Background Checks

During the pre-employment phase, only personal data specifically required for the position can be screened. Standard screening procedures are generally not permitted. Extraordinary personal data of candidates may only be screened if there are exceptional requirements for the vacancy that make such screening necessary.

Verification and New Hire Reporting

Employers must:

• Verify Employee Identity: Ensure the authenticity of identification documents .
• Report New Hires: Register new employees with the Dutch Tax Administration and social security authorities

Onboarding Process & Documentation

Employers must collect and verify essential documents from new hires, including:

• Valid ID or passport.
• Work Permits: For non-EU/EEA employees.
• Relevant qualifications and certificates

Healthcare

• Health Insurance Act (Zorgverzekeringswet): This act mandates that all residents have basic health insurance, which covers essential medical services such as hospital care. Private health insurers implement this act, operating under a system of regulated competition. Insurers are typically non-profit cooperatives, ensuring that any profits are reinvested to lower premiums or improve services.
• Long-Term Care Act (Wet langdurige zorg): The Long-Term Care Act focuses on providing care for individuals with chronic illnesses, disabilities, or those requiring long-term care. It is administered by special long-term care administrators and supported by various organizations such as the Care Assessment Agency.
• Social Support Act (Wet maatschappelijke ondersteuning): This act provides various forms of social support, including assistance with daily activities and community services. Local municipalities are responsible for implementing this act, ensuring that residents receive the necessary support and care.
• Youth Act (Jeugdwet): The Youth Act governs youth care services, focusing on the well-being and development of children and adolescents. Local authorities are tasked with providing these services, often in collaboration with healthcare providers.

Retirement

The Dutch pension system is structured into three main pillars:

• State Pension (AOW): The Algemene Ouderdomswet (AOW) is the state pension system, providing a basic income linked to the statutory minimum wage. Every resident who has lived or worked in the Netherlands for at least 50 years before reaching the AOW pension age is entitled to this pension. The full AOW pension is calculated based on the number of years one has been insured, with each year contributing 2% towards the full pension. Married or cohabiting couples each receive 50% of the minimum wage, while single individuals receive more than 70%.
• Occupational Pension: Occupational pensions are offered by many employers and are typically defined contribution plans. These pensions are accumulated through employment and are calculated based on salary and years of service. Employers and employees both contribute to these pension schemes, which are managed by pension funds or insurance companies.
• Private Pension Plans: Individuals can make voluntary contributions to private pension funds to supplement their state and occupational pensions. These plans offer additional security and flexibility for retirement savings.
• The New Pension Act: Effective from July 2023, the Future Pensions Act aims to make pensions grow faster and more personalized. It introduces a shift from defined benefit plans to defined contribution plans, ensuring that pension benefits are more closely linked to investment returns. The transition to the new system is expected to be completed by January 2028.

Social Security

While the Netherlands does not have a social security organization, they do have the Ministry of Social Affairs and Employment. Click here to learn more.

Employment Contract Details

Employers must provide written details on key terms like names, work location, job description, hiring date, probationary period, contract duration, vacation rights, salary details, working hours, pension scheme, overtime conditions, and applicable agreements.

Contract Types

• Fixed-term: Specific period.
• Open-ended: Unspecified period.
• Conversion: Fixed-term contracts convert to open-ended if:

o They cover 36 months or more.

o There are three consecutive fixed-term contracts.

Chain Rule

• A series of fixed-term contracts with no more than six months in between is considered a chain.
• The interval can be shortened to three months for seasonal work

Probation Period

Probationary periods are typically defined by collective agreements and employment contracts. The standard practices are:

• Indefinite Contracts: Maximum of 2 months’ probation.
• Temporary Contracts under 6 months: No probation period allowed.
• Temporary Contracts of 6 months to 2 years: Maximum of 1 month probation.

Visas

• Short-Stay (Type C): Up to 90 days for business, tourism, etc.
• Long-Stay (MVV, Type D): For work, study, or family reunification.
• Specialized Visas:
  • Highly Skilled Migrant
  • Entrepreneur Visa
  • EU Blue Card
  • Transit Visa
• Process: Apply via IND or consulate, submit documents, attend appointment, await decision.
• Post-Arrival: Register with municipality, collect residence permit, open bank account.

Independent Contractors

From July 2025, the Act to Clarify Employment Relationships and Presumption of Employment will come into force. Key aspects include:

• If an individual’s hourly rate is below €32.24($36.59 USD), there is a legal presumption of an employment contract.

Independent contractors operate on a contractual basis, providing services to various clients without long-term commitments. They must:

• Independent contractors are responsible for their own taxes and must adhere to Dutch tax laws.
• Depending on their country of residence, contractors may need specific permits to work in the Netherlands.
• Independent contractors enjoy flexibility in work hours and the ability to work for multiple clients. However, they must manage their own insurance, retirement plans, and equipment

Paid Time Off

Full-time employees typically receive 20 working days of paid annual leave per year. However, it is common for employers to offer 25 or even 32 days.

Additionally, any unused leave from the previous year must be used by July, and employers are required to notify employees if their statutory minimum leave is about to expire.

Public Holidays

Public holidays falling on weekends are lost. Public holidays are not necessarily a paid leave day, as this depends on the employer’s policy or collective labor agreement (CLA)

• New Year’s Day
• Good Friday (Applicable depending on company policy/per CBA)
• Easter Sunday
• Easter Monday
• King’s day
• Ascension Day
• Whit Sunday
• Whit Monday
• Christmas Day
• 2nd Day of Christmas

Bereavement

At this time, Vensure does not have bereavement details available.

