Probation Period in the Netherlands for Expats

Working in the Netherlands is both a career move and a life-changing decision. Before you take the big step of deciding to move, you’d want to learn more about your rights as a foreign employee. Getting used to the new country takes time, so knowing how much time you have to prove your worth is essential. 

In this article, we’ll cover everything you need to know about the probation period in the Netherlands and key tips for completing it successfully. 

What is the Probation Period in the Netherlands?

Regarding a probation period, Netherlands allows employers and employees to have an exit clause if they are dissatisfied. Of course, the trial period is critical to companies, as they want to keep the flexibility of getting out of the contract. An employer can dismiss a worker during this period, even if the person is on sick leave. So what is the probation period, and how does it work?

The probation period in the Netherlands acknowledges that new employees need security, especially if they’re moving to the Netherlands to work. Dutch work law identifies several durations of the Dutch probation period, meaning they depend on the types of employment contracts. It’s important to note that the contract is only valid in writing.

Types of Probationary Periods in the Netherlands

The Netherlands probation period for employment contracts can last up to two months, depending on the contract’s length. A short trial period forces companies to decide the employee’s future. Below is a list of all types of probationary periods in the Netherlands.

During the probationary period, Dutch companies can terminate a contract without an employee’s notice period. The same goes for employees, allowing them to change their minds if the job doesn’t meet their expectations. It’s important to note that contracts maximum probationary period can’t be longer than six months, even if there’s an agreement between employer and employee. To conclude, for the probationary period, Netherlands consider these contracts illegal.

Tips for Employers and Employees During Probation

Good communication and regular feedback during the evaluation period are essential for workers’ development. The best probationary period advice is to inform everyone about work expectations. If everyone is informed about work expectations, it will be easier for both the employer and employee to reach goals. 

Employer Tips

• Be honest about what you expect from workers.
• Set clear goals.
• Reward good workers.
• Health and security in the workplace are priorities.

Employee Tips

• Don’t be late.
• Respect the company rules.
• Do your job to the best of your abilities.
• Respect your coworkers.
• Always look to improve your skills.

Types of Employment Contracts in the Netherlands

The Dutch employment law recognises two types of employment contracts in the Netherlands:

• Permanent employment contracts have no end date and can be terminated within a two-month probation period. After that, an employer can only end an employment agreement for valid reasons determined in Dutch labor law. 
• Temporary employment contracts (or fixed term contracts) have a set ending date, after which the employer has no contractual obligations towards the worker. These temporary employment contracts are often used for seasonal workers, project-related employees, and part-time workers.

While an employee may be offered three consecutive fixed term contracts, the contract will be converted to a permanent contract if the total length exceeds 36 months (three years). 

The law stipulates that the fourth fixed term contract must be permanent, even if previous contracts were shorter than 36 months.

What is a Collective Labour Agreement (CAO)?

Besides the basic rules set by Dutch labour law, companies often have special agreements with unions that stipulate special contract conditions. Those are collective labour agreements or CLA (in Dutch: Collectieve Arbeidsovereenkomst, CAO). Most jobs in the Netherlands fall under CAO.

There are two types of labour agreements: sectoral collective agreements and company collective agreements. The former refers to contracts within one sector (type of work), while the latter refers to company-level labour agreements for all employees. CAOs can offer only better working conditions than the ones stipulated by law. If a company has a collective labour agreement, employment terms can’t oppose CAO.

Impact of CLAs on Employment Contracts

Collective labour agreements (CLAs or CAOs) in the Netherlands can affect the terms and conditions of employment contracts. By doing so, they provide additional employment rights and protections. By setting a baseline, CLAs ensure a certain level of worker protection for employees, regardless of their employment contracts. These agreements determine, among other things:

• wages, 
• working hours, 
• notice periods, 
• transition payments,
• pensions.

