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Employment Law in Netherlands

Employment Law in Netherlands

Updated on Wednesday 09th September 2015

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The relationship between the Dutch employer and the employee is based on an employment contract which usually contains in the rules and regulations both parties must follow, the obligation of the employer to pay the employee and the undertaking by the employee to perform the activities required by the employee. These contracts can be on a definite period of time or indefinite period of time and can be in written or oral.
Before signing an employment contract, both parties can agree on a trial period after which can decide if the collaboration will continue or not.
 
Dutch Employer Obligations. The main obligations of the employer in Netherlands consists in paying the minimum wages (or a percentage of it in case of employees younger than 23 and a holiday allowance of at least 8 % from the salary. In case the employee is sick, it may request an amount equal with at least 70% from his salary (however, the period of time mustn't exceed 52 weeks).
Netherlands is one of the signatory states of the European Treaty related to the equality between men and women at work. As a consequence, there are no distinctions between the salary received by a men and a woman working the same.
 
Besides payment, the employees are entitled to receive a holiday with duration equal to at least four times the number of days worked per week.
 
Employee Obligations. The Dutch employees have the obligation to perform the kind of activity stipulated in the employment contract and respect the employer's instructions.
 
Cease of Employment. The Dutch employees may cease their activities in one of the three methods: at will during the trial period, by notice, by mutual consent, by summary dismissal or in more extreme situations by judicial decision.
 
An UWV WERKbedrijf (regional labor offices) permit must be obtained from the director of the regional labor office ("UWV WERKbedrijf") before delivering the notice to terminate activity. This permit is granted only if after checking the employer's and employee's interests, he finds the proposed termination acceptable.
There are various period of times granted to the statutory notice period which may vary from 1 month (if the employment has lasted 5 years or less), 2 months (if the employment has lasted between 5 and 10 years), 3 months (if the employment has lasted between 10 and 15 years) and 4 months (if the employment has lasted for 15 years or longer).
 
In case the parties decide to end the employment thorough mutual consent, no notice is required and both parties agree on the condition of termination.
 
In special situations (such as theft, divulges confidential information or embezzlement) the employer can chose to give up the services from an employee through summary dismissal which is also not requiring a notice.
If the employee wants to contest this decision it may submit a petition based on the fact that there was no UWV WERKbedrijf permit. Due to this, the employee may recover the amount of money corresponding the period of time which should have been allocated to the statutory notice period granted usually.
 
In serious cases where the circumstances are allowing it, the Court may decide to rescind a employment contract. In this case the concern parties can be represented in Court by legal representatives. 
 

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