Employment contracts in the Netherlands: which rules apply?

Under Dutch law, an employment contract exists where one person performs work for another, for a period of time, in return for pay, and does so under the other’s authority. Article 7:610 of the Dutch Civil Code (BW) sets out those elements, and the Supreme Court (Hoge Raad) has confirmed that whether they are present is judged on all the circumstances of the relationship taken together, not on the label the parties have given it (Deliveroo, 24 March 2023, ECLI:NL:HR:2023:443). A contract described as one for services is an employment contract if it works like one.

Once that threshold is crossed, a large body of mandatory law applies automatically. A fixed-term contract converts into a permanent one under the chain rule in Article 7:668a BW once the statutory number of contracts or the maximum period is exceeded. A probationary period is void unless it complies with Article 7:652 BW, which prohibits one altogether in contracts of six months or less and limits its length in every other case. A non-compete clause must be agreed in writing with an adult employee, and in a fixed-term contract is only valid if the employer has stated in the clause itself the compelling business interests that require it. On-call arrangements are regulated by Article 7:628a BW, which requires at least four days’ notice of each call and an offer of fixed hours after twelve months.

The rules on transparent and predictable working conditions, in force since 1 August 2022, add further duties. The employer must give the employee written information about the essential terms within the statutory period, may only restrict work for other employers where there is an objective justification, and must bear the cost of training it is obliged to provide.

Below we work through the types of contract, the clauses that are often invalid, and what to check before signing, whether you are the employer or the employee.

In short: the main rules for Dutch employment contracts

When is there an employment contract?

When someone performs work personally, for pay, under the authority of the other party. If those elements are present, it is an employment contract, even if the parties call it something else.

In the Deliveroo judgment, the Supreme Court listed circumstances that can matter, such as the nature and duration of the work, how the work and working hours are determined, whether the work is part of the organisation, whether the worker must perform the work personally, and whether the worker acts as an entrepreneur in other respects. No single circumstance decides the matter.

For businesses that work with freelancers (zzp’ers), this is an important point. If the relationship works like employment, the freelancer can claim the rights of an employee, and the Tax and Customs Administration (Belastingdienst) can impose payroll taxes after the fact. Since 1 January 2025, the tax authorities enforce this fully again.

A Dutch employment contract does not have to be in writing to be valid; an oral agreement is enough. But the employer must provide written information about the essential terms (Article 7:655 BW), and several clauses, such as a probationary period and a non-compete clause, are only valid in writing. In practice, a written contract is therefore always advisable.

Which types of employment contract exist?

The main types are the permanent contract, the fixed-term contract, the agency contract and the on-call contract. They differ mainly in duration, the certainty of hours and the protection against dismissal.

Permanent contract (contract voor onbepaalde tijd)

A permanent contract has no end date. The employer can only end it with the employee’s consent, with a permit from the UWV or through dissolution by the court, and only on a reasonable ground (Article 7:669 BW). This gives the employee the most protection.

Fixed-term contract (contract voor bepaalde tijd)

A fixed-term contract ends automatically on the agreed date. Under the chain rule (Article 7:668a BW), a permanent contract arises when there are more than three consecutive contracts, or when the contracts together last more than 36 months. Contracts count as consecutive if the interval between them is six months or less. A collective labour agreement (cao) may deviate from these rules in some respects.

For a fixed-term contract of six months or longer, the employer must inform the employee in writing, at least one month before the end date, whether the contract will be continued and on what terms (Article 7:668 BW). If the employer fails to do so, it owes compensation of up to one month’s wages.

Agency contract (uitzendovereenkomst)

An agency worker is employed by the agency and works for a client (Article 7:690 BW). Special rules apply, for example on the chain rule, and in practice the collective labour agreements for agency work add a system of phases. Agency workers are entitled to the same pay as comparable employees of the client.

On-call and zero-hours contracts

In an on-call contract, the employee works when called. This includes a zero-hours contract (nulurencontract) and a min-max contract. Since 2020, Article 7:628a BW protects on-call workers: the employer must call at least four days in advance, must pay for at least three hours per call where the hours are not fixed, and must offer a contract with fixed hours after twelve months, based on the average hours worked.

