Employment Agreement Requirements in the Netherlands Internal

Can employment agreements be backdated in the Netherlands?

No, agreements can not be backdated. However, starting dates may be adjusted if needed.

Can a supported employee work before their start date?

To minimize liability, we recommend your supported employee does not begin working before their start date or before employment agreements are signed. If it is absolutely necessary that the start date be modified, please reach out to Velocity Global through your normal process, and we will help you and discuss options.

Can we pay the salary in a different currency than the local currency?

Salaries in the Netherlands must always be paid in euros (EUR). Salaries cannot be paid in United States dollars (USD) or any other currency.

Should we classify our talent as a contractor or an employee?

In simple terms, classification status comes down to whether the individual is in business for themselves or under your company's control. Whether the individual is an independent contractor or an employee can sometimes be complicated and will come down to the circumstances of each working arrangement.

Specifically, courts look at many factors to determine whether an individual is an employee or a contractor, including the following: 

• Whether or not the individual exclusively provided services to the company
• The degree of control the company had over the individual’s work (including where, when, and how to perform the work under the employment agreement)
• Whether the individual was required to supply their own tools and equipment
• Whether the individual hires their own helpers to complete necessary duties
• The degree of business risk taken by the individual (e.g., their chances for profit and risk of loss)
• The degree of integration between the individual’s activities and the company’s business.

An employer has to be extra careful when it comes to classification status as misclassification may lead to legal liabilities/penalties.