With its highly educated workforce, strong English proficiency and strong digital infrastructure, the Netherlands is a top destination for European talent.
The only problem? Hiring employees in the Netherlands usually means setting up a local legal entity, registering with the Tax Administration, completing a risk inventory and a whole host of other admin tasks. All of this is time-consuming and expensive, and could mean big delays to your expansion plans. Thankfully, there is a solution that can help you quickly and easily hire in the Netherlands, without a mountain of paperwork: using an employer of record, or EoR.
An employer of record (EoR) is a company that engages workers on behalf of other organisations. They become the legal employer of their client’s workers, which means they take on the responsibility for ensuring labour laws are adhered to and the right taxes are paid.
EoRs also provide various HR services, including assistance with onboarding, training, benefits administration, payroll and more. When you hire workers through an EoR, your workers will get a smooth and consistent HR experience, and your internal team will have the time and energy to focus on your business.
Wherever you are in the world, using a global EoR is an efficient way to hire workers in the Netherlands. You’ll be able to bring the workers you need on board in the knowledge that they’re engaged fairly and compliantly and you won’t have to worry about the complexities of international payroll either.
Your Netherlands EoR provider will be able to help you with things like:
Essentially, working with an EoR in the Netherlands means handing over responsibility for the administrative side of hiring workers, so all you have to focus on is finding the right person for the job.
The rise of remote work means there are now many companies offering EoR services in the Netherlands (and all over the world). If you’re considering working with an EoR in the Netherlands, it’s important to ensure it’s a good fit for your organisation. That means checking whether your chosen Netherlands EoR agency has the necessary compliance knowledge, experience, and team on the ground to support your Dutch employees in their professional journey.
Like all countries, the Netherlands has its own rules and regulations governing what employers can and can’t do. If you want to hire workers in the Netherlands without an EoR service, you’ll need a strong understanding of Dutch labour laws and tax legislation — or you could end up facing fines and legal fees.
In this guide, we’ll take you through some of the basics that you’ll need to familiarise yourself with to hire in the Netherlands, including the different hiring options available, pre-hire checks you can carry out and the requirements for setting up payroll and compensating your employees.
Every country in the world has its own rules, laws, and customs when it comes to hiring employees. Companies wanting to hire in the Netherlands should be aware of the specific situation there before they begin their recruitment journey.
In general, Dutch employment law is centred around strong employee protections, with specific rules that apply to employment contracts, termination, work hours, paid leave and more. There’s also a process that employers need to follow to hire employees in the Netherlands, which we’ll discuss in detail below.
The Dutch government has put together some guidelines outlining the steps employers need to take to compliantly hire in the Netherlands. Companies hiring foreign workers in the Netherlands (or hire in the Netherlands from abroad) may have to meet additional requirements.
Here are the 12 things you’ll have to do to hire employees in the Netherlands:
All businesses want to know if they can trust the people they employ. In the Netherlands, there are certain background checks that you can carry out as an employer to help establish if potential candidates are trustworthy.
First, it’s a good idea to conduct a basic reference check on anyone you’re considering employing. Employers can do this by calling the references provided by the candidate. Getting the candidate’s permission before doing this is good practice.
If the person you’re hiring is not a Dutch or EU citizen, you’ll also need to perform a visa check to make sure they have the right to work in the Netherlands. And, as we mentioned in the section above, employers in the Netherlands must carry out identity verification checks on all employees by verifying an original ID document and filing a copy.
Business owners in the Netherlands can also create blacklists of people they no longer want to do business with, for example because they have stolen from them. There are strict rules around sharing these blacklists with others, but there is a public register of approved blacklists that employers can access. Checking whether a potential employee’s name appears on a blacklist is another employee background check you could perform in the Netherlands.
A Declaration of Conduct (Verklaring omtrent het gedrag, VOG) is a document proving that a person hasn’t committed any criminal offences. VOGs are obligatory employee background checks for some jobs in the Netherlands, including teaching, childminding, and driving a taxi. They’re also mandatory for people who deal with confidential information, work with vulnerable people, work with money or valuable goods, or work for the government.
If a Declaration of Conduct is not necessary for a particular role, employers in the Netherlands can still ask potential employees to provide one. Applying for a VOG is a simple process, which involves filling in a form and submitting it to the relevant municipal authority.
For jobs that require security clearance at a confidential level, employers in the Netherlands might need to apply for a ‘declaration of no objection’ (verklaring van geen bezwaar, VGB). This is a certificate issued by the Dutch intelligence agency, the AIVD.
