this preparation have the most problems with Dutch employment rules.