Employer’s rights and obligations

Your first steps as an employer: navigating Dutch employment law

Taking the step from entrepreneur to employer is an important milestone. Your business is growing and you are ready to hire your first employee. This opens up a new world full of rules, documents and responsibilities. It may seem a bit much at first, but remember: Dutch labour law is not there to thwart you. Think of it as a set of clear rules of the game that protect both you and your employees. It provides a predictable framework for professional cooperation. An employer’s rights and obligations are the building blocks for a healthy working relationship and a strong organisation.

These obligations may seem like red tape, but they serve an important purpose: they ensure fairness, safety and clarity in the workplace. Take, for example, the duty to ensure a safe working environment. This goes far beyond preventing physical accidents. It also means creating a psychologically safe atmosphere, free from harassment or excessive work pressure. An employer who invests in this often sees this directly reflected in lower absenteeism and higher productivity. After all, an employee who feels safe and valued is more engaged and motivated.

Why compliance is a strategic advantage

Complying with employment law is more than just ticking off a legal obligation; it is a smart investment in your business. Employers who get their act together build a reputation as a reliable and attractive place to work. In today’s tight labour market, this is an undeniable competitive advantage. Good candidates have the luxury of choice and often prefer an organisation where the basics are in place.

Moreover, proactively following the rules significantly reduces the likelihood of costly and time-consuming labour disputes. A dispute over salary payment or dismissal, for example, can not only cost you thousands of euros, but also significantly spoil the atmosphere in your team. By correctly applying the employer’s rights and obligations from day one, you lay a solid legal foundation under your human resources policy.

 

Employment contracts that work: practical obligations for modern employers

A signed employment contract often feels like the finish line. The agreements are on paper, the signatures are in place; the collaboration can begin. But in practice, the contract is not a static document. It is the start of a dynamic relationship in which the employer’s rights and obligations extend far beyond the letters in the agreement. A common, and often underestimated, duty arises when daily practice differs from what is written on paper, especially when it comes to hours worked.

Imagine this: a part-timer with a 24-hour-a-week contract has been structurally working 32 hours for months to cover peak workloads. This seems like a flexible solution, but legally it creates a new reality. If an employee routinely works more hours than contractually agreed, a so-called legal presumption of work scope arises. The employee can then claim that the actual scope of employment is higher, with all its consequences for wages, holidays and pension accrual.

The duty to adjust contracts: more than a formality

This legal presumption is not a casual idea. The legislator has drafted clear rules to protect employees in this kind of situation. One important tightening is that the obligation to amend contracts has been strengthened. From 2025, an employer in the Netherlands is legally obliged to make an offer to an employee after one year to adjust the contract to the average number of hours worked, if it is structurally higher. This is a proactive duty; so you cannot wait until the employee asks for it himself.

This requirement highlights how important proper time recording is. It is essential to have an accurate record of hours worked, not only for payroll purposes, but also to avoid legal problems. Indeed, ignoring a structural discrepancy can lead to retrospective claims.

Transparency as a foundation for a strong relationship

Acting proactively according to your rights and duties as an employer is more than just hedging risks. It is an investment in a relationship of trust. By being open about hours worked and proposing timely contract adjustments, you show good employment practice. This not only prevents discussions, but also makes employees feel fairly treated and appreciated, contributing to a positive company culture.

The table below lists situations where you, as an employer, are obliged to amend an employment contract.

Contract adjustment obligations for employers

Overview of situations where employers are obliged to amend employment contracts

Situation	Term	Employer’s obligation	Consequences in case of non-compliance
Structural overtime	After 1 year (by 2025)	Make offer for contract adjustment to average hours.	Claim on retrospective pay and fringe benefits.
Change of job content	Immediately	Document in writing the new position and any new terms of employment.	Lack of clarity on tasks and salary, which can lead to conflict.
Request from employee	Within one month	Respond in writing with reasons to a request for adjustment of working hours.	Fine or legal action initiated by employee.
Long-term disability	On reintegration	Offer suitable work and possibly adjust the contract accordingly (track 1 or 2).	Wage sanction from the UWV for insufficient reintegration efforts.

The table shows that carefully managing employment contracts, including making timely adjustments, is a core part of modern employerism and lays the foundation for a sustainable and successful employment relationship.

Flexible staff deployment without legal pitfalls

Flexibility is a godsend for many companies to fluctuate with workloads. On-call contracts, such as a zero-hours or min-max contract, give you that agility. However, this form of contract comes with a specific set of obligations that are often underestimated. The employer’s rights and obligations here are a lot more complicated than with a permanent contract. Insufficient knowledge can lead to unexpected wage claims and labour disputes. Using flexible staff correctly requires a good balance between your company’s needs and legal precision.