What is changing for flexible contracts?

On 7 July 2026, the Senate (Eerste Kamer) adopted the Act on more security for flexible workers (Wet meer zekerheid flexwerkers). It replaces zero-hours contracts with contracts that set a minimum and maximum number of hours, extends the interval in the chain rule from six months to five years, and strengthens the position of agency workers. The act enters into force on a date still to be set by royal decree. Employers who use flexible contracts should prepare now.

What should an employment contract contain?

At least the information that the employer must provide under Article 7:655 BW, such as the parties, the place of work, the position, the start date, the duration, the salary and the working hours. Other clauses, such as a probationary period or a non-compete clause, are optional but must meet strict requirements.

Basic information

• names and addresses of the employer and employee;
• place of work, and whether the employee can work at different places;
• position or type of work;
• start date and, for a fixed-term contract, the end date;
• the applicable collective labour agreement, if any;
• pension scheme, if any.

Salary and benefits

The contract states the gross salary, how often it is paid and any bonuses or allowances. The salary may not be lower than the statutory minimum wage: for employees aged 21 and over, €14.99 gross per hour from 1 July 2026. Employees are also entitled to a holiday allowance of at least 8% of their gross annual wage.

Working hours and leave

The contract states the number of working hours and, where relevant, the working pattern. The Working Hours Act (Arbeidstijdenwet) sets maximum working times. Every employee is entitled to statutory holiday of at least four times the agreed weekly working hours per year (Article 7:634 BW); for a full-time week of five days, that is twenty days. Many contracts and collective labour agreements add extra days.

Notice periods

If the contract says nothing, the statutory notice periods apply (Article 7:672 BW). For the employee, the notice period is one month. For the employer, it depends on the length of employment: one month for less than five years, two months for five to ten years, three months for ten to fifteen years and four months for fifteen years or more. Parties can agree on different periods in writing, within limits.

Probationary period

A probationary period (proeftijd) must be agreed in writing and is the same for both parties (Article 7:652 BW). It is not allowed in a contract of six months or less. In a fixed-term contract of more than six months but less than two years, the maximum is one month. In a permanent contract, or a fixed-term contract of two years or more, the maximum is two months. A probationary period that is too long is void as a whole.

Non-compete clause

A non-compete clause (concurrentiebeding) must be agreed in writing with an adult employee (Article 7:653 BW). In a fixed-term contract, it is void unless the clause itself states the compelling business interests that make it necessary. The court can set aside a valid clause in whole or in part if the employee is unfairly disadvantaged, and can order the employer to pay compensation. A non-solicitation clause (relatiebeding) is subject to the same rules.

Work for other employers

Since 1 August 2022, an employer may only prohibit or restrict work for other employers if there is an objective justification, for example health and safety, protection of business confidentiality or preventing conflicts of interest (Article 7:653a BW). A general ban on side jobs is void.

Training

Training that the employer must provide by law or under a collective labour agreement to perform the job must be free of charge for the employee and, where possible, take place during working hours (Article 7:611a BW). A study cost clause that requires the employee to repay the costs of such mandatory training is void. For other training, a repayment clause remains possible.

Other common clauses

• Confidentiality: an obligation to keep business information secret, often with a penalty.
• Intellectual property: confirmation that rights in work created during employment belong to the employer.
• Working from home and expenses: agreements on remote work and allowances.
• Penalty clauses: under Article 7:650 BW, a penalty clause must be in writing and state the specific obligations it applies to.

Which clauses are often invalid?

In our practice, the same clauses cause problems again and again. They look valid on paper but do not meet the statutory requirements.

• A probationary period in a contract of six months or less, or one that is longer than permitted.
• A non-compete clause in a fixed-term contract without written reasons.
• A general ban on side jobs without an objective justification.
• A study cost clause for training the employer is obliged to provide.
• A penalty clause that does not state which obligations it covers.
• A clause allowing the employer to end a fixed-term contract early, where it is not agreed that both parties can do so.

