Dutch employment contracts: eight essential questions answered

Most questions about a Dutch employment contract come down to one point: much of what governs the relationship is not in the document at all. Employment law in Book 7 of the Dutch Civil Code (Burgerlijk Wetboek, BW) is largely mandatory, a collective labour agreement (cao) may apply even if the employer is not a member of the signatory association, and a clause that departs from either to the employee’s disadvantage is in principle void.

Three things follow. A written contract is not a condition for validity: an employment contract exists as soon as someone performs work for pay in a relationship of authority (Article 7:610 BW). The employer must, however, give the employee written information about the essential terms within the statutory period, and the absence of a document does not weaken the employee’s position. Several clauses are only valid under strict conditions: a probationary period is void in a contract of six months or less, a non-competition clause requires writing and, in a fixed-term contract, a written statement of the compelling business interests that justify it, and a clause restricting outside work needs an objective justification. And a contract cannot simply be changed after signature: without a unilateral amendment clause, the employer must make a proposal that is reasonable in the circumstances, and the employee only has to accept it if acceptance can reasonably be required.

1. What is an employment contract?

An employment contract (arbeidsovereenkomst) is an agreement in which the employee performs work for the employer, for pay and for a certain period (Article 7:610 BW). The decisive element is the relationship of authority: the employer can give instructions about the work.

What the parties call their contract is not decisive. A court looks at all the circumstances, including how the parties actually worked together. In the Deliveroo judgment (Supreme Court, 24 March 2023, ECLI:NL:HR:2023:443) the Supreme Court confirmed that riders working as “freelancers” were in fact employees. That matters, because an employee has rights that a self-employed contractor does not: continued pay during illness, protection against dismissal, holiday entitlement and the minimum wage.

The contract is only part of the picture. Mandatory law, the applicable cao and the staff handbook also determine the rights and obligations. Many cao’s are declared generally binding by the Minister of Social Affairs and Employment; they then apply to all employers in the sector, members or not.

2. What should be included in an employment contract?

The contract, or the written information the employer must provide, must at least contain the essential terms listed in Article 7:655 BW. Other clauses, such as a probationary period or non-competition clause, are optional but must meet strict conditions.

Which information is mandatory?

Under Article 7:655 BW, the employer must provide the employee with written or electronic information on at least:

• the names and addresses of the employer and the employee;
• the place or places of work;
• the job title or a description of the work;
• the start date and, for a fixed-term contract, the end date;
• the duration and conditions of any probationary period;
• the salary, its components and the frequency of payment;
• the normal working hours, and for variable hours the reference hours and days;
• holiday entitlement and the notice periods;
• any applicable cao and pension scheme.

Most of this information must be provided within seven days of the start of work; some items, such as the pension scheme and training entitlement, within one month. You can read more about the obligations for employment contracts in the Netherlands, including for remote work.

Which optional clauses are common?

Beyond the mandatory information, contracts often contain clauses that protect the employer’s interests. The most common are:

• a confidentiality clause;
• a non-competition clause (concurrentiebeding) or non-solicitation clause, which must be in writing (Article 7:653 BW);
• a clause restricting outside work, which is only valid with an objective justification (Article 7:653a BW);
• a penalty clause, which must be in writing and meet the requirements of Article 7:650 BW;
• a unilateral amendment clause (Article 7:613 BW);
• arrangements on performance reviews, bonuses and expenses.

3. How do you review and understand your employment contract?

Read every clause, check the financial terms against the cao and the law, and pay special attention to the clauses that restrict you, such as a non-competition clause. Do not sign under time pressure; ask for an explanation or legal advice if something is unclear.

Which steps should you take before signing?

A careful review takes more than a quick read. Go through the contract systematically:

• read every section, including references to the staff handbook, the cao and other documents;
• check the salary, bonus, holiday allowance (by law in principle 8% of the gross salary) and expense arrangements;
• check the type of contract, the probationary period and the notice periods;
• check the job description and the place of work, including any arrangements on working from home;
• check whether the salary is at least the statutory minimum wage and in line with the cao.

Which clauses deserve extra attention?

Clauses that restrict you after the contract ends, or that allow the employer to change the terms, deserve the closest scrutiny. They can have a significant effect on your future career.

A non-competition clause can prevent you from working for a competitor for a period after leaving. It is only valid if agreed in writing with an adult employee. In a fixed-term contract, it is only valid if the employer explains in writing which compelling business interests require it. A court can annul or limit the clause if the employee is unfairly disadvantaged (Article 7:653 BW). A confidentiality clause and a penalty clause are also important, as is a unilateral amendment clause.

