From Employer of Record to Your Own Dutch Payroll

By Robert Jeffrey, Holdwise B.V., Hoofddorp. Checked against the official sources on 13 November 2026.

What changes when your company becomes the employer

An Employer of Record employs your colleague for you. It signs the employment contract, pays the salary and files the payroll return, and your company directs the daily work. Dutch sources call this model payrolling (business.gov.nl).

	With an Employer of Record	With your company as the employer
Legal employer	The Employer of Record	Your company
Employment contract	Between the employee and the provider	Between the employee and your company
Payroll return	Filed by the provider under its payroll tax number	Filed under the payroll tax number of your company
Sick pay and return to work	A duty of the provider, as the legal employer	A duty of your company
Pension and sector rules	Arranged by the provider, at least equal to the terms for your own staff	Arranged by your company, under the rules of its sector
Rules from 2027	The provider needs an admission, an exemption or a place in the transitional scheme	The ordinary duties of an employer

The tax position of your company needs the same attention in both models. An employee who signs contracts for your company in the Netherlands can create a taxable presence here in both models.

Two ways to become the employer

Your company abroad is the employer. It registers with the Dutch tax office as an employer from abroad (a non-resident employer) and files a Dutch payroll return. A Dutch company is optional. Non-resident employer in the Netherlands sets out this option.
Your own Dutch private limited company (BV) is the employer. Companies choose this for a growing team, for sales in the EU or for staff from outside the EU who need a sponsor. Dutch BV incorporation sets out the formation.

The tax adviser from our network checks which of the two suits the work your employees do, before you decide.

The steps

Read the agreement with the Employer of Record. Look for the notice period and the terms for taking over an employee.
Tax check. The tax adviser checks the permanent establishment question, the tax treaty and the social security position of the employee.
Registration. Your company registers as an employer with the Dutch tax office and receives a payroll tax number. It registers at the latest on the day the employee starts with your company.
New contract. Your company and the employee sign a new employment contract. The contract with the Employer of Record ends on the day before the new one starts.
Employer duties. Your company arranges the pension where its sector asks for one, a company doctor and, where you choose it, an insurance that pays the wage of a sick employee.
First payslip. The accounting firm sets up the payroll records. The employee receives the first payslip from your company, and the Employer of Record makes its final payment.
Expat scheme. An employee with the 30% ruling files a new request together with your company.

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What happens to the employment contract

The employee has a contract with the Employer of Record. Your company signs a new contract with the employee, and the old contract ends by agreement on the day before.

Dutch law looks at employers that follow each other for the same work. A fourth temporary contract in a row counts as a permanent one, and so does a chain of temporary contracts longer than three years. Contracts with the earlier employer for the same work count (Rijksoverheid, August 2026).

An employee who had three temporary contracts through the Employer of Record can therefore be in permanent employment with your company from the first day.

The end of a payroll arrangement is separate from dismissal. The employee keeps the protection against dismissal that every employee in the Netherlands has (business.gov.nl).

An employment lawyer from our network drafts the new contract when you ask for it. The lawyer also sets out the years of service, the holiday days, the holiday allowance already built up and the pension.

The Dutch admission system for firms that make workers available

The Dutch act on the admission of firms that make workers available applies from 1 January 2027. Its Dutch name is Wet toelating terbeschikkingstelling van arbeidskrachten (Wtta).

A firm is a lender under this act when it meets three conditions (Netherlands Authority for the Lending Market, November 2026).

It makes a worker available to another company.
It receives a payment from that company.
The worker works under the direction and supervision of that company.

The official site names temporary employment agencies, secondment firms and payroll companies, and also firms from abroad that lend workers to a company in the Netherlands. It describes a payroll company as a firm with the workers on its payroll, while another company directs them.

An Employer of Record works that way. The official pages use the Dutch words for payroll company, so ask your provider in writing which admission it applies for.

Date	What happens
1 November to 31 December 2026	Lenders register with the authority for the transitional scheme
1 January 2027	The act applies, and the transitional year starts
1 May to 30 June 2027	Lenders apply for an admission or an exemption
From 1 July 2027	Clients can check a lender in the public register
From 1 January 2028	The Netherlands Labour Authority enforces the act, and clients may hire workers only from a lender with an admission, an exemption or a place in the transitional scheme

An admission asks for a deposit of €100,000. A new lender pays €50,000 with its first application.

