In the Netherlands, there are a variety of contracts to suit the needs of each business. The most common hiring procedure consists in offering a temporary or permanent contract depending on what the company requires. Below you will find a description of each of these two contracts so you can get familiar with them:  

Temporary contracts:

This type of contract has a fixed end date, after its conclusion the employer can decide to start a new contract or terminate the employment relation without the need for any dismissal process. However, the employer is obliged to inform the employee at least one month in advance if the contract is to be renewed or not.

Companies may employ people on fixed-term contracts because they have projects with specific needs within a specific time frame. It is also generally used since some companies prefer not to go for a permanent contract in the first instance as they want to know the employee’s skills and abilities, as well as their fit with the company, before offering a permanent contract.

Keep this in mind! Dutch labor law has required companies to move to a permanent contract if the employee has received more than 3 consecutive temporary contracts or if the employee has had multiple temporary contracts with the employer for more than 3 years. This applies unless other arrangements have been made in the CAO (Collectieve Arbeidsovereenkomst – Collective Labor Agreement)

Permanent contracts:

This type of contract does not have an end date and it can only be terminated if the employee resigns or if the employer finds a valid reason to dismiss the employee, within strict compliance with the law.

Regarding the benefits for the parties involved, a permanent contract is of great use for a company when staff are required to undergo a longer training process and involve a significant investment of resources. At the same time, it also benefits the employee by providing stability and a greater sense of belonging and motivation to perform their duties for their own and the company’s growth.

It’s important to point out that the law foresees a specific and strict procedure for permanent contracts termination, aiming to protect the employee’s rights.

Are you looking for some extra help?

If you have any questions, please do not hesitate to contact us! We will help you determine which type of contract is most suitable for each of your company’s needs. In addition, we offer full contract management services, which means you don’t have to worry about regulations, terms and conditions, deadlines, and any other contract-related administrative tasks. We have a tailor-made service that will contribute to the success of your business.

only show blogs for


Navigating Holiday Allowance and Paid Time Off

Navigating Holiday Allowance and Time-Off Policies in the Netherlands

Summer is here in the Netherlands, which means everybody is preparing their out-of-office messages for their holidays! It is also the time of year businesses really review their time-off policies in the Netherlands. Although employers in the Netherlands are required ...

Sustainable employment

EXPLAINED: Sustainable Employment and its Core Elements 

What is Sustainable Employment?  Sustainable employment is creating and maintaining jobs that are stable, fulfilling, and capable of bearing economic and social changes. It is the commitment to long-term job security, fair wages, and healthy working conditions while supporting employees’ ...

Difference between employer of record and payroll services

Why the decision matters: the difference between EOR and payroll

Employer of Record (EOR) services and payroll services are two approaches businesses can utilise to manage their workforce. They are key resources that can be used when looking to expand into a new market.

Employer of Record blog - EOR

EXPLAINED: Employer of Record (EOR) Services

Expanding to a new market is an exciting time for any business. There is plenty of opportunities in the Netherlands, but also plenty of room for risk and costs. One way to mitigate some of this risk, while also taking ...

Orientation year: guide for international graduates in the Netherlands

Orientation year 2024: guide for international graduates in the Netherlands

An Orientation Year (or zoekjaar, in Dutch) is what allows international students to live and search for a job in the Netherlands for up to 12 months.

Recruitment and AI

Navigating recruitment in the age of AI

AI is changing how companies find and hire people. AI tools make recruiting faster and more efficient, taking over tasks that used to take a lot of time and effort. But using AI in hiring also comes with challenges. In this post, we’ll look at the pros and cons of using AI in recruitment.

Works council

EXPLAINED: Works councils in the Netherlands

Are you familiar with the ‘Works Council’ for businesses in the Netherlands? A works council in the Netherlands is probably the most important representative body of employee interests for a company. A works council (in Dutch: ondernemingsraden, OR) is made ...

5 reasons your Dutch HR team wants you to take your holidays

5 reasons your Dutch HR team wants you to take your holidays

In today’s fast-paced and competitive workplace, employees are always feeling pressured to not take their paid time off for any reason, no matter how much they might need it or even want it. In some business cultures, this is intentional. ...