Employment law

Provisions that apply during the term of the employment contract, but also agreements that continue after the end of the employment contract, are laid down in a contract. Within the framework of the law and any applicable collective labour agreement (in Dutch: collectief arbeidsovereenkomst, CAO), there is room for customisation. Examples are diploma requirements, submission of a certificate of conduct, rules for absence due to sickness and recovery, study costs clauses, social media policy, etc.

Our lawyers will be happy to help you with advice and/or a model agreement that does justice to your situation. Do you have doubts about your existing employment contracts or regulations? If yes, we can review them and adapt them (where necessary) to current legislation and to your wishes.

Not every employer is obliged to offer pension to their employees. Nevertheless, about three quarters of the working population builds up pension with a pension provider. In several sectors, such as the public sector, health care, construction, transport and retail, it is often a matter of mandatory pension participation in an industry-wide pension fund. A company may also offer its own pension fund or take out a pension plan with a pension insurer or a premium pension institution

During the first two years of illness, there is a prohibition against termination of employment. This means that the Employee Insurance Agency (UWV) will not grant a dismissal permit. As an exception, a court of law may dissolve the employment contract with a sick employee. In that case, the dissolution may not have any connection with the (occurrence of) the illness. If the occupational disability continues after two years and no wage penalty is imposed, the employment contract may be terminated.

Even if the employment contract is fully or partially terminated after and on account of long-term occupational disability, the employer must pay a full or partial transition fee. The employer may get (partial) compensation from the Employee Insurance Agency (UWV).

Clients are (rightly) cautious because of the risks such as continued payment of wages during illness, payroll taxes, pension protection or severance pay for an alleged contractor. Whoever wants to outsource work on the basis of a contract for services must therefore ensure that the contract is in order. In short, anyone who actually treats a contractor as a third party will prevent a later ruling by a court or other authority that the actual performance indicates there was an employer-employee relationship.

There may also be reasons other than economic or organisational ones for parting with an individual employee. For example, the employee may have been ill for a long time, may have acted culpably, may not be functioning properly or the mutual relationship may have been seriously disrupted. In addition, there may be urgent grounds for instant dismissal, as a result of which the employment contract must be terminated immediately. Also in such an individual case, an employer must state the reasons for parting with the employee, and specific rules apply.

This relates to whether you want to offer someone an employment contract, hire in temp labour, or enter into an agreement for services. In the latter case, it remains important that the self-employed person – without personnel – (in Dutch: zelfstandigen zonder personeel, ZZP) who will perform the services can actually work without being subject to the directions and authority of an employer or is free to send a substitute. The employment contract can be entered into for a definite or indefinite period of time, with or without specification of the scope of work and with or without restrictive clauses.

If part of the company’s activities is terminated or a major cutback is planned, the works council has the right to be consulted. When requesting advice, the entrepreneur must also provide insight into the consequences for staff. This is often done by means of a social plan, which is agreed with the trade unions as a starting point.