Without establishing a physical presence there, Marzuna’s Netherlands EOR (Employer of Record) assists you in employing remote teams in the Netherlands. It might be difficult to open offices abroad and to get through the necessary legal and administrative procedures. The unified and automated platform from Marzuna will let you effectively establish, compensate, and oversee your remote crew in the Netherlands.
Find out more about how Marzuna solutions may help your company with payroll, compliance, and onboarding.
The employment law in the Netherlands is not governed by a single statute. It is controlled by rules included in the Collective Labor Agreement, the Dutch Civil Code, the company’s internal policies, and each employee’s own employment contract.
The Dutch Ministry of Social Affairs and Employment places a high priority on upholding workers’ rights and offering supportive working conditions. Companies can always use temporary agencies and collective labor agreements to meet their workforce requirements more flexibly. This is one of the main reasons you should use reputable and trustworthy professional services that are knowledgeable about the legal framework governing employment rules before developing your business in the Netherlands.
| Entitlements | Explanation |
|---|---|
| Statutory Working Hours |
|
| Leaves Allowed | There are other leaves available to employees, such as: • Adoption Leave (adoptieverlof) • Emergency Leave of Absence (calamiteitenverlof)
Prolonged compassionate leave (langdurig zorgverlof) • Short-term compassionate leave (kortdurend zorgverlof) |
| Annual leave accrual entitlement | In most circumstances, 20 days are the maximum number of days of paid statutory yearly leave. Employers pay employees while they are on leave, plus an additional 8% of their yearly wage as a “bonus.” By accruing leave, employees can “store up” the number of days they are entitled to. |
| Maternity and Parental Leave | Maternity leave lasts for sixteen weeks, with six weeks spent prior to and ten weeks following the birth of the child.
Parents whose child is younger than eight years old are also eligible for parental leave. (Ouderschapsverlof) Under parental leave, an individual may take a maximum of 26 times as many leaves as the total number of hours they work in a week. |
For full-time employees, the key facets of the employment arrangement encompass:
In contrast, with contractors, the following principles come into play:
As a result, many foreign employers often opt for contractor arrangements due to their more adaptable policies and contracts.
To learn more about Marzuna’s tailored solutions for your business requirements, we invite you to book a demo!
Here is a comprehensive checklist to guide you through the entire hiring process in the Netherlands:
Begin with a thorough screening of prospective employees, including a rigorous background check and identity verification of original documents.
Register as an employer with the Dutch Tax and Customs Administration to fulfill your payroll tax obligations when hiring in the Netherlands.
Establish a clear employment contract that outlines details such as the application of a Collective Labor Agreement (CAO), pension schemes, working hours, and other relevant terms. A detailed list of contract elements is provided below.
Ensure that your employees receive the minimum wage and holiday allowances as per their employment type.
Provide a safe and healthy work environment, along with adhering to leave schemes and granting annual days off to your employees.
Conduct a comprehensive risk assessment and evaluation for your employees to maintain transparency regarding workplace hazards and your efforts to mitigate them.
For permanent Dutch employees, deduct social insurance premiums from their pay, or opt to become a self-insurer and make premium payments to the Dutch Tax and Customs Administration.
Verify that your employees possess Dutch Health Insurance coverage.
Explore recruitment opportunities within the European Economic Area before considering candidates from other countries.
Apply for a work permit for employees through the Employee Insurance Agency (UWV).
Arrange suitable accommodation for employees hired under a work permit.
Recognize the two main types of employment contracts in the Netherlands: temporary and permanent. Contracts can be either verbal or written, with the specification of the applicability of a Collective Labor Agreement (CAO).
Note that after three consecutive temporary contracts or three years of temporary contracts, an employee must be offered a permanent contract unless otherwise stated in the CAO.
Within one month of employment commencement, the employer must sign an employment contract containing essential details such as the workplace, identities and residences of the parties involved, job description, working hours, salary, pension arrangements, contract duration, and more.
Explore popular job platforms for hiring in the Netherlands, including Indeed.nl, LinkedIn, Nationale Vacaturebank, Monsterboard.nl, Randstad, and Werk.nl.
For expert guidance on navigating the hiring process in the Netherlands, reach out to Marzuna.
