Frequently Asked
Questions

As an employer, in principle, there is no obligation to offer your employees a pension scheme. This is different if your company falls under the scope of a mandatory sector-wide pension fund. In that case, you must pay premiums to the sector pension fund (Bpf) and the employees accrue pension.
Please consult one of our lawyers to determine if your company falls under the scope of a sector pension fund (Bpf).
If you do offer employees a pension scheme outside the obligation of the sector pension fund, you also have a duty of care if the existing pension scheme is amended. In that case, the appointed Works Council has a right of consent. Moreover, as pension is an employment condition, in changing the conditions for pension the strict labour law rules apply.

Employees on sick leave are entitled to continued payment of wages during the first two years of sick leave.
The law sets out an entitlement amounting to 70% of the salary, with a minimum of the statutory minimum wage. Many employment contracts and collective labour agreements (CLAs) set out that more than 70% is paid out.
The employee’s right to wages is conditional. The employee must cooperate in reintegration and wage sanctions may be imposed for non-compliance. After two years of sick leave, continued payment of wages is no longer mandatory for the employer, unless UWV (the Employee Insurance Administration Agency) has concluded that the employer did not fulfil their reintegration obligations. In that event, the employer may be subject to mandatory continued payment of wages for another period of time, with a maximum of one year.
During the two years of sick leave, a prohibition for termination is applicable. Upon expiry of mandatory continued payment of wages, this prohibition for termination ends.

Under Dutch law, the number of succeeding fixed term employment contracts is limited to three, but the total duration of fixed-term contracts may not exceed three years. The fourth contract or after the three years is automatically for an indefinite term. An interval of six months between contracts breaks the chain of consecutive temporary contracts. Please be informed that deviating arrangements could follow from the applicable CLA (collective labour agreement).

A non-competition clause must always be agreed in writing. In principle, a non-competition clause in a temporary contract is not valid. In exceptional cases, a non-competition clause in a temporary contract can be valid, if specific significant business interests for including this clause are explained in the clause in this specific case (and are actually significant).
In principle, in permanent contracts (non-temporary), the clauses agreed apply and these are binding to the employee. However, a valid clause may still be deemed unreasonable or objectionable. In such an event, the employee may request the court of law to restrict or void the clause.

If you have an indefinite term contract, you can terminate the employment agreement by giving notice taking into account the notice period as agreed upon in your employment contract. This is often the statutory notice period, which is one month for the employee. Notice must also be given at the end of the month. For example: if you want your last day of your employment to be on the 30 of April, you need to give notice ultimately on the 31 of March. Your employment contract may also include a different notice period. Note that if the employee’s notice period is more than one month, the employer’s notice period should be double. The collective agreement may also contain a different notice period.
If you have a temporary employment contract, it is only possible to terminate early if there is an interim notice clause in the employment contract. This clause prescribes the notice period to be observed. Similar as in an indefinite term contract, this can be the statutory notice period of one month or a longer notice period, taking into account the above stated.

The Dutch employment law system for dismissal is protective of employees. In most cases, the employer needs prior permission from the Employee Insurance Administration Agency (UWV) or the court to terminate employment. The employer has to have a reasonable ground for dismissal and redeployment in a suitable position within the company is not possible. Termination during the trial period and summary dismissal (such as in case of fraud or theft by the employee) is an exception to this rule.

A trial period can be agreed upon in writing in the first employment contract. If the employment contract has a duration of six months but less than two years, the maximum trial period is one month. For fixed term contracts with a duration of more than two years or for indefinite term contracts, the maximum duration of the trial period is two months. Trial periods in an employment contract with a duration of less than six months are invalid.

Yes, if the employer terminates the employment contract or does not extend the contract, then you are entitled to the statutory transition compensation (in Dutch: transitievergoeding). This payment amounts to 1/3 of your monthly salary multiplied with the duration of your employment with the employer in question. There is no entitlement to the transition compensation if the termination or non-extension of the contract is a result of grave culpable behaviour from your side.

Dutch law offers you several options for collecting outstanding invoices. Of course, you can send demand letters, but if those do not help, you can take the matter to court. You can also seize assets or file for bankruptcy. It is important that you build a good case file covering 1. the amount of the claim, 2. all relevant correspondence and supporting documents such as invoices and delivery notes, and 3. the attempts to collect the debt without the intervention of the court. With this information, we can advise you on your chances in legal proceedings.

