Dutch Employment Law Explained for Expats Working in the Netherlands
Introduction
If you work in the Netherlands as an expat, Dutch employment law generally applies to your employment relationship. Your nationality does not reduce the statutory protection you receive. The applicable rules can also depend on your employment contract, a collective labour agreement (CAO), mandatory Dutch law and, in cross-border cases, private international law.
Employment contracts in the Netherlands
An employment contract should clearly record the parties, role, salary, working hours, start date, duration, holiday entitlement, notice provisions and any applicable CAO. A fixed-term contract normally ends on its agreed end date. Successive temporary contracts may become permanent under the statutory chain rule, although a CAO or a specific statutory exception can change the outcome.
Do not rely only on an informal English summary. Ask for the complete contract and check restrictive covenants, bonus terms, pension arrangements, governing law and jurisdiction before signing.
Read about fixed-term contracts and settlement agreements.
Dismissal routes
Dutch dismissal law is regulated. Depending on the ground, an employer may need permission from UWV, dissolution by the subdistrict court, or the employee's written agreement to termination. A valid ground, adequate records, redeployment and any prohibition on dismissal must be considered.
A settlement agreement is voluntary. You do not have to sign during the first meeting and you may request time to obtain independent advice.
View the Dutch dismissal routes.
Settlement agreements
In a settlement agreement, employer and employee record the terms on which employment ends by mutual consent. For a possible WW benefit, the wording should accurately show that the employer initiated the termination, that there is no urgent reason or culpable conduct by the employee, and that the correct notice period and termination date have been observed.
The agreement should also address salary, severance pay, garden leave, accrued holiday, bonus and commission, pension, company property, restrictive covenants, a reference, legal costs and full and final discharge. The employee normally has a 14-day statutory reflection period after the written agreement is concluded. If the employer does not state this right in writing, the period is extended to 21 days.
A settlement agreement is not automatically safe for WW benefits. UWV makes the final decision, and the employee must satisfy the general WW conditions.
Have a settlement agreement reviewed.
Unemployment benefit (WW)
WW eligibility depends on several conditions, including unemployment insurance coverage, sufficient employment history, loss of working hours and income, availability for work and not being culpably unemployed. The applicable notice period matters because WW generally does not start before that period has expired.
If employment ends by mutual consent, check the initiative, reason for termination, end date and notice period before signing. Apply to UWV within the applicable application period and keep your contract, settlement agreement and recent payslip available.
Read about settlement agreements and WW benefits.
Illness and incapacity for work
Special protection applies during illness. In general, an employer must continue paying at least 70% of salary for up to two years, subject to statutory rules and possible contractual or CAO supplements. Employer and employee have reintegration obligations.
Signing a settlement agreement while ill can create serious income and benefit risks. Do not agree to termination during the first two years of illness without advice tailored to your medical and employment position.
Read about settlement agreements during illness.
Severance and the statutory transition payment
An employee is generally entitled to the statutory transition payment when the employer terminates or does not renew the employment contract. The statutory calculation is based on one third of the monthly salary for each year of service, calculated proportionately for the remaining period.
Termination by mutual consent does not automatically create the same statutory payment route. The financial settlement must therefore be negotiated and recorded clearly. Compare the proposal with the employee's position under the formal dismissal route.
Read about the statutory transition payment.
Equal treatment and protection against discrimination
Employers may not discriminate on prohibited grounds such as nationality, sex, pregnancy, age, religion, disability or chronic illness. A dismissal or disadvantage based on a protected characteristic may be unlawful. Different rules and evidential questions can apply depending on the circumstances.
Practical steps
- Request the complete proposal and the reason for termination in writing.
- Collect your employment contract, amendments, CAO, payslips and relevant correspondence.
- Check the dismissal route, notice period, WW position and any special protection.
- Calculate salary, holiday entitlement, severance and other financial terms separately.
- Ensure every agreed change is included in the final written version.
- Obtain advice before signing, especially during illness or where a deadline applies.
Need advice in English?
Our specialists can review a Dutch employment contract, dismissal proposal or settlement agreement in English. Call +31 (0)20 6160 120, email
Get the most out of your agreement and contact us today.
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we can answer your questions about dismissal and the settlement agreement;
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we can screen your settlement agreement for unemployment benefit safety, irregularities, pitfalls, the severance payment, etc.;
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we can advise you on ‘what to do?’
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we can negotiate with your employer for a better severance arrangement;
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we can — if you wish — try to prevent your dismissal.
In any case, with our help you avoid costly mistakes and achieve the best possible result!
Take action now:
Call +31 (0)20 6160 120 or email us. The first advice is FREE
Example of a settlement agreement
Order the editable sample settlement agreement below.
Sample employee letter
Your employer wants to terminate your employment contract and offers you a settlement agreement in this regard. What is a wise response to that offer? We have prepared a sample letter for your initial response. Using the sample letter, you remain available for work and thus retain your right to wages. You also request time to respond to the employer's dismissal proposal and to seek advice.
Order the sample letter below.
