A written contract is required for most employment types to clarify terms and meet legal standards. Contracts should outline the job role, salary, working hours, and any other specific terms that are relevant for compliance with Dutch labor laws.
Employer of Record (EOR) Netherlands
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in the Netherlands is handled efficiently and in full compliance with local regulations.
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The most affordable solution on the market, saving you time and money.
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We draft bilingual contracts that comply with Dutch labor laws.
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in the Netherlands
Written contracts are mandatory for non-EU employees, fixed-term, and part-time workers. This document must be prepared and signed before the start date to avoid potential legal issues.
Salaries should be stated in euros and should include gross annual or monthly amounts. Specifying the number of installments and payment schedule ensures transparency and meets legal requirements.
Include clauses like probation, non-compete, and confidentiality, especially for higher-level positions. Remote work agreements should outline specifics, including location and costs covered.
Choosing an Employer of Record (EOR) in the Netherlands simplifies compliance with complex Dutch labor laws, reduces administrative burdens, and accelerates business expansion. EOR services in the Netherlands handle payroll, benefits, and tax filings, ensuring legal compliance while enabling companies to focus on their core business.
in the Netherlands
1. What are the key steps in employee onboarding in the Netherlands?
Employees need to register with the local municipality to obtain a citizen service number (BSN), which is crucial for tax and social security contributions. They must also open a Dutch bank account for salary deposits. If they’re non-EU citizens, they need a work permit and visa, which the employer must assist in securing before onboarding. Globaine handles these details to ensure a smooth onboarding experience.
2. When should employees complete pre-hire medical checks in the Netherlands?
In the Netherlands, pre-hire medical checks are typically required only for roles where health risks are present, such as in healthcare, food handling, and certain industrial jobs. These checks must be completed before the employee begins working to ensure compliance with Dutch occupational health and safety regulations.
3. What documents are required for onboarding in the Netherlands?
Essential documents include a signed employment contract, the employee’s BSN number, identification (passport or ID card), and bank account details for salary payments. For non-EU hires, a valid work permit and residence permit are also mandatory. These documents ensure lawful employment and allow Globaine to manage payroll and taxes accurately.
4. Why businesses in Netherlands need EOR services?
5. How does EOR in Netherlands different from other countries?
in the Netherlands
Salaries in the Netherlands are generally paid in 12 installments, with some companies providing additional holiday pay, typically one month’s salary, in May or June. A 13th month or year-end bonus is also common but not legally required. This structure ensures employees receive both regular pay and a holiday allowance, enhancing financial stability.
Employers must reimburse remote employees for work-from-home expenses, such as internet and utilities, in line with Dutch tax guidelines. The reimbursement should be detailed in the employment contract. Providing allowances for remote work helps companies meet legal requirements and support employees working from home.
The minimum wage in the Netherlands is age-dependent and is updated twice yearly. For employees aged 21 and over, the minimum monthly wage is €1,995 as of 2024. Employers must ensure compliance with these rates to avoid legal repercussions and support employee welfare.
in the Netherlands
1. What are the income tax rates in the Netherlands?
The Netherlands has a progressive income tax system with two main brackets: 36.93% for income up to €73,031 and 49.5% for income above this threshold. Understanding these rates helps employers and employees alike manage financial planning and compliance with Dutch tax laws.
2. How does the tax system apply to non-residents in the Netherlands?
Non-residents working in the Netherlands are typically taxed at the same progressive rates on their Dutch-sourced income. For expats, the 30% ruling may apply, allowing tax-free reimbursement of up to 30% of the employee’s gross salary to cover relocation costs, provided they meet specific criteria.
3. When should tax returns be submitted in the Netherlands?
Annual tax returns are due by May 1st for the previous tax year. Employers are responsible for monthly income tax withholdings, and any adjustments or declarations must be filed within the designated period. This system keeps both parties compliant and reduces year-end tax liabilities.
4. What social security contributions are required in the Netherlands?
Employers contribute 18.62% of an employee’s salary toward social security, while employees contribute 27.65%. These contributions fund benefits like healthcare, pensions, and unemployment insurance, supporting social welfare.
in the Netherlands
Employees are entitled to a minimum of four times the weekly working hours in paid leave each year, typically 20 days for full-time employees. Additional leave days may be granted through collective bargaining agreements or company policies.
Annual leave begins accruing from the start of employment and can be used after the probation period or as agreed upon with the employer. Employees are encouraged to use their leave within six months of the accrual year’s end.
Maternity leave includes six weeks before and ten weeks after childbirth, totaling 16 weeks of paid leave. Paternity leave includes one week of paid leave, with an additional five weeks available at 70% pay. This policy supports family life and complies with Dutch labor standards.
The Netherlands has seven national public holidays, including King’s Day, Christmas, and New Year’s Day. Employers are not legally required to grant these days off but commonly do. Employment contracts should specify holiday entitlements to avoid misunderstandings.
in the Netherlands
1. What benefits are mandatory in the Netherlands?
Employers must provide a holiday allowance (8% of annual salary) and pension contributions as applicable. Offering additional benefits like healthcare and travel allowances helps employers remain competitive.
2. Is there a home office allowance for remote employees in the Netherlands?
Yes, Dutch employers commonly offer a home office allowance up to €2 per remote workday, covering utilities and internet. This amount is negotiated and included in the employment contract.
3. Are meal allowances commonly provided in the Netherlands?
While not mandatory, meal allowances are a popular, tax-free benefit among large companies to support meal costs for on-site employees.
4. What additional benefits are typical in the Netherlands?
Besides the mandatory holiday allowance (8% of annual salary), Dutch employers often provide a range of additional benefits. Common perks include transportation allowances, commuting reimbursements, and health insurance contributions. Some employers may also offer professional development budgets, flexible working arrangements, and gym memberships as part of a comprehensive benefits package designed to attract and retain top talent in a competitive market.
FAQs
1. What is EOR in Netherlands?
An Employer of Record (EOR) in the Netherlands is a service that allows businesses to hire employees without setting up a local entity. The EOR manages payroll, tax compliance, employment contracts, and benefits, ensuring adherence to Dutch labor laws.
2.What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in the Netherlands?
By using Globaine’s EOR, companies save significantly on setup costs, ongoing administration, and compliance fees, avoiding the high expenses associated with establishing and maintaining a local Dutch entity.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine achieves rapid onboarding by utilizing a streamlined system for document preparation and verification, backed by local experts who ensure quick, compliant setup within 12 hours.
4. Can Globaine handle complex employment scenarios in the Netherlands, such as drafting bilingual contracts and managing terminations?
Yes, Globaine drafts contracts in both Dutch and English, ensuring compliance, and expertly manages terminations, severance, and other employment complexities under Dutch labor regulations.
6. How does Employer of Record work in Netherlands?
An EOR in the Netherlands acts as the legal employer, handling payroll, benefits, and compliance with Dutch labor laws. Businesses can hire employees quickly without setting up a local entity, ensuring smooth HR operations.
