Dutch employment law protects employees strongly, and most of that protection is mandatory: it applies whatever your contract says, and it applies to expats in the same way as to Dutch employees. The main exception concerns your right to work: if you are not a national of the EU, the EEA or Switzerland, you need a residence permit that allows employment, and that permit usually depends on your job.
Three things therefore shape your position as an expat. The first is the right to work, most often through the highly skilled migrant permit (kennismigrant). The second is your contract, including the rules on fixed-term contracts, probation and salary. The third is dismissal: an employer cannot simply end your contract, and you are in principle entitled to a transition payment when it does. Below we go through each subject, together with sickness, holidays and what happens to your permit if you lose your job.
Which parts of Dutch employment law matter most to you?
Five subjects: your permit to work, your employment contract, your pay and tax position, your rights during sickness and holidays, and the rules on dismissal. Dutch law applies to all of them once you work in the Netherlands, even if your contract was signed abroad.
Many expats work under a contract governed by Dutch law. If your contract chooses another law, for example because you were seconded by a foreign parent company, the mandatory Dutch rules that would apply without that choice still protect you under the Rome I Regulation. In practice this means that the Dutch rules on dismissal, minimum wage and holidays often apply regardless of the law in your contract.
Most rules are found in Book 7 of the Dutch Civil Code (Burgerlijk Wetboek, BW), Title 10, which covers the employment contract (arbeidsovereenkomst). On top of the law, many sectors have a collective labour agreement (collectieve arbeidsovereenkomst, CAO) that adds or improves rights. Your own contract then fills in the details. Where these sources conflict, the rule that protects you best usually prevails, although some statutory rules allow a CAO to deviate.
How do you get permission to work in the Netherlands?
If you are a national of the EU, the EEA or Switzerland, you do not need a permit to work. Other nationals usually need a residence permit that allows work, most often the highly skilled migrant permit, which your employer applies for.
The highly skilled migrant route has two key conditions. Your employer must be a recognised sponsor (erkend referent) with the Immigration and Naturalisation Service (IND), and your salary must meet the income threshold that the IND sets each year. Your employer submits the application and is responsible for the accuracy of the information. A recognised sponsor can use an accelerated procedure, which is considerably faster than the standard route.
Recognition as a sponsor is not a formality. The employer takes on legal obligations, such as keeping records about you and informing the IND of relevant changes, for example when your employment ends. If an employer fails to comply, the IND can impose a fine or withdraw the recognition, which can affect every foreign employee of that company.
What salary do you need as a highly skilled migrant?
For 2026 the IND requires a gross monthly salary of at least EUR 5,942 if you are 30 or older, and EUR 4,357 if you are under 30. A reduced threshold of EUR 3,122 applies to recent graduates, for example after an orientation year.
These amounts are gross per month, excluding the holiday allowance. The IND adjusts them every year on 1 January, and the threshold applies not only to the first application, but also to an extension and to a change of employer. Your contract must show a salary that meets the threshold for your age group; it is one of the first things the IND checks. You can check the current figures on the IND page on income requirements.
The EU Blue Card is an alternative route with its own salary threshold and conditions, such as a recognised higher education qualification. Which route suits you depends on your education, your salary and your plans. Our article on the work visa requirements in the Netherlands explains the process step by step.
Small errors can cause long delays. Typical examples are a salary that is miscalculated because the holiday allowance was included, or a missing document. Once the permit has been granted, you can start work and move on to the next step: understanding your contract.
What should your employment contract contain?
Your contract sets out your job, salary, working hours and the rules that apply to you. Your employer must also give you the main terms in writing, within one week of your start for the most important items.
The information duty follows from Article 7:655 of the Civil Code. The employer must inform you in writing about matters such as the names and addresses of both parties, the place of work, your job title or a description of the work, your start date, the duration if the contract is for a fixed term, the probationary period, your salary and how it is paid, your working hours, your holiday entitlement, the notice period and any applicable CAO or pension scheme. Most of this must be provided within the first week; some items may follow within one month.