As in many countries, there are some limitations on employee background checks in the Netherlands. For example, employers can’t ask potential employees for information about their health. Background checks in the Netherlands must also comply with the European General Data Protection Regulations (GDPR). That means that employers can only store and process data that’s directly relevant to the role in question.
Employers who want to hire workers in the Netherlands need to know what hiring options are available to them. Specifically, they should understand the differences between employees and independent contractors according to Dutch employment law. Employers who don’t fully understand this distinction are at risk of fines and legal penalties for misclassifying employees.
In the Netherlands, there are three main types of employment arrangements that you should be aware of:
In the Netherlands, freelancers are referred to as zelfstandige zonder personeel, or zzp’ers. This isn’t a legal structure, but refers to self-employed professionals who register their own business and are responsible for finding their own clients. Many zzp’ers operate as sole proprietors (eenmanszaak), while others choose to use a different legal structure like a private limited company (bv).
In Dutch employment law, whether or not someone is considered to be employed or self-employed depends on the actual relationship that exists between them and their employer. That means that someone could be judged to be an employee even if you have taken them on as a zzp’er.
When you’re weighing up hiring options in the Netherlands, you should consider whether the working relationship you have with a worker will be considered employment rather than just the type of contract you want to give them.
To determine whether someone is an employee in the eyes of the law, employers in the Netherlands should consider the following questions:
Generally speaking, workers who are able to organise their own work, can provide a substitute when necessary and are responsible for running their own business are considered to be an independent contractor (self-employed). Dutch law also says that independent contractors may not earn more than 70% of their income from a single client. This rule is designed to prevent ‘disguised employment’ situations, where people who are really employees (and thus entitled to certain benefits and protections) are passed off as independent contractors.
Another hiring option in the Netherlands is to hire temporary staff through intermediaries like temporary employment or secondment agencies. These workers are employees of the agency they are hired through, not the company they work for. Employers that hire agency workers in the Netherlands are required to check whether the supplier they use is listed in the Dutch Business Register (Handelsregister).
There is no specific language requirement in the Netherlands for employment documents. However, employers must make sure that employees understand the terms and conditions of their employment.
Employees generally don’t need to speak Dutch to work in the Netherlands, although it can be useful. The exception is when the work involves hazardous tasks, such as the operation of a crane or the removal of asbestos. In these cases, workers need to have an adequate command of the Dutch language to prevent accidents and ensure that work is carried out safely.
People working in the Netherlands who want to apply for a permanent residence permit need to obtain a civic integration diploma, which requires a certain level of competency in the Dutch language. The required language level is different depending on the person’s situation, but it’s always between A2 and B1 on the Common European Framework of Reference for Languages (CEFR).
Immigrants to the Netherlands who want to become naturalised Dutch citizens also need to pass the civic integration requirement as described above. With the civic integration diploma, it’s possible to apply for naturalisation.
To hire in the Netherlands, it’s usually necessary to establish a corporate presence by setting up a local business entity. The most common types of entities are the private limited liability company (Besloten Vennootschap) and the public limited liability company (Naamloze Vennootschap). These are known as bv or nv, respectively.
A business that wants to hire and pay employees in the Netherlands first has to register as an employer. This is an online process done on the Dutch government website. Once you have registered, you will receive:
Most employers in the Netherlands also have to pay insurance contributions for their employees. If this is the case, you will also receive:
In the Netherlands, employees are required to withhold payroll taxes from the wages they pay their employees. Payroll taxes include:
Each payday, employers have to calculate how much to withhold, file a tax return and then pay these taxes to the Dutch tax authorities. They must also keep up-to-date records on their payroll, and provide employees with payslips and annual income statements.
All businesses incorporated in the Netherlands have to pay corporate income tax (vennootschapsbelasting) on their taxable profit each financial year (which is the same as a calendar year in the Netherlands). As of 2024, the corporate income tax rates are:
Hiring employees in the Netherlands usually means setting up a legal entity, which can be costly and time-consuming. Employers can avoid this hassle by working with an Employer of Record (EoR), like CXC.
Through our EoR solution, you can confidently hire employees in the Netherlands, without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.
To legally hire employees in the Netherlands, employers must register as an employer where Dutch payroll-tax obligations apply, verify the employee’s right to work, the written employment information required under Dutch law, register for payroll taxes and comply with Dutch employment laws. Employers should also determine whether a collective labour agreement (CAO) applies to the role, as this may set minimum employment conditions. They must also check whether participation in a mandatory sectoral pension fund is required.
For businesses hiring directly, the process typically involves:
The employee normally obtains their own BSN by registering with the municipality or the Non-residents Records Database; the employer records it in the payroll administration. If the employee is a non-EU, EEA or Swiss national, employers must also confirm whether a work or residence permit is required before employment begins.
