Netherlands Employment Guide

Understanding Dutch Employment Contracts: A Guide for International Employers

When hiring in the Netherlands, it's important to know that Dutch law does not mandate employment contracts to be in Dutch. English-language contracts are legally permissible and widely accepted in the business community, making it easier for global companies like SailGlobal to onboard international talent smoothly.

An employment agreement in the Netherlands must clearly outline several key elements to ensure compliance and clarity. These include:

• Full names of the employer and employee
• Official start date of employment
• Duration of the contract, if fixed-term
• Detailed job title and description
• Conditions under which the contract can be terminated

Many employers, including SailGlobal, adopt a phased approach by starting with fixed-term contracts. This allows both parties to assess compatibility before transitioning to a permanent arrangement, as terminating employment in the Netherlands can be legally intricate. Under Dutch law, you may issue up to three consecutive fixed-term contracts, provided the total duration does not exceed three years.

Case Example: SailGlobal's Contract Strategy

For instance, SailGlobal often begins with a 12-month contract for new hires in Amsterdam, followed by an extension if performance is satisfactory, ultimately leading to a permanent role after 24 months—well within the legal limits.

Navigating Probation Periods in Dutch Employment

Probation periods in the Netherlands are strictly regulated. For permanent contracts or fixed-term agreements lasting two years or more, the maximum probation period is two months. If the contract is for less than two years but at least six months, a one-month probation period is permitted. It's crucial to note that Dutch law prohibits any extension of probation periods once set.

Consider a scenario where SailGlobal hires a project manager on an 18-month contract. They can legally institute a two-month probation period to evaluate fit, but this cannot be prolonged, emphasizing the need for thorough assessment early on.