The salary must be at least the statutory minimum wage. Since 1 January 2024 the Netherlands has a statutory minimum wage per hour, which applies to every hour you work. There is no general statutory right to extra pay for overtime; whether you receive it depends on your contract or CAO. On top of the salary, you are entitled to a holiday allowance of at least 8 percent, which we discuss below.
What is the difference between a fixed-term and a permanent contract?
A fixed-term contract (contract voor bepaalde tijd) ends automatically on the agreed date. A permanent contract (contract voor onbepaalde tijd) has no end date and can only be terminated under strict legal conditions.
Many expats start on a fixed-term contract. If that contract lasts six months or longer, your employer must tell you in writing, at least one month before it ends, whether it will be renewed and on what terms. This is the notification duty (aanzegplicht) of Article 7:668 of the Civil Code. If the employer does not notify you in time, it owes you compensation equal to your salary for the period of the delay, up to one month.
If you continue working after the fixed-term contract ends and the employer does not object, the contract is in principle deemed extended on the same terms for the same period, with a maximum of one year. That extension counts towards the chain rule below.
When does a fixed-term contract become permanent?
Under the chain rule (ketenregeling) in Article 7:668a of the Civil Code, a fixed-term contract becomes permanent by operation of law if you receive more than three consecutive fixed-term contracts, or if the consecutive contracts together last more than 36 months.
In other words, the fourth fixed-term contract automatically becomes a permanent contract, and so does a contract that takes the total beyond 36 months. Contracts count as consecutive if the gap between them is six months or less. A CAO may deviate from the chain rule for certain jobs, for example by allowing more contracts or a longer period, so always check whether a CAO applies.
An example: an employee receives a one-year contract, then another one-year contract, then a contract for eighteen months. The third contract takes the total to 42 months. From the moment the 36 months are exceeded, the employee has a permanent contract, even though only three contracts were signed.
How long may a probationary period last?
A probationary period (proeftijd) must be agreed in writing and is limited by Article 7:652 of the Civil Code. In a permanent contract it may last at most two months. In a fixed-term contract of six months or less, no probationary period is allowed.
For a fixed-term contract of more than six months but less than two years, the maximum is one month. For a fixed-term contract of two years or longer, the maximum is two months. During the probationary period both you and the employer can end the contract with immediate effect. A probationary period that is longer than the law allows is void in its entirety, so neither party can rely on it.
| Feature | Fixed-term contract (bepaalde tijd) | Permanent contract (onbepaalde tijd) |
|---|---|---|
| Duration | Ends on an agreed date or event | No end date |
| Ending | Ends by operation of law; written notice of renewal required for contracts of six months or more | Only by mutual agreement, with UWV permission or by court order (or summary dismissal) |
| Probationary period | None if six months or less; maximum one month if less than two years; maximum two months if two years or more | Maximum two months |
| Chain rule | Becomes permanent after more than three contracts or more than 36 months | Not applicable |
Which other clauses deserve attention?
Check any non-competition clause, the notice period and any clause that allows your employer to change your terms. These clauses can restrict you long after you have signed.
A non-competition clause (concurrentiebeding) is valid only if it is agreed in writing with an adult employee (Article 7:653 of the Civil Code). In a fixed-term contract it is in principle void, unless the contract explains in writing why the clause is necessary because of compelling business interests. Even a valid clause can be set aside or limited by the court if it unfairly restricts you compared with the employer’s interest.
The statutory notice period for the employer depends on the length of the employment: one month if it lasted less than five years, rising to four months after fifteen years (Article 7:672 of the Civil Code). As an employee you normally give one month’s notice. The contract may provide for different periods within statutory limits, and notice must in principle be given towards the end of a calendar month.
What is deducted from your salary, and what is the 30 percent ruling?
