Hiring in the Netherlands
PEO & Employer of Record Netherlands Services
Without creating a formal corporation, INS Global assists businesses in hiring staff in the Netherlands. While the new recruits and headquarters teams concentrate on your business objectives, the Global PEO manages all of the workers’ human resources, benefits, payroll, and tax obligations.
Establishing a subsidiary or branch office is not usually the best course of action when employing staff in the Netherlands since it is sometimes a drawn-out and costly procedure. In particular when beginning a business in a foreign nation, using a Professional Employer Organization (PEO) or Employer of Record (EOR) is a quicker and often more efficient choice.
How it operates in the Netherlands: PEO and EOR
A business or organization known as an Employer of Record (EOR) or Professional Employer Organization (PEO) is legally responsible for paying workers and managing their taxes, benefits, and insurances. We provide you specialized payroll, HR, and compliance services in our capacity as the EOR/PEO of your European or Dutch workers. By using this architecture, we lessen all the difficulties associated with starting up a foreign business, dealing with compliance concerns, and creating employee contracts in another language.
The personnel are hired on your behalf by Global PEO Services, who contracts with them lawfully via our subsidiary in compliance with Dutch labor rules. Therefore, it is our responsibility to ensure compliance, and the workers may start working for your business in a couple of days. PEOs/EORs provide you a simple way to hire staff, explore markets, and meet the expanding demands of your company in the Netherlands. You may gain control with Global PEO Services without assuming any legal entity obligations, contractor risks, compromising talent, or delaying your time to market.
Contracts for Employment in the Netherlands
A verbal or written employment contract may be implemented by both employers and workers. However, within a month of the start of employment, employers are required to provide a formal contract that contains the following:
wages and salaries
Work schedule Job description
Location of Work Contract Start and End Dates
length of the trial period
advantages of a pension, and specifics of the collective bargaining agreement, if one exists.
The majority of contracts include a trial period, while companies are not required to do so. Depending on the kind of contract, probationary periods in employment contracts and collective bargaining agreements often last 1 to 2 months.
Employers are not permitted to engage the same person twice in a row to satisfy their needs for temporary labor. The next contract must be a permanent one after two years of temporary agreements. If there is a minimum interval of 6 months between the 2 contracts, it is only feasible to prohibit a move from a temporary to a permanent contract. If not, it is regarded by law as a single contract with consecutive days.
Benefits for employees in the Netherlands
The legal retirement age in the Netherlands is now 66 years old and will increase to 67 years and 3 months on January 1, 2022. According to the General Old Age Pensions Act, Dutch citizens who attain retirement age are entitled to receive a flat-rate pension payment depending on their net minimum earnings and living circumstances.
The social insurance system, which is funded by both employers and employees, includes a workers’ compensation program that is run by the Work and Income department in accordance with the Labor Capacity Act. In accordance with the Work Plan for the Partially Disabled, a wounded employee is entitled to paid sick leave for up to two years (WGA). An employee will be covered by the Income Provision Plan if it is assessed that they would be unable to earn more than 20% of their pre-injury salary and that there is no hope of recovery.
Through the Institute for Employee Benefit Plans, terminated workers under 65 may be eligible for an unemployment insurance benefit. An ex-employee must have worked for at least 26 out of the previous 36 weeks in order to be eligible for this benefit.