The probationary period should be clearly documented. In the Netherlands, the standard probation period for an indefinite employment contract or a contract lasting two years or more is set at 2 months. For contracts of shorter duration, the maximum probation period allowable is 1 month. It’s important to note that a probationary period is only applicable in employment contracts with a duration exceeding 6 months.
In the Netherlands, there are typically five methods for terminating an employment contract:
| Topics | Explanation |
|---|---|
| Termination by mutual consent; | With a settlement agreement, the employer attempts to end the termination in an amicable manner with the worker.
The termination date of the employment contract and the amount of severance that the employer must pay are both specified in a settlement agreement. This agreement also includes any future commitments. |
| Termination proceedings before the UWV WERKbedrijf (Employee Insurance Agency) | The employer may file a request for termination with the UWV WERKbedrijf (Employee Insurance Agency) if the parties are unable to come to a mutually agreeable solution and the employer decides to end the employment agreement for commercial or economic reasons.
The employment agreement cannot be terminated without solid justification and supporting documentation. There will be writing in both proceedings (in part). It is generally illegal in the Netherlands to terminate an employee’s job for sickness. |
| Termination due to dissolution of contract by the cantonal court. | In the event that mutual consent cannot be reached between the employer and employee, the employer may submit a request with the sub-district court to terminate the current contract for personal grounds (such as underperformance). |
| Termination with the consent of the employee | A new criteria for termination under the Work & Security Act is the employee’s written consent following notification from the employer. |
| Dismissal due to an urgent cause | An employer may terminate an employee for an urgent cause and with immediate effect if the employee has committed theft or other significant misbehavior. There is no need to obtain previous approval from the UWV court as this is handled through a different process. In order to fully terminate the employment contract, the employer might need to start conditional termination processes in court and notify the employee of the dismissal as soon as feasible. |
Business expansion in the Netherlands can be expedited and simplified with the Marzuna Netherlands Employer of Record (Netherlands EOR) solution. Opting for the EOR solution ensures a seamless and compliant processing of payroll and other employment responsibilities, eliminating the need to establish a new entity in the Netherlands. Marzuna offers comprehensive support in handling your employees’ monthly payroll, employment contracts, work permits, and tax obligations in the Netherlands.
Outsourcing via an Employer of Record is a critical decision for companies expanding into the Netherlands. They must decide whether to establish their own Dutch office to manage employment, payroll, onboarding functions or entrust these tasks to a global employment organization. Marzuna is your solution in this regard. With our Employer of Record services, you can efficiently deploy staff, oversee payroll management, and ensure all compliance requirements are diligently met. Contact us today to learn more.
| Visa Category | Explanation |
|---|---|
| Provisional Residence permit (MVV) | You must apply for both a residence permit and a provisional residence permit (MVV) if you are not a citizen of the European Union. The Entry and Residency Procedure is the term for this.
The kind of business—sole proprietorship, partnership, or startup—determines the cost of a residency permit. It is necessary to renew residence permits annually. |
| Single Permit (GVVA) | You must apply for a combined residence and employment permit (GVVA) if you are not from the European Union or Switzerland and you want to work in the Netherlands for a period longer than three months. This three-year visa is often sponsored by a company.
The Dutch Employee Insurance Agency (UWV) may issue a separate work permit to an employee who is prepared to work for a shorter period of time than three months. This work visa can be extended if needed and has a maximum one-year expiration date. Get in contact with us to receive a price for obtaining the required permissions. |
| Intra-company Transfer – Separate work permit and residence permit | Employers must file two separate applications for intra-company transfers: one for a residence permit with the Immigration and Naturalization Service (IND) and another for a work permit with the Dutch Employees Insurance Agency (UWV).
Depending on the worker’s nationality, the employer might have to submit an application for a temporary residency permit (MVV). The sponsor subsequently submits the employee’s application for the Entry and Residence Procedure (TEV), as previously indicated. The IND may expedite your process to 7 weeks if you are an employer and a registered sponsor. |
| Entrepreneur Permit | ZZP’ers, or self-employed without workers, are the term used in the Netherlands to refer to freelancers, entrepreneurs, and startup founders. Entrepreneurs can speak with the IND on the necessary papers to register their firm as a ZZP or to set up their own business in the Netherlands.