4. Which types of employment contract are there?

The main types are the permanent contract, the fixed-term contract, the on-call contract and the agency contract. Each type offers a different level of security.

What are the main contract types?

Dutch law recognises several contract structures:

• Permanent (indefinite-term) contracts: the contract continues until it is terminated; the employer can only dismiss with a statutory ground and through the prescribed route.
• Fixed-term contracts: the contract ends automatically at the agreed date. Under the chain rule (ketenregeling) of Article 7:668a BW, a permanent contract arises after more than three consecutive fixed-term contracts, or after more than three years, unless there is a gap of more than six months between contracts.
• On-call contracts: contracts without fixed hours or with a minimum number of hours. Under Article 7:628a BW, the employer must call the employee at least four days in advance and pay at least three hours per call. After twelve months, the employer must offer a contract with fixed hours based on the average of the previous year.
• Agency contracts (uitzendovereenkomst): the employee is employed by an agency and works for a client. Agency workers are in principle entitled to the same pay as comparable employees of the client.

More about fixed-term contracts can be found in our fixed-term employment contract guide.

A fixed-term contract of six months or more requires the employer to inform the employee in writing at least one month before the end whether the contract will be continued, and on what terms (Article 7:668 BW).

Note that legislation on flexible work is changing. The Act on more security for flexible workers (Wet meer zekerheid flexwerkers) was adopted by the Senate in July 2026; its entry into force is still to be set by Royal Decree. Among other things it tightens the rules on on-call contracts and the chain rule. Check the current rules before concluding a new contract.

5. What happens if an employment contract is breached?

If a party does not meet its obligations, the other party can demand performance, claim damages, and in serious cases end the contract. The consequences depend on who breaches the contract and how serious the breach is.

Which breaches occur most often?

Breaches can occur on both sides. Common examples are:

• an employee who does not perform the agreed work or does not follow reasonable instructions;
• an employer who does not pay the salary, or pays late;
• a breach of a confidentiality clause;
• unauthorised disclosure of sensitive information;
• a breach of a non-competition clause after the contract ends.

What are the legal consequences?

For an employer that breaches the contract, the main consequences are claims for performance and damages. An employer that pays the salary late owes a statutory increase of up to 50% of the late amount, plus statutory interest (Article 7:625 BW). A serious breach by the employer, such as persistent non-payment, can be an urgent cause for the employee to resign with immediate effect (Article 7:679 BW), in which case the employee may claim compensation.

For an employee who breaches the contract, the employer can give a warning, impose a disciplinary measure provided for in the contract, or in serious cases dismiss the employee. Summary dismissal is only possible for an urgent cause (Articles 7:677 and 7:678 BW). An employee is only liable for damage caused to the employer in the course of work in case of intent or deliberate recklessness (Article 7:661 BW). A breach of a non-competition or confidentiality clause can lead to a claim for damages or a penalty, if validly agreed.

Read more about resignation and termination procedures to understand the possible outcomes. In the Netherlands there are no separate employment tribunals: employment disputes go to the subdistrict court (kantonrechter), where you can conduct proceedings without a lawyer.

6. Can you change an employment contract after signing?

Yes, but in principle only with the employee’s consent. An employer can only change the terms on its own in two situations: under a unilateral amendment clause with a substantial interest, or if the employee must reasonably accept a reasonable proposal.

Which principles apply to changes?

The starting point is that both parties must agree to a change. Consent does not have to be in writing, but it must be clear; a written record avoids discussion. An employee who simply continues to work after a change is not automatically considered to have agreed to it.

When can the employer change the terms without consent?

There are two routes. First, a written unilateral amendment clause allows the employer to change terms if it has such a substantial interest that the employee’s interest, as affected by the change, must give way according to standards of reasonableness and fairness (Article 7:613 BW).

Second, without such a clause, the employer can make a proposal that the employee must accept if it is reasonable in view of changed circumstances, and acceptance can reasonably be required of the employee. This test comes from the Stoof/Mammoet judgment (Supreme Court, 11 July 2008, ECLI:NL:HR:2008:BD1847). Outside these routes, the employer cannot change essential terms such as salary, working hours or duties on its own.

Our guide on employer rights and obligations gives more insight into the legal side of contract changes. An employee may refuse a proposal that does not pass the Stoof/Mammoet test; record any agreement in writing.

