If you’re looking to expand your reach as a company, tapping into global talent is a good place to start. But hiring skilled employees in the Netherlands might feel tricky when you want to be compliant, too.
Fortunately, you’ve come to the right place when you’re entering new hiring markets. Read on as we unpack the key steps to hiring in the Netherlands without an entity.
Choose Between a Dutch Entity or Employer of Record (EOR)
You’ll need to establish either a Dutch entity or an Employer of Record (EOR). How you decide may hinge on the size of your organization and set-up timeline. Your level of legal obligations and control may also factor into your decision.
If you’re a smaller operation, an EOR might make more sense in a competitive job market. You can get started quickly hiring new talent, and all HR responsibilities will be handled by a third party. An EOR tends to be cheaper, as well.
On the other hand, a Dutch entity could be better if you can wait a few months for the set-up to happen. You’ll have more control over the hiring process, and this option can be a good match for slow, measured growth goals. But an EOR may be the best place to start.
Review Dutch Labor Laws
Regardless of how you approach hiring, you can’t overlook Dutch employment regulations. You’ll need to be diligent about following contractual rules so you stay compliant. After all, laws are in place to protect workers.
Specify all terms clearly in contracts. You’re allowed up to three years for temporary contracts before they become permanent. And permanent contracts must include all details related to wages and hours.
You may be able to include probation periods, but be aware of strict limits. And you must provide notice for any terminations, including a legitimate reason.
Include Statutory Benefits
Working in the Netherlands comes with supportive benefits. All employees must receive them, and they should be detailed in any contracts you extend during the recruiting process.
All employees get parental leave. In a child’s first year of life, employees should receive 70% of their salary for nine weeks. An additional 17 unpaid weeks are available, as well, at any point until the child is eight.
Employees get at least 20 days of paid leave per year. And they’re entitled to sick leave and holidays. It’s important to remember that these benefits are mandatory, so you’ll need to account for them in your hiring strategy.
Account for Mandatory Taxes
You can’t afford to overlook taxes when you’re hiring employees in the Netherlands. Every employer should have a wage tax that is withheld, for example.
Many industries require pension contributions, as well as disability or unemployment contributions. If you go the EOR route, you can outsource these payroll responsibilities to qualified professionals who will handle all the details accurately.
Additionally, know that you may be required to establish a works council. If you hire more than 50 employees, you must create one.
A works council ensures that employees are involved in important changes and have their voices represented. Employees can look at policies instituted by leadership and advocate for workplace needs or better conditions. Changes to vacation policies or working hours will require approval from workers when a works council exists.
Be Aware of Hiring Costs
Ultimately, it’s smart to work through hiring costs before seeking international employees. Working with a reputable employer of record services in Netherlands can make understanding your expenses easier. You can calculate employment costs so you’re not surprised.
Remember that an employee’s salary is just one component of your total investment. And you’ll need to offer salaries that are competitive with those of similar organizations in the Netherlands.
Account for benefits and a pension, plus contributions to unemployment and paid leave. You’ll need to invest in onboarding processes and be prepared for raises and bonuses, as well.
Start Hiring in the Netherlands
When you’re looking to hire in the Netherlands without an entity, make sure you know what’s involved. You can begin with an EOR as a low-risk way to put together an international team of employees. Just be sure you’re accounting for benefits and taxes, and don’t neglect to consider Dutch labor laws.
Taking time to research hiring practices can ensure that you’re staying compliant and making the right hires.