An invalid clause does not make the whole contract invalid; only the clause falls away. For the employer, that can mean losing protection it thought it had.

How does the contract work in daily practice?

The contract is the reference point when expectations differ, for example about the job, working hours, performance or a change in working conditions. A clear contract prevents discussions; an unclear one fuels them.

Performance and expectations

A contract that describes the position and responsibilities clearly makes it easier to discuss performance. If the employer later wants to dismiss for poor performance, it must show that the employee was informed in good time and given a real chance to improve. A clear job description and regular, documented reviews help both sides.

Can the employer change the terms?

Only with the employee’s consent, or on the basis of a unilateral change clause. Under Article 7:613 BW, such a clause only allows a change if the employer has such a serious interest that the employee’s interests must reasonably give way.

Without such a clause, an employee may still be required to accept a reasonable proposal for change in exceptional circumstances, under the standard of good employment practice. The Supreme Court set out this test in the Stoof/Mammoet judgment of 11 July 2008 (ECLI:NL:HR:2008:BD1847). In practice, the threshold for both routes is high.

Disputes

Many disputes are resolved through a conversation, sometimes with help from HR, a confidential adviser or a mediator. If that fails, the subdistrict court (kantonrechter) decides. In employment cases before that court, you do not need a lawyer, but advice is often useful because deadlines are short.

Flexibility and remote work

Many employers and employees want flexibility in working hours and place of work. Employees can ask for adjustments under the Flexible Working Act (Wet flexibel werken), which gives them the right to request a change in working hours, working times or place of work. Record agreements on remote working in writing, including the expenses allowance.

How does an employment contract end?

A fixed-term contract ends automatically on the agreed date. A permanent contract ends by mutual consent, by notice with a permit from the UWV, by dissolution by the court, or by summary dismissal for an urgent reason.

On termination at the initiative of the employer, the employee is generally entitled to a transition payment (transitievergoeding) of one third of a monthly salary for each year of service, from the first day of employment. In 2026, it is capped at €102,000, or one annual salary if that is higher. This also applies when a fixed-term contract is not renewed at the employer’s initiative.

What should you check before signing?

Both employer and employee benefit from checking the contract before signing. The points below cover the most common problems.

As an employee

1. Is it a permanent or fixed-term contract, and how many earlier contracts have you had with this employer?
2. Is the probationary period permitted and correctly agreed?
3. Is there a non-compete or non-solicitation clause, and is it reasonable?
4. Does the salary match the collective labour agreement and the statutory minimum wage?
5. Are the working hours, place of work and remote work clearly described?
6. Does the contract restrict side jobs, and is there a justification?

As an employer

1. Is the relationship really employment, or could a freelance arrangement be reclassified as employment?
2. Does the contract comply with the applicable collective labour agreement?
3. Are the clauses on probation, non-competition and penalties valid?
4. Have you provided the required information within seven days and one month?
5. Do you track the chain rule and the notification duty for fixed-term contracts?
6. Are you prepared for the Act on more security for flexible workers?

In summary

• An employment contract exists when there is work, pay and authority, judged on all circumstances (Article 7:610 BW).
• More than three fixed-term contracts, or more than 36 months, results in a permanent contract (Article 7:668a BW).
• A probationary period, non-compete clause and penalty clause must be in writing and meet strict statutory conditions.
• On-call workers are protected by Article 7:628a BW; the Act on more security for flexible workers will replace zero-hours contracts.
• Check the contract before signing: invalid clauses are common and only become visible in a dispute.

Frequently asked questions

How can we help?

The employment law team at Law & More reviews and drafts employment contracts for employers and employees, in English and Dutch, and advises on flexible contracts, non-compete clauses and disputes. You can contact a Dutch employment lawyer through our website.

Unsure where you stand? Tell us about your situation. We will let you know your options within one working day.

How Law & More can help you with this is explained on our employment lawyer page.