Tailoring Employment Contracts through CLAs

CLAs (CAOs) allow employers and employees to tailor employment contracts to their needs. Below are several options that enable both parties involved to get the best possible agreement:

• Individual agreements may be allowed under CLA as long as these deviations benefit the employee.
• Collective bargaining allows employers and employees to negotiate collective agreements at the company level, which may include provisions beyond those in the industry-wide CLA or set as a minimum under Dutch employment law.
• CLAs may include flexibility clauses that allow for deviations from certain requirements under specific circumstances, such as economic hardship or individual employee needs.

What Are More Favourable CLA Terms?

• • Better salary: CLAs often set wages above the minimum wage and may include provisions for wage increases based on seniority or reached performance expectations.
  • Improved working conditions: CLAs can establish safer working environments, shorter working hours, or more flexible work arrangements.
  • Additional benefits: CLAs may offer company-sponsored training, additional health insurance, childcare subsidies, unlimited paid time off, or employee assistance programs.

• Improved termination procedures: CLAs may offer improved conditions in case of contract termination, like longer notice periods and better transition payments.

Termination of Employment Contracts in the Netherlands

Termination of a contract can be one-sided (from employee or employer), in which case there has to be a notice period. The law also determines a termination agreement (vaststellingsovereenkomst in Dutch), where both sides agree to end the working arrangement.

In that case, the company can offer a settlement agreement. By doing so, the employer avoids the dismissal process via the Employee Insurance Agency and employment tribunal.

Legal Reasons for Termination

The employer can terminate an employment contract with a valid reason. Valid reasons for termination of employment include performance issues, misconduct, unsatisfactory work, insubordination, redundancy, and breach of contract. Another reason is when the employee has reached retirement age.

Situations When the Employer Can’t Dismiss the Employee

Dutch labour law acknowledges situations where an employee is protected from losing a job. Situations when the employer can’t dismiss the worker are:

• For the first two years, that employee is sick or unfit for work.
• If the company has not done enough to help the employee return to work.
• During pregnancy and maternity leave, and six weeks after the return to work.
• During parental leave.
• An employee has left the country because of compulsory military service or alternative service in the country of origin.
• Member of a trade union or a political organisation.
• If the employee doesn’t want to work on Sunday.
• In the case of a company takeover.

What is the Notice Period in the Netherlands?

When the maximum probation period ends, workers can still have their employment contract terminated. In cases of dismissal, they must be given a valid reason with a notice period. According to Netherlands labour law, the notice period is when the employer provides the employee with notice before terminating their contract. Employer’s notice period must be twice as long as the employee’s notice period.

The length of the notice period depends on how long the worker has been under contract with the company. The notice period is at least one month but can last up to four if an employee has 15 years or more in the company. A shorter period is possible only if it’s agreed upon in a collective labour agreement. In the same way, the notice period can be prolonged to six months. There’s no difference between collective and individual firings. 

When Does the Notice Period Start in the Netherlands?

The notice period in the Netherlands starts when the employee receives a written notice of termination. That means the employer may inform the worker that they’re fired, but it won’t be official until they receive that decision in writing. In the layoff notice, the company must state the exact firing date and all the employee benefits the worker is entitled to. One of them is the transition payment.

What is a Transition Payment in the Netherlands?

According to Dutch law, transition payment is the type of severance an employee must give to the employee whose contract has ended. The amount depends on the worker’s monthly salary and years worked. It’s important to note that transition payments apply to permanent and temporary contracts. 

The payment can’t exceed €94,000 or one annual salary if the employee earns more (gross). The amount may change as the authorities review the amount each year. Transition payment in the Netherlands is mandatory in the following cases:

• The company dismisses an employee.
• The company didn’t extend the contract of an employee.
• An employee resigns following wrongful actions on the company’s part (for example, any type of discrimination or harassment).
• An employer is not following the rules of reintegration after an extended absence from work (for example, pregnancy or illness).

How to Get a Transition Payment

Dutch law states that workers can receive transition payments regardless of their length of service with the company. To obtain severance pay in the Netherlands, follow the compensation process below.

