Ensuring good terms of employment

What are terms of employment?

Terms of employment are the terms or agreements you make with your employees about the work they do. For example, salary and working hours. Oral agreements on employment conditions are valid. But it is better to put the agreements in writing. You do this in an employment contract. This is a contract between you and your employee.

What is a terms of employment interview?

You must give your employee clear information about the terms of employment. For example, during an employment conditions interview (arbeidsvoorwaardengesprek). You then discuss together the conditions such as working hours and days, salary, and number of days off. But also other conditions such as training or a company car. You also provide information about where the work is done and whether your employee is entitled to training. During the terms of employment interview, you should also give clear information about the salary for irregular work.

Read more about the legislation for clear employment conditions.

Types of terms of employment

Primary terms of employment

Primary terms of employment are the main matters you need to agree on with your employee. Such as the wage, the position, and the number of hours that someone works. Primary terms of employment form the core of the employment contract. The main terms are:

• salary
• deductions and settlements from the salary
• any allowances, bonuses, commissions (in Dutch)
• holiday allowance
• working hours
• leave days and leave arrangements

Secondary terms of employment

Secondary terms of employment are the conditions that come on top of the primary ones. Examples of secondary employment terms are:

• 13th month
• travel allowance
• pension scheme
• education opportunities
• career guidance
• company car

Tertiary employment conditions

Tertiary employment conditions are provisions that are difficult to express in monetary terms. Examples of tertiary employment conditions are:

• Christmas hamper
• use of the company canteen
• Sports or exercise during working hours
• high-quality work environment

Employment conditions in the law and collective labour agreement

Is there a collective labour agreement (CAO) for your sector? Check which agreements it contains about terms and conditions of employment. Some laws also contain rules related to terms of employment. The law prescribes a minimum for several employment conditions. You can make additional agreements about the conditions. These cannot deviate from the law or collective labour agreement.

Terms of a benefits scheme

You can also make separate agreements with your employees in a benefits scheme. The agreements in a benefits scheme do not automatically apply to every employee, like in a CAO. Each employee must agree to the arrangement again.

You must comply with the following laws and regulations:

As an employer, you adhere to the following laws and regulations:

• The Dutch Civil Code (Burgerlijk Wetboek, BW). This contains rules about, for example, trial period,holidays,notice period, and dismissal.
• Minimum wage and Minimum Holiday Allowance Act. This states that you must pay at least the minimum wage and minimum holiday allowance.
• The Working Hours Act (arbeidstijdenwet, ATW). Here you will find rules about working hours and rest periods.
• Working Conditions Act. You must ensure that your employees can work safely and healthily.
• Work and Care Act. Here you will find information about a number of leave schemes to which your employee is entitled.
• Legislation on equal treatment. You must not discriminate against your employees. There should be no difference in terms of employment between:

  • men and women
  • natives and immigrants
  • full-timers and part-timers
  • employees with a permanent or temporary contract
  • people with and without disabilities
  • healthy people and people with a chronic illness
• Pay salary on time. You must pay the employee wages on time. The employment contract determines when.
• Pay slip required. With the first salary payment, you must provide an explanation of the salary, the so-called pay slip.