What this means for a client of an Employer of Record

Your company is responsible for checking that its provider is admitted.
Your company keeps a record of which workers it hires from which provider.
From 1 January 2028 the Netherlands Labour Authority checks clients too, and a client can receive a fine.

A company that employs its own staff and directs their work itself is an ordinary employer. The admission system is for firms that make workers available to another company.

A firm that lends workers itself finds the rules for lenders in the Wtta for lending staff in the Netherlands.

The 30% ruling after the switch

The Dutch tax break for staff recruited from abroad is now called the expat scheme (expatregeling), and many people still call it the 30% ruling. A change of employer asks for a new request.

With a new employer the employee keeps the scheme under two conditions (Belastingdienst, May 2026).

The new job starts at most three months after the old job ends.
The employee and the new employer file a new request, within four months after the start with the new employer.

The scheme then continues for the rest of its period. Our team prepares the new request with you, and the tax office decides.

What your company has ready

The agreement with the Employer of Record, with the notice period.
The current employment contract and the recent payslips of the employee.
A short description of what the employee does and may sign for.
The date on which your company wants to become the employer.
The details of your company, such as the legal form, the registration number at home and the names of the people who sign for it.
For the expat scheme, the decision of the tax office that the employee has now.

Who does what

Work	Who does it
Employing the person, signing the new contract, paying the salary and the payroll taxes	Your company, as the employer
The intake, the plan for the switch, the registration with the tax office and the contact during the year	Our team
The permanent establishment question, the tax treaty and social security	A tax adviser from our network
The payslips, the payroll return for each period and the annual statement	An accounting firm from our network
The new employment contract and the end of the old one, when you ask for it	An employment lawyer from our network

You see the scope and the fee in your proposal before we start.

Other payroll situations

Each situation has its own page.

Dutch payroll for foreign employers

The overview of the five situations, what Dutch payroll includes and how our team works.

Non-resident employer

Your company abroad employs someone who lives and works in the Netherlands, and is the employer itself.

Shadow payroll

The employee stays on the payroll at home, and a Dutch payroll next to it settles the Dutch wage tax.

Posted workers on a Dutch project

An EU contractor sends its own employees to the Netherlands for installation, assembly or construction work.

Sources

Last reviewed on 13 November 2026.

Frequently asked questions

Can we switch from an Employer of Record to direct employment in the Netherlands?

Yes. Your company registers as an employer with the Dutch tax office, signs a new employment contract with the employee and files its own payroll return. The contract with the Employer of Record ends on the day before the new one starts.

Do we need a Dutch company to employ the person directly?

A Dutch company is optional. Your company abroad can register with the Dutch tax office as a non-resident employer and file a Dutch payroll return. A Dutch BV is the other way, and companies choose it for a growing team or for staff who need a sponsor.

What happens to the contract and the years of service of the employee?

The employee signs a new contract with your company. Dutch law looks at employers that follow each other for the same work, so earlier temporary contracts with the Employer of Record count. A fourth temporary contract in a row counts as a permanent one, and so does a chain longer than three years. An employment lawyer from our network sets this out for your employee.

Does the Dutch admission act (Wtta) apply to an Employer of Record?

The act covers a firm that makes a worker available to another company for payment, to work under the direction and supervision of that company. The official site names payroll companies, also from abroad. An Employer of Record works that way, so ask your provider in writing which admission it applies for.

What does the Wtta mean for us as the client of an Employer of Record?

The act applies from 1 January 2027. From 1 July 2027 you can check your provider in the public register. From 1 January 2028 your company may hire workers only from a provider with an admission, an exemption or a place in the transitional scheme. The Netherlands Labour Authority can then fine a client.

Can the employee keep the 30% ruling after the switch?

Yes, under two conditions. The new job starts at most three months after the old job ends. The employee and your company file a new request within four months after the start. The tax office decides on the request.

Who is the employer after the switch?

Your company is the employer. It signs the contract, directs the work and pays the salary and the payroll taxes. Our team arranges the registration and is your single contact. A tax adviser and an accounting firm from our network do the tax check and the payroll for each period.

What does the switch cost?

The fee depends on the number of employees and on the questions the tax adviser answers. You see the scope and the fee in your proposal before we start.