Contracts in the Netherlands
The Active Population in Figures
|Labor Force||8 283 000||8 211 000||8 231 000||8 383 000|
|Labor Force (Annual Growth, %)||-0.43||-0.87||0.25||1.85|
|Rate of Activity (%)||64.2||63.3||63.2||64.5|
|Unemployment Rate (%)||5.4||6.5||6.5||5.5|
|Employed Persons, by Occupation (% of Total Labor Force)||2005|
|Agriculture and Fishery||1.4%|
|Hotel and Catering Industry||3.7%|
|Transport and Communication||6.1%|
|Public management and Social Security||7.2%|
|Culture and Recreation||4.0%|
Source: Dutch Statistics Office
Management of Human Resources
- Method of Recruitment
- Usually an advertisement is placed in a paper or magazine. Aspiring candidates send their CV accompanied by a letter after which a number of candidates are selected for an interview. Recruitment by means of a headhunter and the internet are becoming more popular.
- Recruitment Agencies
- Public Employment Offices
- Private Employment Agencies
- Labor Dispatch Business.
- Recruitment Websites
The public employment office of the Dutch government
Digital recruitment ground for both employers and employees
A private recruitment agency
Labor dispatch company
Labor dispatch company
- Type of Contract
- Regulated by legal clauses and to a lesser degree by collective agreements and individual negotiations.The terms of employment contracts cannot be changed, the conditions for hiring and the limits for dismissal are rather rigid.
- Breach of Contracts
- Normal resignation (once the employee becomes 65) or resignation by agreement or by the employee's request.
An employee can only be fired if the government agrees with the decision. Valid reasons for firing someone can be:
- That the employee is incapable of executing his tasks;
- a vexed relation between employer and employee;
- when the employee is ill too often;
- when the employee is incapacitated for work.
- Other Possible Methods
Collective dismissals (possible for economic reasons)
- Labor Laws
Dutch Ministry of Social Affairs and Employment
- Cases of Dispute
- The employee was incapable (23%), the business is doing bad (21%), a vexed relation between employer and employee (17%), the employee is incapacitated for work (16%).
- Legal Framework
Companies must notify local labor offices and trade unions before dismissing any worker. Only with agreement from the labor office (via a permit) may a firm dismiss workers. The head of the local labor office looks at the circumstances and decides whether to grant a permit.
An employer can appeal against a negative ruling by a labor office to a civil court. The criteria used by the labor office (and by the civil court on appeal) are based on recent court rulings and provisions of the Dutch civil code. A dismissal is usually considered unjustified if the consequences for the employee outweigh those for the employer, if no reason for the dismissal is given, or if the dismissal runs counter to current practice or agreement in that industry or company.
Termination of employment in the Netherlands is governed by the Civil Code (CC), the Extraordinary Labor Relations Decree (ELRD), the Dismissal Decree (DD) and the Collective Redundancy (Notification) Act (CRNA).
In cases where the law remains silent, or where its regulations are not mandatory, collective labor agreements may also constitute a source of law. Some subsections of the CC stipulate that departure from the main principle is allowed, but only under a collective agreement or an arrangement made by or on behalf of a competent public body.
Additional information can be found the website of The international labour organization.
- Legal Framework
- Standard civil procedures
- Competent Legal Body
- Local labor officers, trade unions, labor court and civil court.
- Social Dialogue and Involvement of Social Partners
- The main trade unions are the FNV (Dutch trade union center) and the CNV (Christian trade union center).
- Unionization Rate
- 28 %.
List of all Dutch trade unions
- Regulation Bodies
Ministry for Social Affairs & Employment
Confederation of Netherlands Industry and Employers (VNO-NCW)
Any Comments About This Content? Report It to Us.
American firms register relatively few trade complaints against Dutch firms. The Dutch tendency to support a level playing field in trade matters and their depth of experience in trade positions them as the genuine "neutral" traders of Europe.
U.S. Commercial Service Netherlands on 6 Jan 2010 related to Contracts in the Netherlands
Find the related Dutch companies with Kompass:
U.S. Department of Commerce, the Netherlands