The three main types of employment contract in The Netherlands are the fixed temporary, indefinite and temporary contract. Of course, it might be obvious what each contract can entail just by the name. However, there is a lot of information one must know about the benefits of each contract. Firstly, the working hours in The Netherlands for a full time employee can range from 36 hours to 40 hours a week, but if you have a part time contract, you can work between 12 to 36 hours per week.
Unfortunately, The Dutch Government doesn't require companies to give their employees national holidays off. While this might be devastating news for you to hear, there are some secondary benefits that you get just by working in The Netherlands. These include:
- Travel reimbursement: travelling to work normally is covered by your company in The Netherlands, some companies cover the full cost of transport but others only cover a certain percentage.
- Relocation costs: some companies will pay for your relocation costs which can include visa fees if you are coming from a non-EU country..
- Thirteen month salary: a thirteen month salary is when an employee gets an extra paycheck that is equal to their monthly salary.
- Coverage of training and study: some companies, if not most, cover training costs for their new employees.
- Flexible working hours: companies in The Netherlands are normally very flexible about working hours, especially if you are a student working a part time job or doing an internship.
- 30% Ruling: If you qualify as a highly skilled migrant, you may be eligible for the 30% tax ruling.
Make sure you are able to read and dissect your employment contract once you have gotten a job in The Netherlands. Many employment contracts in The Netherlands are of course in Dutch, and it may be wise to have an employment lawyer look over the contract before you sign it to spot anything of interest you may have missed. Normally, if you have landed a job in The Netherlands, it is likely that you have received a temporary contract., which can eventually lead to a permanent one. So, what are the differences between these employment contracts in The Netherlands?
What is a Fixed Term Contract in The Netherlands?
What is a fixed term contract in The Netherlands? A fixed term contract is when the employer sets a date for when your contract ends at the company. For example, if both parties have agreed on a fixed term contract of exactly one year, starting August 1st of 2022 then your contract will end August 1st 2023. However, a fixed contract can always be renewed or extended when the employee or employer is happy with their performance and want to stay longer.
Under Dutch law a fixed term contract in The Netherlands can be renewed up to three times and can’t be longer than a period of 36 months. If the employment agreement lasts longer than three months then it can be considered as an employment contract with an indefinite time period. According to Dutch law an employer can only terminate a fixed term contract by giving notice to the employee after consulting and being granted permission by the Employee Insurance Agency. Additionally, it can also be terminated by the cantonal court in specifc circumstances, which can lessen the notice period to one month. Furthermore, a fixed term contract in The Netherlands can be terminated if both parties, employee and the employer, agree mutually and it is written in paper.
What is a Temporary Contract in The Netherlands?
A temporary contract in The Netherlands, also known as “tijdelijk contract”, is an agreement that you and your employer will work together for a duration of six months to a year. When you and your employer have reached an agreed end date for your contract, the employer can either let you go, offer an extension contract, or in most cases after working at a company for a certain amount of time, a permanent contract.
Furthermore, if you are a student doing an internship, you will be offered a temporary contract in The Netherlands that can lead to a permanent spot at the end of your temporary contract at the company. This is usually as companies do not want to train a new employee which can be a waste of time and money for many.
What is a Indefinite Contract in The Netherlands?
An indefinite contract, also known as a permanent contract, means that you will be working at the company for an indefinite period of time unless two things happen. Either you resign, which in most cases is a month’s notice to tell the employer so they have time to find someone to replace you. Or, your employer fires you but this has to be for a valid reason which must abide by strict legal requirements.
There are of course more types of employment contracts in The Netherlands. For example, most students that obtain a job with flexible working hours will have a zero hour contract which means your employer has no minimum hours they need to let you work. This gives more flexibility but at the cost of a lower income, depending on your age. If you are 18 years old you will probably earn minimum wage, which increases the older you get. Additionally, for internships you earn a lot less than what one would earn under an indefinite contract as it is required to have a stable income.
To conclude, employment contracts in The Netherlands can vary a lot, depending on what kind of jobs you want to apply for, and whether the company is a start up, local or international company which is why your employment contract can vary in the sense of employee benefits. Most starting monthly salaries in The Netherlands when working under your first indefinite contract at a company would be around 1200 euros month but in most companies in The Netherlands, the salary increases per year - the longer you stay, the more you earn per year. Overall, always make sure to read every detail of your employment contract once you land a job in The Netherlands. Good Luck!
Frequently Asked Questions
-
Why do temporary contracts often lead to permanent contracts?
-
How many times can a fixed term contract be renewed in The Netherlands?
-
How can a permanent contract be ended early?
Temporary contracts often lead to permanent contracts becuase companies do not want to waste time and money training a new employee when they can hire some internal who is qualified and already knows the company.
Under Dutch law a fixed term contract in The Netherlands can be renewed up to three times and can’t be longer than a period of 36 months. If the employment agreement lasts longer than three months then it can be considered as an employment contract with an indefinite time period.
A permanent contract be ended early if either you resign, with in most cases a month’s notice, or if your employer fires you for a valid reason which must abide by strict legal requirements.