Your employer withholds payroll tax (loonheffing) from your gross salary, which combines wage tax and national insurance contributions. If you were recruited from abroad, your employer may be able to pay part of your salary tax-free under the 30 percent ruling.
Your payslip (loonstrook) shows the route from gross to net. The largest deduction is the payroll tax. It covers wage tax and the contributions for national insurance schemes such as the state pension (AOW) and long-term care (Wlz). Your employer also pays employee insurance contributions, for example for unemployment benefits (WW), but those are not deducted from your salary. Pension contributions, if there is a pension scheme, usually appear as a separate deduction.
The 30 percent ruling (30%-regeling) allows an employer to pay an employee recruited from abroad a tax-free allowance for the extra costs of living outside their home country. According to the Dutch Tax Administration (Belastingdienst), the ruling applies for a maximum of five years. You must have lived more than 150 kilometres from the Dutch border for more than 16 of the 24 months before you started, and you must have specific expertise that is scarce in the Dutch labour market.
The expertise condition is tested through a salary norm. For 2026 your taxable salary must be at least EUR 48,013 a year, or EUR 36,497 if you are under 30 and hold a Dutch master’s degree or an equivalent foreign degree. The tax-free allowance is also capped, in line with the salary cap for top public-sector incomes. Your employer and you must apply jointly, and the application must be made within four months of the start of your employment for the ruling to apply from the start.
The rules have changed several times in recent years, for example the end of the option to be treated as a partial non-resident taxpayer. Further changes to the percentage have been announced. The terms that apply to you depend on when your ruling was granted, so check them with your employer. Law & More does not advise on tax structuring; for personal tax questions we recommend a specialised tax adviser.
What are your rights when you are sick?
If you cannot work because of illness, your employer must continue to pay at least 70 percent of your salary for up to 104 weeks. In the first year you must receive at least the statutory minimum wage.
This obligation follows from Article 7:629 of the Civil Code. Many CAOs and contracts go further, for example 100 percent in the first year and 70 percent in the second year. The contract may provide for up to two waiting days without pay at the start of each period of sickness. During the first two years of sickness your employer may not give you notice because of the illness; this is the prohibition of notice during sickness (opzegverbod bij ziekte) in Article 7:670 of the Civil Code.
You must report sick according to your employer’s rules, usually on the first day before a set time. The employer engages an occupational health doctor (bedrijfsarts). This doctor does not treat you, but advises on what work you can still do and on your return. Together with your employer you draw up a reintegration plan, often with a gradual return to work. The procedure follows the Gatekeeper Improvement Act (Wet verbetering poortwachter).
Cooperation matters. If you refuse without good reason to follow the doctor’s advice or to perform suitable work, the employer can suspend your salary. After two years of sickness, the employer can apply to the UWV for permission to dismiss you, provided that it has made sufficient efforts to help you return. You can then apply to the UWV for a benefit under the Work and Income according to Labour Capacity Act (WIA).
How many holidays and how much holiday allowance do you get?
You are entitled to at least four times your weekly working hours as paid holiday per year: 20 days for a full-time five-day week. On top of your salary you receive a holiday allowance (vakantiegeld) of at least 8 percent of your gross annual salary.
The minimum is set in Article 7:634 of the Civil Code. A part-time employee working three days a week is therefore entitled to at least 12 days. Many contracts and CAOs grant more, often 25 days or more for a full-time job. The statutory minimum days expire six months after the end of the calendar year in which you accrued them, unless you could not reasonably take them. Extra days above the minimum expire after five years. Public holidays such as King’s Day and Christmas are not statutory days off in the Netherlands; whether you are free on those days depends on your contract or CAO.
The holiday allowance is usually paid once a year, in May or June. It is calculated on your gross salary and is part of your total annual pay. When your employment ends, any unused holiday days and the accrued holiday allowance must be paid out.
Which other leave and working-time rules protect you?
Dutch law limits working hours and gives you several forms of leave for family reasons. Some are paid by the employer, some by the UWV, and some are unpaid.