International companies that do not have a Dutch legal entity often choose to hire through an Employer of Record (EOR). An EOR employs the worker on the company’s behalf, manages payroll and statutory employment obligations, and enables businesses to hire in the Netherlands without establishing a local entity.
Hiring employees in the Netherlands does not have a fixed statutory timeframe for employers that already have the necessary employer and payroll registrations, payroll registration and a candidate with the right to work. The timeline includes preparing the employment contract, completing onboarding and registering the employee for payroll. It can also be affected by the employee’s BSN, payroll cut-off dates, CAO and pension checks and any required background or occupational-health processes.
For non-EU, EEA and Swiss nationals, hiring usually takes longer because a residence or work permit may be required. Employers using the highly skilled migrant scheme must first be recognised as a sponsor by the Immigration and Naturalisation Service (IND) before submitting the application. Immigration approval should be factored into the planned start date. The statutory IND decision period for recognition as a sponsor is three months. A highly skilled migrant application generally has a statutory decision period of 90 days, although the IND aims to decide complete applications submitted by recognised sponsors considerably faster, often within two weeks. These are processing targets rather than guaranteed onboarding dates.
A foreign company can employ personnel directly in the Netherlands without necessarily incorporating a Dutch legal entity. Depending on the circumstances, it may register as a foreign employer with the Dutch Tax Administration and operate Dutch payroll. A Dutch branch or permanent establishment may trigger additional registration and tax obligations. An EOR already has the required employing infrastructure in place and can often onboard employees within a shorter operational timeframe than entity establishment, allowing businesses to enter the Dutch market much faster while managing employment contracts, payroll, statutory benefits and local compliance.
The fastest way to hire employees in the Netherlands is through an Employer of Record (EOR). An EOR already has an employing and payroll structure in place, allowing businesses to hire employees without first establishing a local company, registering with the Dutch Tax Administration or setting up Dutch payroll. In many cases, employees can be onboarded within a relatively short period, provided all required employment documents and right-to-work checks have been completed. The actual timeframe depends on payroll cut-offs, the employee’s BSN, CAO and pension obligations, immigration status and the complexity of the role.
Where the client recruits the worker and exercises day-to-day supervision, the arrangement may qualify as Dutch payrolling. In that case, the payroll employee is generally entitled to at least the same employment conditions as comparable employees working directly for the client and must have an adequate pension arrangement
For businesses hiring through their own Dutch entity or as a registered foreign employer, the recruitment process can be accelerated by:
If the employee requires a Dutch work or residence permit, employers should confirm the appropriate immigration route before agreeing on a start date. For example, employers using the highly skilled migrant scheme must be recognised as a sponsor by the Immigration and Naturalisation Service (IND) before submitting an application.
Companies may consider EOR services in the Netherlands when they need to recruit before establishing a Dutch entity, test market demand, employ a specialist or support a short-term project. The model can be particularly useful where the business expects only a small initial workforce.
An EOR may also help an international HR team manage Dutch contracts, payroll, holiday, sickness absence and employee questions without building a local infrastructure immediately. It can provide a structured route while the company decides whether a permanent subsidiary is commercially worthwhile.
The model may be less suitable where the business expects substantial headcount, needs a Dutch entity for customer or regulatory reasons or wants complete control over local employment administration.
The decision should consider headcount, hiring urgency, immigration, tax exposure, expected project duration and long-term operating plans. An EOR should support the company’s strategy, not become a substitute for deciding what the Dutch operation is intended to achieve.
The cost of an Employer of Record in the Netherlands normally combines a recurring service fee with the employee’s salary, employer charges, benefits and any agreed one-off services. Pricing may vary according to headcount, role complexity, immigration support, payroll frequency and the benefits package.
A meaningful comparison should identify whether the fee includes contract preparation, payroll, holiday administration, sickness support, expenses, benefit coordination, immigration assistance and termination work. Some providers charge separately for amendments, off-cycle payments or urgent requests.
Businesses should also consider the cost of alternatives, including entity registration, payroll software, local HR expertise, tax advice and internal management time. For a foreign employer, the alternative may be direct employment through Dutch foreign-employer registration rather than incorporating a Dutch entity.A low monthly fee may not be economical if the service excludes work the company still needs to arrange elsewhere.
Ask how salary changes, bonuses, exchange rates and reimbursable expenses are handled. Also confirm how the provider charges for long-term sickness, occupational-health support, reintegration, immigration applications, mandatory pension participation and termination proceedings. Transparent pricing allows the business to compare an EOR with direct employment and understand how costs will change as the Dutch workforce grows.