You can always demand fulfilment of an agreement or request compensation. In addition to the agreement you have made with your supplier, this often also follows from the general terms and conditions that apply to the agreement. It is important that you can provide sufficient substantiation regarding the amount of the claim, the goods you ordered and the consequences of the incorrect delivery. If you send us that information, we can make a good assessment of your chances and develop a strategy with you. Of course, we will first have to determine whether Dutch law applies.

A creditor agreement or a debt cancellation arrangement may be a possibility to restructure business debts. A creditor agreement can even be enforced by a judge, provided the conditions are met, in a so-called WHOA procedure. It is important that you can sufficiently demonstrate that the company that wants to restructure its debts has a good chance of continuity and that the creditors are being offered sufficient in the context of a restructuring. We will gladly advise you on the steps to take and the strategy to follow.

Every bank in the Netherlands has the right to terminate a banking relationship. However, it must comply with certain rules. The duration, size and course of the credit relationship, for example, play a role, as does a decrease in creditworthiness or an increase in banking credit risk. Our specialists can use your case to determine what the bank could have done or whether the bank violated standards of due care. If it appears that the bank did not act correctly, we can help you take legal action against the bank to keep your account. We can also assist you in filing complaints about the actions of a bank with the Complaints Institute KIFID.

If you were disinherited, you may still be entitled to a statutory portion of the inheritance, known as the “legitime portie” in the Netherlands. This is a fixed share of the estate that children can claim, even if they were excluded from the will. The claim must be made within 5 years of the death of the deceased.

As an heir in the Netherlands, you can choose to accept the inheritance fully, accept it under the benefit of inventory (to avoid personal liability for debts), or reject it entirely. You must make this decision within three months of the inheritance becoming available.

Yes, you can get divorced in the Netherlands even if you live abroad. Dutch courts have jurisdiction if you or your spouse are Dutch citizens, live in the Netherlands, or have a strong connection to the country. A Dutch lawyer will handle the process, and in most cases, you won’t need to be physically present. Make sure your marriage is properly registered and provide any necessary documents, such as a legalized marriage certificate.

To get divorced in the Netherlands, you need a Dutch lawyer to file a petition with the court. The court will review your case and issue a divorce decree, which must then be registered with the municipality where your marriage was recorded to finalize the divorce.

Yes, if you are a diplomat who is about to be deployed to another country, then it is possible for you to rent out your residential property for the time you are away by including a so called ‘diplomatic clause’ in the tenancy agreement. This clause allows you to terminate the agreement and return to your property at the end of your deployment. For more information, see this article.

Yes, if the tenant has signed a tenancy agreement, then it is their (main) obligation to pay the rent. If your tenant has stopped paying rent and incurred rent arrears, they are in breach of contract which under conditions allows you to terminate the tenancy agreement. You can either terminate the lease by giving notice, or dissolve the agreement. For more information, see this article.

Yes, in principle a landlord is obliged to repay the deposit within 14 days after the end date of the lease. However, if you still owe your landlord money or if there are damages to the property that are for your account, the landlord may deduct this from your deposit. In that case they must pay back the remaining deposit within 30 days. If your landlord does not, you can engage a bailiff to reclaim the deposit.

The first thing to know, is what type of business space you are renting (out). In the Netherlands, a distinction is made between so-called 290 business spaces and 230a business spaces. The former category concerns spaces for the operation of a retail business (e.g. restaurants and shops), the latter category concerns office spaces (e.g. storages spaces and showrooms). The legislation applicable to both type of spaces differs a lot; tenants of 290 business spaces enjoy far more protection than tenants of 230a business spaces. It is therefore important to know exactly what type of space you are renting (out) before entering into a tenancy agreement. For more information, see this article.

No, after the property is sold the new owner will automatically become your new landlord. They are bound by the legal rules for termination, the same as your previous landlord. The sale of the property does not terminate the tenancy agreement. If the new owner wants to use the property themselves (“urgent own use”), they can only terminate the agreement three years after they have notified you in writing that they are the new owner. For more information, see this article.