A common mistake is mishandling the on-call period. Many employers think they can call an on-call employee at the last minute. However, this is a misconception. Such an approach can not only strain the working relationship, but is also not allowed by law. Proper planning is therefore not only a matter of efficiency, but also a legal necessity.

The ground rules around calls and cancellations

The core of on-call workers’ legislation is to provide a piece of security and predictability to the employee. As an employer, you are obliged to call an employee for work in a timely manner. From 2025, this rule will be further tightened. You will then be obliged to notify on-call employees in writing or electronically at least four days in advance. An important detail here is that the day of the call itself does not count. So a call on Monday for work on Friday is on time, but a call on Tuesday for the same Friday is not. These details are crucial to avoid wage claims.

What are the consequences if you fail to meet this deadline?

• Late call: The employee is not obliged to appear.
• Timely call, but cancel within four days: you are still liable to pay wages for the hours for which the employee was scheduled.

These rules prevent employees from constantly being on standby without any guarantee of work and income. They force you as an employer to take your workforce planning more seriously, which can also ultimately contribute to better operations.

Fixed-hour offer after 12 months

Another important rule shaping the employer’s rights and obligations in flex contracts is the obligation after one year of employment. After 12 months, you are legally obliged to make the on-call worker a written offer for a fixed number of hours. This offer must be based on the average number of hours worked in the previous 12 months. Suppose an employee has worked an average of 18 hours per week; you must offer him or her a contract for 18 hours per week.

The employee may reject this offer and continue to work on an on-call basis, but the duty to make the offer lies with you as the employer. If you fail to do so, the employee may file a wage claim based on that average number of hours. This is a common pitfall that can lead to hefty retroactive financial claims.

Actively tracking the duration of on-call contracts and the hours worked is therefore not an unnecessary luxury, but necessary to comply with the law. By taking these obligations seriously, you combine the desired flexibility with good and fair employment practices. This lays the foundation for a strong and lasting relationship with your staff.

Recognising and preventing false self-employment: protect your business

The line between a salaried employee and a self-employed person (zzp’er) may seem clear on paper, but practice is often a lot more complex. Many entrepreneurs hire self-employed people without realising that they are balancing on a thin line, which carries considerable risks. This grey area is called false self-employment: a situation where someone works as a self-employed person, but the relationship actually has all the hallmarks of employment. It is one of the trickiest parts of the employer’s rights and obligations, with potentially large financial consequences.

Hiring a self-employed person may seem advantageous. After all, you don’t pay payroll taxes, pension contributions or sick pay. However, the tax authorities do not look at the label you put on the collaboration, but at what the relationship looks like in practice. Is there a relationship of authority, where you as the employer determine how, where and when the work is performed? Then chances are the taxman will see this as a working relationship. The same applies when the self-employed person has to carry out the assignment personally and receives compensation (wages) for it. These three elements – authority, labour and wages – form the core of an employment contract.

The criteria: when is a self-employed person actually an employee?

To avoid false self-employment, you need to know the difference between an assignment and an employment contract. The key question is always: how autonomous is the professional you hire really? Suppose you hire a software developer for a specific project with a clear delivery date. If this person works with his own equipment, largely determines his own working hours and is allowed to be replaced by another expert, everything points to a true independent entrepreneur.

Compare this to a ‘self-employed marketer’ who asks you to work in the office three set days a week, uses a company laptop, sits in at the weekly team meeting and has to take holidays by mutual agreement. In such a case, the signs of employment are obvious. The freelancer is then so intertwined in your organisation that independence fades.

To make the differences clear, we have put the main criteria side by side. The table below will help you determine whether a working relationship tends towards employment or self-employment.

Criterion	Employment relationship (employee)	Independent assignment	Risk indicator
Authority ratio	Employer gives binding instructions on how, where and when the work is done.	The contractor is free to execute as long as the result is achieved.	High: Working according to a fixed schedule or at a fixed workplace.
Personal labour	Employee has to perform the work himself and cannot just be replaced.	The contractor may (in theory) have the work performed by another person.	High: Substitution is contractually excluded or impossible in practice.
Free replacement	No right to free replacement; replacement is arranged by the employer (e.g. in case of illness).	The contractor is free to be replaced by a suitable other.	Medium: Replacement only possible after approval of the principal.
Own tools	Employee uses employer’s tools, laptop or software.	The contractor uses its own equipment and bears the investment costs itself.	High: Use of company property (laptop, phone, car).
Entrepreneurship	No entrepreneurial risk; wages continue to be paid.	Contractor runs entrepreneurial risk (investments, no orders, debtors).	Low: Self-employed person has multiple clients and actively invests in own business.
Embedding in the organisation	Employee is part of the team, participates in meetings and company outings.	The contractor is outside the organisation and focuses on the agreed task.	High: Participate in internal team meetings that are not project-related.