7. How do probationary periods work?

A probationary period (proeftijd) allows both parties to end the contract with immediate effect, without a dismissal ground. It must be agreed in writing, must be the same for both parties, and has a statutory maximum length.

What are the rules?

The rules are in Article 7:652 BW:

• no probationary period is allowed in a fixed-term contract of six months or less;
• a maximum of one month for a fixed-term contract of more than six months but less than two years;
• a maximum of two months for a permanent contract or a fixed-term contract of two years or more;
• a probationary period that does not meet these rules is void as a whole.

During the probationary period, both parties can end the contract immediately, without a notice period and without UWV permission or court involvement. On request, the party ending the contract must give the reason in writing (Article 7:676 BW). A new probationary period is in principle not allowed in a new contract with the same employer, unless the new job clearly requires different skills or responsibilities.

Read our detailed guide on dismissal during probationary periods for more on this. The freedom during the probationary period is not unlimited. Dismissal on discriminatory grounds, such as gender, age, origin, religion or pregnancy, remains prohibited; an employee can have such a termination annulled by the subdistrict court within two months (Articles 7:681 and 7:686a BW).

8. What if you do not have a written employment contract?

A verbal employment contract is valid in the Netherlands. The employer must still give you the essential terms in writing, and the lack of a document does not weaken your position as an employee.

What is the legal position of a verbal contract?

An employment contract exists as soon as the elements of work, pay and authority are present, whether or not anything is signed. The law even helps the employee: under Article 7:610a BW, someone who works for pay for another person for three consecutive months, weekly or at least 20 hours a month, is presumed to have an employment contract. Under Article 7:610b BW, the agreed working hours are then in principle presumed to equal the average of the previous three months.

Written documentation does, however, provide clarity and prevents disputes. Take these steps if you have no written contract:

• ask your employer for the written information required by Article 7:655 BW;
• keep records of all verbal agreements and communications;
• confirm your duties, salary and working conditions in an email;
• seek legal advice to understand your specific rights.

What must the employer provide?

The employer must provide the essential terms in writing or electronically, most of them within seven days after the start of work and the rest within one month (Article 7:655 BW). That information includes the job, the salary, the working hours and the other key terms listed in question 2.

If the employer fails to do so, the contract remains valid. In a dispute about the content, the employer’s failure can count against it. Keep emails, pay slips, schedules and other documents that show what was agreed and how you actually worked. Your pay slip must also show the main salary information (Article 7:626 BW), which is useful evidence.

What should you check as an employee?

Check the contract against the law and the cao before you sign. Clauses that restrict you after you leave deserve most attention.

• Is the salary at least the statutory minimum wage and in line with the applicable cao?
• Is the probationary period valid under Article 7:652 BW, given the contract type and length?
• Does a non-competition clause in a fixed-term contract state the compelling business interests in writing?
• Did you receive the written information of Article 7:655 BW within seven days of starting?
• Does the contract count towards the chain rule of Article 7:668a BW?

What should you check as an employer?

Check that each clause you rely on meets its statutory conditions. A void clause gives you no protection, even if the employee signed it.

• Provide the information of Article 7:655 BW in writing or electronically within the statutory periods.
• Agree a probationary period only where Article 7:652 BW allows it, and in writing.
• Substantiate a non-competition clause in a fixed-term contract in the contract itself (Article 7:653 BW).
• Diarise the one-month notice obligation for fixed-term contracts of six months or more (Article 7:668 BW).
• Track the number and duration of fixed-term contracts against the chain rule.

What can we do for you with your employment contract?

We advise employees and employers on Dutch employment contracts; see also our employment lawyer page.

• We review your employment contract and point out void or risky clauses before you sign.
• We draft employment contracts and standard terms that comply with Book 7 BW and the applicable cao.
• We assess whether a non-competition or outside-work clause is valid and enforceable.
• We assess a proposed change of terms against Article 7:613 BW and the Stoof/Mammoet test.
• We claim unpaid salary with the statutory increase of Article 7:625 BW, or defend you against such a claim.

Summary

• An employment contract exists when someone works for pay in a relationship of authority; a written document is not required, but the employer must provide the essential terms in writing.
• Mandatory law and the applicable cao often matter as much as the contract itself.
• Probationary periods, non-competition clauses and clauses restricting outside work are only valid under strict conditions.
• An employer can only change the terms without consent under a unilateral amendment clause or if the change is reasonable and acceptance can reasonably be required.
• Employment disputes go to the subdistrict court; there are no separate employment tribunals.

Frequently asked questions