Employment law

As an employer, in principle, there is no obligation to offer your employees a pension scheme. This is different if your company falls under the scope of a mandatory sector-wide pension fund. In that case, you must pay premiums to the sector pension fund (Bpf) and the employees accrue pension.
Please consult one of our lawyers to determine if your company falls under the scope of a sector pension fund (Bpf).
If you do offer employees a pension scheme outside the obligation of the sector pension fund, you also have a duty of care if the existing pension scheme is amended. In that case, the appointed Works Council has a right of consent. Moreover, as pension is an employment condition, in changing the conditions for pension the strict labour law rules apply.

Employees on sick leave are entitled to continued payment of wages during the first two years of sick leave.
The law sets out an entitlement amounting to 70% of the salary, with a minimum of the statutory minimum wage. Many employment contracts and collective labour agreements (CLAs) set out that more than 70% is paid out.
The employee’s right to wages is conditional. The employee must cooperate in reintegration and wage sanctions may be imposed for non-compliance. After two years of sick leave, continued payment of wages is no longer mandatory for the employer, unless UWV (the Employee Insurance Administration Agency) has concluded that the employer did not fulfil their reintegration obligations. In that event, the employer may be subject to mandatory continued payment of wages for another period of time, with a maximum of one year.
During the two years of sick leave, a prohibition for termination is applicable. Upon expiry of mandatory continued payment of wages, this prohibition for termination ends.

Under Dutch law, the number of succeeding fixed term employment contracts is limited to three, but the total duration of fixed-term contracts may not exceed three years. The fourth contract or after the three years is automatically for an indefinite term. An interval of six months between contracts breaks the chain of consecutive temporary contracts. Please be informed that deviating arrangements could follow from the applicable CLA (collective labour agreement).

A non-competition clause must always be agreed in writing. In principle, a non-competition clause in a temporary contract is not valid. In exceptional cases, a non-competition clause in a temporary contract can be valid, if specific significant business interests for including this clause are explained in the clause in this specific case (and are actually significant).
In principle, in permanent contracts (non-temporary), the clauses agreed apply and these are binding to the employee. However, a valid clause may still be deemed unreasonable or objectionable. In such an event, the employee may request the court of law to restrict or void the clause.

If you have an indefinite term contract, you can terminate the employment agreement by giving notice taking into account the notice period as agreed upon in your employment contract. This is often the statutory notice period, which is one month for the employee. Notice must also be given at the end of the month. For example: if you want your last day of your employment to be on the 30 of April, you need to give notice ultimately on the 31 of March. Your employment contract may also include a different notice period. Note that if the employee’s notice period is more than one month, the employer’s notice period should be double. The collective agreement may also contain a different notice period.
If you have a temporary employment contract, it is only possible to terminate early if there is an interim notice clause in the employment contract. This clause prescribes the notice period to be observed. Similar as in an indefinite term contract, this can be the statutory notice period of one month or a longer notice period, taking into account the above stated.

The Dutch employment law system for dismissal is protective of employees. In most cases, the employer needs prior permission from the Employee Insurance Administration Agency (UWV) or the court to terminate employment. The employer has to have a reasonable ground for dismissal and redeployment in a suitable position within the company is not possible. Termination during the trial period and summary dismissal (such as in case of fraud or theft by the employee) is an exception to this rule.

A trial period can be agreed upon in writing in the first employment contract. If the employment contract has a duration of six months but less than two years, the maximum trial period is one month. For fixed term contracts with a duration of more than two years or for indefinite term contracts, the maximum duration of the trial period is two months. Trial periods in an employment contract with a duration of less than six months are invalid.

Yes, if the employer terminates the employment contract or does not extend the contract, then you are entitled to the statutory transition compensation (in Dutch: transitievergoeding). This payment amounts to 1/3 of your monthly salary multiplied with the duration of your employment with the employer in question. There is no entitlement to the transition compensation if the termination or non-extension of the contract is a result of grave culpable behaviour from your side.