This comparison clearly shows that the degree of autonomy and entrepreneurship is the deciding factor. The more a professional is embedded in your business processes and the less freedom they have, the higher the chances of false self-employment.

Renewed enforcement and the financial risks

The need to closely scrutinise your contracts with self-employed workers has increased considerably recently. After a long period of lenient control, the government is tightening the reins again. From 1 January 2025, enforcement on bogus self-employment will be tightened and the tax authorities will check more actively. The enforcement moratorium, which had been in place since 2016, has been lifted. If a relationship is wrongly labelled as an assignment, this could have serious consequences. You can find out more about the changing legislation in 2025 at AWVN.nl.

What does this mean specifically for you as an employer? If the Inland Revenue rules that there is an employment relationship, you could be retrospectively charged for:

• Payroll taxes: This includes payroll tax and national and employee insurance contributions.
• Pension contributions: If your company is a member of a compulsory industry pension fund.
• Fines: For not correctly remitting mandatory levies.

Moreover, the ‘zzp’er’ suddenly acquires the status of an employee, including all associated rights such as protection against dismissal, continued sick pay and the right to holidays. The financial and operational blow can be huge. It is therefore essential to proactively review your collaborations with self-employed people. Make sure the contracts as well as daily practice confirm the self-employed nature of the relationship. That way, you protect your company from costly surprises afterwards.

From rule knowledge to daily practice: systems that work

Knowing the law is one thing, but translating those rules into day-to-day business is where the real challenge lies. Knowledge of employer rights and obligations becomes valuable only when it is firmly embedded in your business operations. Many entrepreneurs struggle with this: how do you turn complex obligations into workable processes without getting stuck in a bureaucratic quagmire that takes the momentum out of your business? The answer lies in setting up smart, practical systems that see compliance as a logical part of being a good employer, not a burden.

Think of it as building a house. You can have the best materials (the legal texts), but without a solid building plan (a practical HR system), it becomes a messy and unsafe affair. A good system ensures that obligations are consistently followed, even when you are not on top of things. This starts with establishing clear procedures for key moments, such as hiring, sick leave, performance reviews and contract changes.

Essential documentation: the backbone of your operations

A solid system relies heavily on proper documentation. The aim is not to create a paper trail for every little action, but to build a record that shows you are acting with care. This is invaluable in the event of any conflict or an inspection. Which documents are really indispensable?

• Employment contracts: The absolute basics. Make sure these are up-to-date and that all adjustments are in writing.
• File in case of dysfunction: Record reports of performance and appraisal interviews. Record concrete agreements and improvement plans in them.
• Absence registration: Keep a detailed log of sick notes and all the steps you take according to the Gatekeeper Improvement Act. This is crucial to avoid wage sanctions from the UWV.
• Hours registration: Especially with flexible contracts and structural overtime, conclusive records are needed to comply with the duty to offer a contract with more hours if necessary.

By organising this documentation smartly, for example in a secure digital personnel file, you not only save time, but also establish a strong legal foundation.

Transparent communication of rights and obligations

Another important pillar is how you communicate with your employees. This requires a delicate balance: you want to be open without creating unnecessary legal turmoil. A proactive approach works best here. Don’t wait until a problem arises, but make information about rights and obligations a regular part of your processes.

An excellent starting point is a staff handbook. In it, you lay down house rules, codes of conduct and important procedures. Think of the protocol for reporting sick, the rules for requesting holidays and the policy on undesirable behaviour. By handing over this document when you start work and updating it regularly, you create clarity and avoid discussions afterwards.

The illustration below from the central government shows the different aspects involved in an employment contract and collective agreement.

This page makes it clear that in addition to individual agreements, collective agreements (CAOs) and specific laws, such as the rules for on-call workers, are also important. By aligning your systems and communications accordingly, you build a transparent and fair working environment. In it, both the rights and obligations of the employer and the employee are respected. This strengthens mutual trust and is the most effective way to stay ahead of legal problems.

Preventing and resolving conflicts like a professional

Even in the smoothest-running organisations, disagreements can arise. Perhaps an employee feels they have been treated unfairly, a discussion about terms of employment gets out of hand, or a dismissal procedure leads to a conflict. How you handle these situations as an employer is all-important. A proactive and professional attitude can prevent further escalation and even strengthen the working relationship. In contrast, an awkward reaction can lead to expensive and time-consuming legal proceedings. Dealing with conflicts properly is therefore an essential part of the employer’s rights and obligations.