An EOR arrangement may include a Dutch employment contract, payroll administration, tax reporting, holiday records, sickness processes, benefits coordination, employee documentation and support with joining or leaving the organisation.
The specific scope of an EOR in the Netherlands depends on the service agreement. Some arrangements may also include immigration coordination, expense processing, pension administration, policy support and assistance with employee queries. Employers should establish whether the service includes occupational-health support, statutory reintegration management and coordination with the company doctor during sickness absence. Dutch employers may have to continue at least 70% of wages for up to 104 weeks and comply with detailed reintegration duties.
The client company normally remains responsible for the employee’s role, supervision, objectives, performance and operational decisions. The EOR should not be treated as a replacement for good management or a clear internal HR owner.
Before signing, confirm what is included, who communicates with the employee, how quickly requests are handled and what happens when the contract changes. Clarify whether collective labour agreements, sickness cases, bonuses and termination support attract additional fees.
A useful EOR provides practical local administration while keeping the division of responsibilities understandable to both the client and the employee.
An Employer of Record (EOR) in the Netherlands supports compliance by becoming the legal employer and managing employment in line with Dutch labour laws. This includes preparing Dutch-compliant employment contracts, processing payroll and tax withholding, administering statutory leave and sick pay, identifying applicable collective labour agreements (CAOs), and managing employment documentation throughout the employee lifecycle.
An EOR also helps employers meet ongoing employment obligations, including:
While the EOR becomes the legal employer, your business continues to direct the employee’s day-to-day work, set performance expectations and manage business operations. This allows companies to expand into the Netherlands without establishing a local employing entity while supporting compliance with Dutch employment requirements.
For international employers, this is particularly valuable because Dutch employment law is influenced not only by legislation but also by collective labour agreements, which can introduce additional obligations relating to pay, working hours, leave, pension and notice periods. An experienced EOR monitors these requirements and applies them throughout the employment relationship.
When choosing an EOR in the Netherlands, look for a provider with proven experience in Dutch employment law, payroll administration and collective labour agreements (CAOs). The provider should be able to employ workers legally in the Netherlands, manage payroll accurately and keep pace with changes to Dutch employment legislation.
Before selecting an EOR, employers should consider:
Companies should use the Dutch Chamber of Commerce Waadi check to confirm that a personnel supplier is registered correctly. Both the supplier and the company hiring workers may be fined if the registration requirements are not met.
As of July 2026, the Netherlands is also preparing a mandatory authorisation system under the Provision of Personnel Accreditation Act (Wtta). It is expected to enter into force on 1 January 2027, with Labour Authority enforcement expected from 1 January 2028. Companies selecting a long-term provider should assess its readiness for this regime, while recognising that the implementation timetable may still change.
For international employers, it is also worth understanding whether the provider supports only the Netherlands or can manage employees across multiple countries. Using one global EOR partner often provides a more consistent experience for HR teams and employees than working with different local providers. Global coverage should not replace evidence of appropriate Dutch registrations, local expertise and operational capacity.
The right choice is the provider that fits the workforce plan, risk profile and expected level of local support.
An Employer of Record in the Netherlands becomes most valuable when it helps businesses expand into the Dutch market without having to build local HR, payroll and employment expertise from the ground up. Instead of independently managing every aspect of Dutch employment laws, collective labour agreements (CAOs) and payroll requirements, businesses can rely on local specialists to manage employment administration while they focus on growing their operations.
For international employers, this also creates a more consistent experience for employees. An experienced EOR manages employment contracts, payroll, statutory benefits, leave administration and ongoing employment changes in line with Dutch requirements, while helping employers keep pace with changes to local legislation and collective agreements.
As a business grows, the value of an EOR extends beyond compliance. Having one local employment partner simplifies onboarding, employee support, payroll administration and workforce management, particularly for organisations hiring across several countries. It also gives employers the flexibility to expand quickly while deciding whether establishing a Dutch entity or employing directly through foreign-employer registration is the right long-term strategy.
CXC Global provides Employer of Record services in the Netherlands, helping businesses hire employees quickly without establishing a Dutch legal entity. CXC supports compliant employment contracts, onboarding, payroll administration, tax withholding, statutory benefits, leave administration, employment lifecycle changes and ongoing compliance with Dutch employment laws and applicable collective labour agreements.
With more than 30 years of global workforce experience, CXC combines local employment expertise with the capability to support international workforce expansion. Whether you are hiring your first employee in the Netherlands or building a larger team, our local specialists help ensure your employees are onboarded compliantly and supported throughout their employment.
When you partner with CXC, you benefit from:
Your business continues to manage the employee’s day-to-day work and business objectives, while CXC manages the local employment and compliance requirements.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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