Employment Agreement Options in the Netherlands

Types, seniority, noncompetes, and more.

Updated on December 20th, 2022

What are the types of employment agreements we can offer? (e.g., fixed-term, indefinite, project-based)

We offer indefinite and fixed-term agreements with a fixed monthly salary. We can also offer part-time agreements (indefinite or fixed-term). Please note that we do not provide hourly wage contracts.

Fixed-term employment agreements are for a specific time. These contracts may either be set for a period of time, a specific project, or to fill in for an employee who is on sick leave. An employer can enter into a maximum of three consecutive fixed-term contracts within three years (including intervening gaps between consecutive contracts below six months). If either limit is passed, then your supported employee is converted to a permanent status. 

Can we recognize seniority in the Netherlands?

We cannot use the original start dates to recognize seniority. However, we may be able to recognize seniority through other clauses in the employment agreement (these can be used as the basis for calculations of any severance package and notice period). We can recognize your supported employee's seniority through the employment agreement they sign with us, a tripartite agreement, or an addendum. Recognizing seniority always needs to be evaluated on an ad hoc basis, so please submit a ticket using the Help widget at the bottom of the page if you are considering recognizing seniority. 

Can we include benefits in the employment agreement?

Yes, benefits can be included in the employment agreement with the gross amount in euros (EUR). If you would like to include your internal benefits, please submit a ticket using the Help widget at the bottom of the page, as this would need to be reviewed on a case-by-case basis.

Can we add variable compensation to the employment agreement?

Variable compensation can be included by utilizing our Variable Compensation Agreement template.  

In the Netherlands, it is important to define specific targets to which the achievement of the payment is linked. If no targets are provided, your supported employee can claim the full amount of the variable compensation. If variable compensation is provided consistently, your supported employee may claim the variable compensation became part of their terms and conditions for employment.