Netherlands

Employment

Employment of record services is the common way to employ employees in Netherland. The work council is a key player in communicating and settling terms and conditions between employees and management, both employer and employees are obliged to abide by certain decisions of work council.
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The council has the right to approve working conditions including remuneration and appraisal system, working hours and resignation rules. Work councils, in turn, are governed by Law on Collective Labor Agreements. Labor and Security Law sets maximum limit for probationary period which is two months, and give requirements that need to be fulfilled to hold the employment contract.

Payroll

Pay frequency is monthly for work between the first and last day of the month.
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Payday is at the end of each month.

HR & Labor

Full time employment is considered 8 hours per day, 40 hours per week. Employees are entitled to 30 minutes break after working continuously for 4.5 hours. Employees can be 13 years old of age to start working in the Netherlands, however under special supervision and regulations.

Immigration

Nationals of EEA member states (comprised of the EU, Iceland, Liechtenstein and Norway) and Switzerland do not need permits to work in Spain. Nationals of Croatia, however, will need a work permit to be employed. Employers are prohibited to employ non-EEA employees without work permit. It is employer’s duty to obtain work permit for foreign employees. Certain categories of work force do not require work permit.
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Examples include independent entrepreneurs and highly educated employees. A foreign employee is eligible for an annotation on their residence permit that makes them eligible to work without a work permit, after three consecutive years of legal residence and employment.

Benefits

The law provides for a minimum annual allowance. This allowance amounts up to 8% of the gross salary or minimum wage and is paid mid-year.

Minimum Wage

As from 1st January 2015, minimum monthly wage is EUR 1,501.80. Minimum wage differs for individuals less than 23 years of age.

Public Holidays

December 25: Christmas Day
December 26: St Stephens Day
December 31: New Years Eve

January 01: New Year's Day
March 30: Good Friday (Public Sector)
April 01: Easter
April 02: Easter Monday
April 27: King's Birthday
May 04: National Remembrance Day (Not Public Holiday)
May 05: Liberation Day (Public Sector)
May 10: Ascension Day
May 20: Pentecost Sunday
May 21: Whit Monday
November 04: All Saints Day (Not Public Holiday)
December 25: Christmas Day
December 26: St Stephens Day

Pension Fund

Employee contributes 17.90% with salary ceiling of 33,589EUR.

Severance Payment

Employer is required to make transition payment to the terminated employee, if they have stayed with the company for at least 2 years. The amount of the payment will be calculated by the numbers of years in service. This payment, however, cannot exceed higher of EUR 75,000 or annual salary of the employee. Employer will not make transitional payment if the termination is resulted from misconduct of the employee.

Advance Notice

To terminate employees who are serving for less than five years, employer has to serve one month notice. For employees working for 5-10 years, the notice period is two months and three months for employees working for 10-15 years. Four-months notice period is applied for employees working more than 20 years.

Termination Procedure

Before dismissing an employee, the company must notify the local labor force and trade union. Only if the labor force agrees, through a permit, to the dismissal, then the termination can proceed.
The terminated employee can appeal a negative ruling that labor office will issue to civil court. A dismissal is regarded as unjustified if its effects on employee outweigh those on employer, if there is no reason for the dismissal and if the dismissal is made against current agreement in the industry.

Sick Days

Employees in the Netherlands can take up to two years of sick leave while continuing to receive 70% of their original salary.

Vacation Days

Employees are entitled to receive vacation time provided at a minimum of four times of average number of days worked per week. Normally this vacation is extended to 25 days upon agreement. For personal events, legally mandated paid leave of one to four days is usually allowed. For special circumstances, this leave can be extended.

Additional Employee Withholdings

1) Surviving Defendants Act
2) Long Term Care Act

1) Employees contribute 0.6%
2) Employees contribute 9.65%

VAT

VAT is 21% standard rate.