The Working Hours Act (Arbeidstijdenwet) sets maximums for adults: in principle no more than 12 hours per shift and 60 hours per week, with an average of no more than 48 hours per week over a period of 16 weeks. It also requires rest periods and breaks. These are outer limits; your contract or CAO determines your normal working hours.
The Work and Care Act (Wet arbeid en zorg) regulates leave. A pregnant employee is entitled to at least 16 weeks of pregnancy and maternity leave, paid through a UWV benefit. A partner is entitled to one week of paid birth leave, followed by up to five weeks of additional birth leave during which the UWV pays a benefit of 70 percent of the daily wage, up to a maximum. Each parent is also entitled to parental leave of 26 times the weekly working hours per child until the child turns eight. Nine weeks of that leave, if taken in the first year after the birth, is partly paid through a UWV benefit; the rest is unpaid unless your contract or CAO provides otherwise.
There is also short-term care leave to look after a sick partner, child or parent, during which the employer pays at least 70 percent of your salary, and long-term care leave, which is unpaid. For emergencies, such as a sudden problem at home, you are entitled to calamity leave with pay for a short period. If your employer refuses leave to which you are entitled, raise it in writing and seek advice, because a dismissal because you used your statutory leave rights is not allowed.
How can your employment be ended?
An employer cannot dismiss you at will. It needs your written consent, permission from the Employee Insurance Agency (UWV), or a court order dissolving the contract, and it must have a reasonable ground listed in Article 7:669 of the Civil Code.
Article 7:669 lists the grounds exhaustively. They include redundancy for business economic reasons, long-term incapacity for work after two years of sickness, frequent absence due to illness, underperformance, culpable conduct, a conflict of conscience, a seriously damaged working relationship and a combination of grounds (the cumulation ground). In addition, the employer must show that it cannot reasonably offer you another suitable position, with training if necessary.
Which route applies depends on the ground. For redundancy and long-term sickness, the employer must apply to the UWV for a dismissal permit. For reasons relating to you personally, such as underperformance or a damaged relationship, the employer must ask the subdistrict court (kantonrechter) to dissolve the contract. Only for a serious urgent reason, such as theft or violence, may the employer dismiss you summarily with immediate effect, and it must then tell you the reason straight away (Article 7:677 of the Civil Code).
What is a settlement agreement?
Most employment relationships end by mutual consent in a settlement agreement (vaststellingsovereenkomst). It sets the end date, any compensation and the other terms, and it is binding once the reflection period has passed.
A settlement agreement must be in writing. You have a statutory reflection period of 14 days after signing, during which you can dissolve the agreement without giving reasons (Article 7:670b of the Civil Code). If the agreement does not mention that right, the period is extended to three weeks. The agreement should also be drafted so that you keep your right to unemployment benefit (WW): the initiative must lie with the employer, there must be no urgent reason attributable to you, and the correct notice period must be observed or compensated.
Before you sign, have the agreement reviewed. Points to check include the end date, the amount and timing of the payment, holiday days, bonus and share plans, any non-competition clause, the reference and the effect on your residence permit. Our article on how to terminate employment in the Netherlands discusses the procedures in more detail.
Are you entitled to a transition payment?
Yes, in principle. If your employer ends the contract or does not renew a fixed-term contract, you are entitled to a transition payment (transitievergoeding) from your first day of employment.
Under Article 7:673 of the Civil Code, the payment is one third of your monthly salary for each year of service, calculated pro rata for part of a year. The monthly salary includes fixed components such as the holiday allowance and fixed bonuses. The law sets a maximum amount that is adjusted each year. There are exceptions: you are not entitled to it if the contract ends because of your seriously culpable conduct, or if you resign yourself, unless your resignation was caused by seriously culpable conduct of the employer. If the employer acted seriously culpably, the court can also award a fair compensation (billijke vergoeding) on top of the transition payment.