1. Your employer will officially inform you that your contract has been terminated.
2. Read your contract to make sure what labor rights you have. 
3. Seek legal advice from a trade union.
4. Talk to other employees who have undergone this process in your company. 
5. Talk to your direct supervisor or Human Resources employee to learn more about the next steps in the process. Find out if there’s an option for a settlement agreement (it doesn’t mean you won’t get a transition payment).
6. Calculate how much money you’re entitled to receive. 
7. If needed, seek legal representation if it’s necessary to go to labor court. 
8. Double-check everything before you sign.

How to Resign in the Netherlands

Unlike employers, you don’t need any particular reason for wanting to quit your job. In case of resignation, the labour law in the Netherlands doesn’t specify a procedure you must follow, but if you wish to end your contract on good terms with an employer, follow the instructions on how to resign in the Netherlands:

1. Although no law orders it, sending a resignation letter is strongly encouraged. 
2. Write a resignation letter to inform your employer why you chose to leave the company.
3. Deliver it personally or send it via e-mail. Either way, it will be recognised in court if necessary.
4. Talk to your HR or your boss about the possibility of the settlement agreement.
5. Negotiate your notice period. By Dutch law, you must give one month notice when resigning unless it’s specified in your contract. While the notice period can be shorter than a month, it can’t be longer than six months.
6. If you encounter any problems, talk to your trade union representative.

Employee Rights and Protections in the Netherlands

If you’re coming to the Netherlands to work, guaranteeing employee rights and protections is essential. The Dutch employment law provides significant legal protections, fair treatment, and the prevention of unjust, one-sided practices.

Legal Protections for Employees

By signing a contract under Dutch labour law, you’re entitled to various situational protections that have legal consequences and employment law implications:

• Unfair dismissal (wrongful termination)

Thanks to Dutch labor rights, employees are protected against unfair dismissal or wrongful termination of contracts. That means an employer cannot terminate their contract without a valid reason. The law recognises various grounds for dismissal, such as misconduct, ineptitude, or redundancy. Employees who believe they have been unfairly dismissed can file a claim with the court.

• Working hours

The Working Hours Act (Arbeidstijdenwet) limits the number of hours employees can work weekly and daily. There are also regulations regarding overtime pay and rest periods. Workers aged 18 and over can work 12 hours per day and 60 hours per week. This is the exception, as the average is 48 hours a week over 16 weeks or 55 hours per week over four weeks.

• Leave arrangements

Employees are entitled to a certain number of vacation days each year, including partner/paternity leave, parental leave, adoption leave, etc. A pregnant employee has a right to leave work when she has a check-up during working hours. 

Special leave is not recognised in Dutch employment law but can often be found in collective labour agreements (CLAs). If CLA recognises extraordinary circumstances, workers may get additional days off for situations like: 

• Marriage
• Death in the family
• Moving 
• Work anniversary
• Obligations at the university or professional training
• Union activities

• Discrimination 

Dutch labour law prohibits discrimination based on age, gender, race, religion, political view, life principles, civil status, sexual orientation, disability, nationality, pregnancy, and type of contract. This protection extends to all aspects of the employment relationship, including hiring, promotion, training, and dismissal.

• Minimum wage

Employees have the right to a minimum wage set by the government. The minimum pay is regularly updated to reflect changes in the cost of living. Employees have a right to 70% of their salary during the absence period. An employee must pay the minimum salary if this is less than the minimum compensation.

• Health and safety at work

Employers must provide their employees with a safe and healthy working environment. Quality working conditions include taking measures to prevent accidents and occupational diseases. Larger companies often employ a company doctor or an occupational health and safety agency to support their workers.

How to Ensure the Best Working Conditions in the Netherlands

If you’re an EU citizen and plan to move to the Netherlands for work, your first goal is to ensure you have a job with a trusted employer. One of the best ways to provide the best working conditions under Netherlands employment law is to work with an international recruitment company with a proven track record. 

As a foreigner, you’ll need help finding a job, relocating, and settling in. Choosing one of the best jobs in the Netherlands with the help of Robin recruitment agency will make your transition to work abroad much easier.