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If you have a business in the Netherlands and want to employ permanent or temporary staff, you can use this checklist to find out which obligations you must fulfil. This checklist also includes a number of obligations relevant for employing staff from outside the Netherlands. If the information you are looking for is not on this page, please consult the other checklists in this section.
Prepare for the Balance Employment Market Act (WAB)
On 1 January 2020, the Balance Employment Act comes into force, and the rules for labour and social security will change, for instance unemployment benefit premiums, labour conditions, and transition payments. As an employer, you must prepare for these changes. Read the checklist to find out what you need to do before 1 January.
Most of the regulations concerning hiring staff apply to both permanent and temporary staff. But there are some differences. If you plan on hiring temporary staff through an agency or secondment supplier, take into account the following:
- Check whether the agency or secondment supplier is listed in the Dutch Commercial Register: as a hirer, you risk a fine for working with suppliers that are not registered properly. You can check their registration using the KVK (Dutch-language) Waadi check (Workers Allocation By Intermediaries Act, Waadi).
- Make sure the intermediary has arranged a work permit for your temporary workers from outside the EEA/Switzerland.
- Avoid liability for taxes owed by your intermediary; the Dutch Tax and Customs Administration may hold you liable for the payroll tax and turnover tax owed by your intermediary. One way of preventing liability for payroll tax and turnover tax is to ask the organisation that hires employees out to you to set up a blocked account (G account).
- If the temporary worker you hire is foreign, they may still be covered by social insurance in their own country. In that case you do not have to pay social security contributions for this worker. To be certain on this point, you can ask your intermediary to submit an A1/certificate of coverage.
Is your supplier SNA-certified?
By doing business with an SNA-certified company, you run less risk of claims from the Dutch Tax and Customs Administration if this company fails to meet its obligations.
1. Screen your future employees
When you employ workers who will hold integrity-sensitive positions, you may want to screen future employees. This is not only possible when employing regular staff, but also for interim personnel, self-employed professionals, temporary staff, interns and volunteers.
2. Verify and register the identity of your employees
You have to verify the identity of all workers on the basis of an original identity document when they join your company. You must keep a copy of the identity documents in your records.
Can a sole proprietor employ staff?
A common misconception is that a sole proprietor or one-man business (eenmanszaak) cannot employ staff. This is not true. A sole trader can hire personnel or temporary employees; the term 'sole' only refers to the legal liability of the business structure.
3. Register as an employer with the Dutch Tax and Customs Administration
If you are employing personnel for the first time, you must register as an employer with the Dutch Tax and Customs Administration. You will then receive the necessary forms to meet your payroll tax obligations.
4. Enter into a contract of employment
In a contract of employment, you specify the employee’s salary, indicate whether a Collective Labour Agreement applies, outline working hours and rest times, and indicate whether you arrange an employee pension scheme.
5. Pay at least the minimum wage and holiday allowance
6. Provide healthy and safe working conditions
As an employer, you must ensure a healthy and safe work place for all your personnel. The SZW Inspectorate or your sector organisation can provide you with information about the rules.
7. Draw up a risk inventory and evaluation (RI&E)
Once you employ personnel, you are obliged to draw up a risk inventory and evaluation (RI&E) in which you state the risks faced by personnel and the measures you have in place to address these risks.
8. Deduct social insurance premiums
You must deduct social insurance premiums for employees who work permanently in the Netherlands. You can choose to become a self-insurer for the occupational disability insurance scheme.
9. Verify if your employee has taken out health care insurance
Your employee should have taken out a standard Dutch health care insurance policy. If they are not properly insured, the Dutch National Health Care Institute will take out health insurance for them. You will then have to pay back the premiums paid for this insurance by the Institute.
10. Try to find personnel in the EEA first
You are obliged to recruit personnel initially in the European Economic Area (EEA) and/or Switzerland. Only if you prove that you cannot find suitable personnel here will you be permitted to recruit from other countries.
11. Apply for a work permit (if needed) or a combined permit for residence and work
If you employ someone who is not from the EEA or Switzerland for less than 3 months, you must apply usually for a work permit from the Employee Insurance Agency (UWV). If you employ someone for 3 months or longer you must usually apply for a combined permit for residence and work: the Single Permit.
12. Organise suitable accommodation when employing foreign staff
You are obliged to find suitable accommodation for employees who need a work permit. You must observe the relevant rules applicable in your municipality.