Which deadlines apply after a dismissal?
Deadlines are short. If you want to challenge a summary dismissal or a termination without your consent, you must in principle file a request with the subdistrict court within two months after the contract ended (Article 7:686a of the Civil Code). The same two-month period applies to a claim for a fair compensation and in principle to a claim for a transition payment. After a UWV permit or a court decision, appeal and review periods apply that are just as tight. Seek advice as soon as you receive a letter about dismissal.
What happens to your residence permit if you lose your job?
If you hold a highly skilled migrant permit and your employment ends, you normally have a search period (zoekperiode) of three months to find a new job with a recognised sponsor. If you become unemployed on or after 22 May 2026 and have held the permit for two years or more, the IND gives you a maximum of six months.
During the search period your residence permit remains valid, but the period cannot extend beyond the end date of your permit. You may look for work, but you may not work in the meantime without a new permit. Your employer must inform the IND that the employment has ended. If you find a new job with a recognised sponsor who pays at least the applicable salary threshold, the new employer submits an application for a change of employer. If the search period ends without a new job, you must find another residence purpose or leave the Netherlands.
This link between your job and your permit is why the timing of a dismissal or a settlement matters so much for expats. An end date that falls shortly before the two-year mark can, for example, make the difference between a three-month and a six-month search period. Taking that into account before you sign can give you valuable time.
Frequently asked questions
What is a collective labour agreement (CAO) and does it apply to you?
A CAO is an agreement between employers or employers’ organisations and trade unions on terms of employment in a company or sector, such as salary scales, working hours, pension and leave. It applies to you if your employer is bound by it, or if the Minister has declared it generally binding for your sector. Your contract usually states whether a CAO applies; otherwise ask HR. A clause in your contract that is less favourable than a binding CAO provision is generally void, and the CAO provision applies instead.
Can your employer change your contract without your consent?
In principle, no. Your salary, job and working hours are part of the agreement and cannot be changed unilaterally. The exception is a unilateral amendment clause (eenzijdig wijzigingsbeding) under Article 7:613 of the Civil Code. Even then, the employer may only rely on the clause if it has such a substantial interest in the change that your interests, which would be harmed by it, must reasonably give way. That is a strict test. Without such a clause, an employer can only propose a change, and you must consider a reasonable proposal made because of changed circumstances in good faith.
Does Dutch law apply if your contract is governed by foreign law?
Often, partly. A choice of law cannot deprive you of the protection of the mandatory rules of the country where you normally work. If that is the Netherlands, the Dutch rules on dismissal, minimum wage and holidays generally protect you, even under a foreign contract.
Can you work for another employer during your search period?
Not without a residence permit that allows that work. The search period is meant to find a new job with a recognised sponsor, who then applies to the IND for the change of employer.
Do you have to join your employer’s pension scheme?
There is no general statutory duty for employers to offer a pension scheme. However, if your employer is covered by a mandatory industry-wide pension fund, or offers a company scheme, participation is usually part of your terms of employment and contributions are deducted from your salary. Ask for the scheme details before you sign, and check what happens to your accrued pension if you leave the Netherlands.
In summary
- Most Dutch employment protection is mandatory and applies to expats in the same way as to Dutch employees.
- If you are not an EU, EEA or Swiss national, you usually need a highly skilled migrant permit through a recognised sponsor, with a salary above the IND threshold (EUR 5,942 gross per month from age 30 in 2026).
- A fixed-term contract becomes permanent after more than three contracts or more than 36 months; a probationary period is limited to one or two months, depending on the contract.
- You are entitled to 70 percent salary during sickness for up to two years, at least four weeks of holiday and an 8 percent holiday allowance.
- Dismissal requires your consent, UWV permission or a court order, and in principle entitles you to a transition payment; after losing your job, a search period of three or six months applies to your permit.
Law & More advises expats and international employers on Dutch employment law, from contracts and permits to dismissal and settlement agreements.
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