The key to success is early recognition of signs. A sudden rise in brief sick calls, a noticeable change in an employee’s attitude or constant discussions about trifles may indicate a deeper problem. By taking these signals seriously and starting the conversation, you can nip many disagreements in the bud already. An open and respectful company culture, where employees feel safe to share their concerns, is worth its weight in gold here.

From conversation to resolution: effective de-escalation

When a conflict does flare up, it is very important to remain calm and focused on a solution. The first and most important step is always a good conversation. Listen carefully to the employee’s story, without immediately getting defensive. Try to understand the underlying need behind the complaint. Often it is not just about the facts, but also a feeling of injustice or a lack of recognition.

If a direct conversation does not offer a solution, there are several paths you can take to resolve the conflict.

• Internal mediation: Ask a neutral third party within your organisation, such as an HR manager or a confidential counsellor, to manage the conversation.
• External mediation: A professional and independent mediator can help restore communication between you and the employee. Together, you work towards a solution that is acceptable to both parties. This is often quicker and cheaper than legal proceedings.
• Seek legal advice: In complicated disputes, such as dismissal or a non-competition clause, it is wise to seek timely legal advice. A lawyer can advise you on your legal position and the best strategy. This is a crucial step in keeping you compliant with the employer’s rights and obligations.

Going to court: when it is inevitable

Sometimes a conflict is so fundamental that going to court is the only remaining option. Labour law disputes, such as dismissal cases, wage claims or conflicts over the interpretation of a collective agreement, are handled by the subdistrict court.

The judiciary’s website provides clear information on how employment law procedures work and which topics frequently come up.

This page shows which categories within employment law are often dealt with by the courts, such as dismissal, pay and conditions of employment. It shows the various legal challenges you may face as an employer.

However, litigation is often a last resort. By acting preventively, communicating clearly and seeking professional help in time, you can resolve most conflicts before they escalate. Should you still find yourself in a situation where legal assistance is required, a specialised lawyer from Law & More can guide you through the process.

Looking ahead: building future-proof employment

The world of work is constantly changing. Compare it to a skipper constantly monitoring the weather forecast and sea currents; a smart employer looks ahead and anticipates changes in employment law. Responding to new laws only after they are already in place is often too late and can be unnecessarily costly. Being a future-proof employer is about looking ahead and designing your business to be flexible and strong. Dealing correctly with employer rights and obligations is therefore not a static checklist, but an ongoing process of adjustment and preparation.

Technological advances and social trends, such as the rise of home working, the use of AI in the workplace and the growing focus on mental wellbeing, are like the wind influencing the course of employment law. These developments inevitably lead to new legislation and different expectations from employees. An employer who thinks about a clear homeworking policy or the ethical frameworks for using AI now will have an edge over competitors and avoid problems in the future.

Monitoring legal trends: your compass for the future

Staying proactive requires a clear approach. You do not need to read the Official Gazette every day, but it is essential to have a way to stay informed. Without this compass, you are sailing blindly into the future.

• Follow reliable sources: Subscribe to newsletters from relevant parties such as the Ministry of Social Affairs and Employment, trade associations and specialised legal blogs.
• Periodic review: Schedule a set time at least twice a year to compare your employment contracts, staff handbook and internal rules with current and expected legislation.
• Expert sounding board: Build a good relationship with a legal adviser. A periodic conversation can save you from costly mistakes and gives assurance that you are not overlooking anything.

The goal is not to become an expert in every legal detail, but to recognise when changes impact your organisation so that you can make adjustments in time.

Checklist for periodic evaluation

A periodic checkup helps keep your HR policy healthy and compliant with the law. Think of it as the annual service for your car; it prevents you from breaking down unexpectedly at the roadside. Use the following checklist as a guide:

Subject	Action item	Frequency
Employment contracts	Are the templates still up-to-date? Do they comply with the latest legislation around flex work and on-call contracts?	Annual
Staff handbook	Does the handbook reflect current standards around privacy (AVG), working from home and codes of conduct?	Annual
Sick leave policy	Is the protocol still in line with the Gatekeeper Improvement Act? Is there a focus on prevention and mental health?	Biennial
Flexible shell	Are agreements with self-employed and on-call workers properly observed to avoid false self-employment and wage claims?	Half-yearly
Payroll administration	Does the wage structure comply with the legal minimum wage and any collective agreement increases?	With every change

By consistently monitoring these components, you will build an organisation that not only follows the rules today, but is also ready for tomorrow’s challenges. Being a good employer is a dynamic game between knowing your rights and carefully fulfilling your duties. For specialised advice on how to future-proof your organisation, you can always turn to the experts at Law & More.