Maternity Leave

Pregnant employees are entitled to 16 weeks of paid maternity leave, divided into prenatal and postnatal periods. Prenatal leave consists of 4-6 weeks before the expected due date, while postnatal leave covers the remaining 10-12 weeks starting from the child’s birth.

Maternity pay is 100% of the employee’s daily wage based on the previous year’s average earnings, capped at €256.54($291.13 USD) per day. Employers make the payment but can reclaim a portion from the Employee Insurance Agency (UWV).

If pregnancy or childbirth results in incapacity for work, the employee is eligible for benefits equivalent to 100% of her salary for up to a year after birth.

Paternity Leave

Partners are entitled to 1 week of paid birth leave, which must be taken within the first 4 weeks after the birth. This applies to both full-time and part-time workers and can be used in one block or spread over the 4 weeks.

Additionally, partners can take up to 5 weeks (25 days) of Extended Partner Leave within the first 6 months following birth. This leave can also be taken in one block or spread over the 6

months. While Extended Partner Leave is unpaid, workers may be eligible to claim up to 70% of their pay from the Employee Insurance Agency (UWV).

Parental Leave

Parents can take up to 26 times the length of their working week off for childcare. The first 9 weeks must be used within the child’s first year and are paid by the Employee Insurance Agency (UWV) at up to 70% of their daily wage, capped at €256.54($291.13 USD) per day.

The remaining 17 weeks are unpaid unless specified otherwise in a Collective Labor Agreement or Employment Contract and can be used until the child turns 8 years old.

Sick Leave

If an employee is unable to work due to illness, the employer is required to pay at least 70% of their last wages plus holiday allowance for up to two years. The exact percentage depends on the employment contract and/or CLA provisions. It is common to pay 100% of the wages during the first year of illness.

• During the first year, the employer must pay 70% of the employee’s regular wages, capped at 70% of the Dutch maximum premium wage. If this amount is less than the minimum wage (€1,995 ($2,263.98 USD) per month as of July 2023), a supplement is required to meet the minimum wage.
• In the second year, the employer continues to pay 70% of the regular wages, without the need for a supplement if the amount is below the minimum wage. Most CLAs stipulate paying 100% of the salary in the first year and 70% in the second year.

Termination Requirements

At this time, Vensure does not have termination requirement details available. For Notice Requirements, see below.

Notice Period

Duration for notice periods generally increases with the length of employment. For employees who have worked:

• Less than 5 years: 1 month
• 5 to 10 years: 2 months
• 10 to 15 years: 3 months
• Over 15 years: 4 months

Severance Pay

Upon termination, employees may be eligible for a transition payment, calculated based on length of service.

• An employee is entitled to one-third of their monthly salary per year of service.
• Applications for unemployment benefits should be submitted promptly following the end of employment.

Unemployment Insurance

Unemployment benefits are provided under the Werkloosheidswet (WW), or Unemployment Act. Here are the key points:

• To qualify for unemployment benefits (WW-uitkering), the employee must have worked at least 26 weeks in the 36 weeks before becoming unemployed.
• The employee must apply for unemployment benefits through the Employee Insurance Agency (UWV). Applications can be submitted online via the UWV website.
• Unemployment benefits provide temporary income until they find new employment. The amount they receive depends on their previous earnings and is subject to certain caps.
• Duration of the benefits varies based on your employment history. Generally, the longer you have worked, the longer you can receive benefits

Anti-Discrimination Practices

The Dutch Equal Treatment Act prohibits discrimination on various grounds including religion, personal beliefs, political opinion, race, sex, nationality, sexual orientation, and civil status. Additionally, specific employment laws prohibit discrimination based on age, disability, chronic illness, type of employment contract, and working hours. Employers must ensure equal treatment in all aspects of employment, from hiring to promotions and dismissals.

The Dutch Equal Treatment Act also prohibits harassment and sexual harassment. Employers are obligated under the Working Conditions Act to prevent harassment in the workplace and can face administrative fines and liability for damages if they fail to do so.

Employers must ensure equal pay for men and women performing comparable work. Legislation is being developed to enforce pay transparency and prevent wage differences based on gender. Large companies may be required to obtain certification showing they pay men and women equally.

Workplace Safety Standards

We must ensure a safe working environment complying with Dutch health and safety regulations. Regular risk assessments should be conducted, and employees must be informed about their health and safety rights and obligations.

Employee Well-being Initiatives

Programs to support both mental and physical well-being are encouraged, promoting a healthier and more productive workforce.

Workers’ Compensation

If an employer is found liable for an employee’s injury, the compensation is calculated based on the actual damage suffered. This involves comparing the situation with and without the accident to determine the extent of the damage.

Labor Law Sanctions

Working Conditions Act (Arbeidsomstandighedenwet): Ensures safe and healthy working conditions.

Working Hours Act (Arbeidstijdenwet): Regulates working hours and rest periods.

Foreign Nationals (Employment) Act (Wet arbeid vreemdelingen): Governs the employment of foreign nationals.

Minimum Wage and Minimum Holiday Allowance Act (Wet minimumloon en minimumvakantiebijslag): Sets minimum wage standards and holiday allowance.