An entrepreneur can stay in the nation for a year with the related residence visa under a new plan, during which they can work on developing their product and expanding their firm. This period can be extended if the enterprise satisfies the standards of the self-employment scheme. |
| Type of Payroll | Description |
|---|---|
| Remote Payroll | When a foreign, non-resident corporation pays a resident employee, it’s known as a remote payroll. One way a non-resident firm might pay its employees (both foreign and domestic) in the Netherlands is through a fully outsourced service.
Here’s where Marzuna enters the scene. You may rely on Marzuna to handle your payroll administration in the Netherlands through outsourcing. |
| Local Payroll Administration | Sometimes a business will use one of the forms to register in the Netherlands, but choose to outsource its payroll to another business. Payroll services can assist with this, which is where Marzuna can provide you with a solution. It’s important to keep in mind that the company, in its capacity as the Employer of Record, is still entirely in charge of making sure that all labor, immigration, tax, and payroll laws and regulations are observed.
Get in touch with us to handle your payroll taxes and oversee your Dutch company. |
| Internal Payroll | Some large businesses need more sophisticated payroll management systems for all of their employees worldwide. In these circumstances, the business must seek full incorporation in all necessary places and appoint personnel capable of managing all payroll-related responsibilities. |
| Fully Outsourced Payroll and Employment | Payroll outsourcing can be fully outsourced by businesses to an EOR in the Netherlands, such as Marzuna. It oversees the three components of payroll in the Netherlands as well as all other payroll-related matters.
The personnel receives monthly salary, from which social security and taxes are withheld at the source and given to the local government. Marzuna handles payroll processing and furnishes paystubs to staff members. |
In the Netherlands, there are a lot of rules that must be observed when it comes to payroll and taxes. A payroll tax number and registration with the Dutch Tax Authorities are requirements for all firms. Payroll tax consists of three components: income tax withholding, company tax, and national insurance withholding (which is included in payroll tax). These are some of the main problems for payroll outsourcing in the Netherlands.
Taxes in the Netherlands
In the Netherlands, global income is categorized into three distinct types of taxable income, each subject to its specific tax rate within what is referred to as a ‘box.’ These boxes serve as separate schedules for tax assessment. An individual’s overall taxable income is determined by the combined income within these three categories.
Box 1 encompasses taxable income derived from work and property ownership, incorporating the following elements:
Box 2 relates to taxable interest income, while box 3 relates to taxable income from savings and investments.
| Tax | Explanation |
|---|---|
| Corporate Taxes | 15% – on a profit up to EUR200,000 21.7% – on a profit of EUR200,001 and above |
| Social Security Contribution | 11.99% to 16.99% |
| Payroll Tax | 19.81% |
Employee Taxation
| Taxes | Explanation | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Taxe |
|
||||||||
| Social Security Contribution | 27.65% |
Employees get bonuses as vacation pay, which is equivalent to at least 8% of their total yearly pay. If there is a work council, it can assist the employers in implementing, modifying, or discontinuing a bonus program.
The employer’s criterion list has to explicitly state the requirements or standards for being eligible for a bonus. Since Dutch employees have the ability to contest the amount, they should also be entitled to defend the incentives.
If you originate from a non-European Union country and aim to relocate your workforce to the Netherlands, securing both work permits and residence permits is imperative. Prior to obtaining these permits, the fundamental step involves registering your company in the Netherlands. Collaborating with your Employer of Record, Marzuna, can greatly facilitate the sponsorship of the requisite permits for your employees.
The entire registration process typically spans a duration of 2 to 4 weeks and encompasses six crucial steps for establishing a subsidiary company in the Netherlands:
Marzuna simplifies this process, offering local partnerships in the Netherlands through Employer of Record solutions. This approach allows you to retain control over your global workforce without the need to establish local legal entities. Discover how Marzuna streamlines global employment processes by visiting our website.
The majority of businesses who are growing internationally find that hiring in the Netherlands is a smart option since it is a fantastic business location with excellent infrastructure and a large talent pool. In an effort to entice more businesses to establish offices and recruit staff in the Netherlands, the government has also developed legislative frameworks. There are rules that make it easier for more highly qualified and experienced individuals to establish their firms there.
With Marzuna’s experience and strong worldwide job network, you can accomplish all of your objectives for your international growth.
