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.
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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