Market Entry in the Netherlands

>> HR Aspects Netherlands

The Netherlands has a highly educated, flexible and motivated workforce. Dutch professionals are also among the most multilingual in the world, enabling them to successfully operate in companies in any industry serving customers throughout the continent.

In the Netherlands, an employment contract is for a fixed term (a temporary contract) or for an indefinite period (a permanent contract).

There is a limit on renewing fixed-term contracts, if temporary contracts are continually extended, immediately or within 6 months, permanent employment will follow after 2 years or starting with the 4th consecutive contract (chain provision).

When a company employees personnel, no forms discrimination on the grounds of religion, beliefs, political opinions, age, race, gender, disabilities or any other grounds may influence the decision process.

Labour and workforce

The Netherlands has one of the lowest unemployment rates in the EU, about 6% of the working population. The rate is predicted to decrease further over the next few years to around 5%. There is a lack of professionals in some areas, like Information Technology, teaching and healthcare.

Salaries are relatively high. The Dutch workforce is covered by a social security program, the expense of which is shared between employers, employees and government.

Labour legislation is rather complex and generally favours employees. It is recommended that professional labour law advice is utilised to prevent legal issues.

Most companies and organizations participate in a collective labour agreement (CAO). This is a written agreement between one or more employers and one or more trades union prescribing the labour conditions for all employees, such as wages, payment of extra work, working hours, probation period, pension and education.

There is a large talent pool of independent professionals in the Netherlands that can be hired for almost any task such as design, coding, growth hacking, marketing, social media but also in areas such as construction, management consulting or general management.


Latest version updated 6th December 2017

Country Breakdown

17.02

Million

Population

Euro

Currency

$ 770.8

Billion

GDP

41,543

km2