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Local Employment Contract for the Netherlands

Local Employment Contract Template for Netherlands

A Dutch employment contract is a legally binding agreement between an employer and employee, governed by Dutch labor law and specifically the Dutch Civil Code (Burgerlijk Wetboek). This document establishes the terms and conditions of employment, including essential elements required by Dutch law such as position, salary, working hours, and leave entitlements. It incorporates mandatory provisions under Dutch employment legislation, including notice periods, holiday allowance, and sick leave arrangements, while also addressing company-specific requirements and any applicable collective labor agreements (CAO).

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What is a Local Employment Contract?

The Local Employment Contract is a fundamental document required for all employment relationships in the Netherlands, designed to comply with Dutch labor law requirements and protect both employer and employee interests. This document is essential when hiring employees in the Netherlands, whether for indefinite or fixed-term periods, and must include all mandatory elements specified in Article 7:655 of the Dutch Civil Code. It serves as the primary reference point for the employment relationship, incorporating statutory requirements, company policies, and any applicable collective labor agreement terms. The contract should be provided to the employee in writing or electronically, with explicit attention to Dutch-specific elements such as the statutory holiday allowance, notice periods, and working hours regulations.

What sections should be included in a Local Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and reference to any prior agreements or negotiations

3. Definitions: Key terms used throughout the agreement

4. Position and Duties: Job title, role description, and main responsibilities

5. Commencement and Duration: Start date, type of contract (fixed-term/indefinite), and probationary period if applicable

6. Place of Work: Primary work location and any flexibility arrangements

7. Working Hours: Standard working hours, days, and flexibility requirements

8. Salary and Benefits: Base salary, payment frequency, holiday allowance, and other fixed benefits

9. Holidays and Leave: Annual leave entitlement and public holidays

10. Illness and Incapacity: Sick leave procedures and sick pay arrangements

11. Confidentiality: Obligations regarding company confidential information

12. Intellectual Property: Ownership and rights to work-related inventions and creations

13. Notice Period: Notice requirements for termination by either party

14. Company Property: Provisions regarding company equipment and return upon termination

15. Applicable Law: Reference to Dutch law and jurisdiction

What sections are optional to include in a Local Employment Contract?

1. Non-Competition Clause: Restrictions on working for competitors after employment ends - only valid if justified by business interests and with reasonable scope

2. Non-Solicitation: Restrictions on approaching clients/employees - used for client-facing or management roles

3. Bonus Scheme: Details of variable compensation - used when offering performance-based incentives

4. Company Car: Terms for provision and use of company vehicle - when applicable

5. Remote Working: Specific arrangements for working from home or other locations - for hybrid/remote roles

6. International Travel: Terms for international work requirements - for roles involving travel

7. Training and Development: Specific training commitments and study cost arrangements - when offering education benefits

8. Share Options/Incentives: Terms of equity-based compensation - for senior roles or when offering share schemes

9. Works Council: Reference to works council rights and obligations - for companies with works councils

What schedules should be included in a Local Employment Contract?

1. Schedule 1 - Salary and Benefits Details: Detailed breakdown of compensation package including specific amounts

2. Schedule 2 - Job Description: Detailed description of role, responsibilities, and reporting lines

3. Schedule 3 - Company Policies: Reference to or summary of key company policies applicable to the employment

4. Schedule 4 - Bonus Scheme Rules: Detailed rules and calculations for variable compensation if applicable

5. Schedule 5 - Collective Labor Agreement: Reference to applicable CLA terms if relevant

6. Appendix A - Confidentiality Agreement: Detailed confidentiality obligations and procedures

7. Appendix B - Company Equipment List: List of company property provided to employee

8. Appendix C - Remote Working Policy: Specific terms and conditions for remote working arrangements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions



































Clauses








































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Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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