Netherlands Labor Management QA
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Ms. Anna Wang, Speak Dutch, English and Chinese.
skype: burlinna
LRC –Netherlands Labor Regulations
LRC-NL-20.10
What must be included in the contents of a labor contract in Netherlands?
Evershine RD:
According to Dutch Civil Code (as amended), art. 7:655.
The employer must put in writing such things as:
- Wages
- Hours
- Job title
- Start and duration of the contract
- Duration of probationary period
- Location of work
- Pension benefits and
- Information about the collective labor agreement if there is one.
Effective Aug.1, 2022, employers must provide additional information to employees, in writing, about terms of employment such as procedures to follow when terminating employment or when work is not performed at a fixed location.
LRC-NL-20.11
Do Netherlands arrange labor contract in fixed term?
What should be the length of the labor contract in Netherlands?
Evershine RD:
Yes.
Employers cannot hire the same employee for more than 2 years on consecutive temporary contracts.
After 2 years of temporary contracts or when a fourth contract is offered, the new contract must be of a permanent contract if there is a period of at least 6 months between the 2 contracts.
Otherwise, it is legally viewed as 1 contract with consecutive days.
LRC-NL-20.20
What is the minimum age for hiring new employee in Netherlands?
Evershine RD:
The minimum age for employment without restriction is 18.
16 and 17 years-old may be hired but can only work 8 hours a week and cannot work overtime, at night or in hazardous occupations.
LRC-NL-20.40
Is it a requirement for employer in – Netherlands to conduct a pre-employment background check?
Evershine RD:
Preemployment drug testing is illegal.
LRC-NL-20.50
Is the Non-Competition indemnity clause in labor contract in Netherlands has legal effect?
Evershine RD:
According to Dutch Civil Code (as amended), art. 7:653. For all contracts entered into after Dec. 31, 2014, noncompete clauses are prohibited unless the contract specifies the necessity for such a clause and how the employer’s need for the clause outweighs the disadvantages to the employee.
Noncompete agreements are valid if entered into before Jan.1, 2015, in writing and do not too severely restrict a person’s ability to find a new job.
LRC-NL-40.05
What are the regulations on Gender Discrimination in employment specifically for female workers in Netherlands?
Evershine RD:
According to Working Conditions Act, 1998, art. 4; Dutch Civil Code, art. 7 (English).
Women cannot be fired because of pregnancy, during related leave or within the first 6 weeks after their return to work from maternity leave.The Working Conditions Act, which addresses carious employment-related health and safety issues, prohibits sexual harassment, and requires employers to put in place policies to prevent it.
Employers must provide equal pay for equal work.
LRC-NL-50.10
Can the employer in Netherlands collect, or process data transmitted by employees over the internet?
Evershine RD:
According to General Data Protection Regulation, 2016.
Employers can monitor employees only if there is a lawful basis for doing so.
Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures.
Employees must be given prior notice, and any data that is collected must be used and kept only to fulfill its original purpose.
LRC-NL-60.10
What are the regulations on working hours in Netherlands?
Evershine RD:
Full-time employment usually ranges from 36 to 38 hours per week.
According to Working Hours Act, 1996 (as amended), SS 5:2 – 5:8.
The maximum workday is 12 hours, and the maximum workweek is 60 hours.
Over a 4-week period, and employee’s workweek cannot average more than 55 hours, and over a 16-week period, it cannot average more than 48 hours.
LRC-NL-60.30
What are the regulations on overtime hours in Netherlands?
What is the overtime premium rate in Netherlands?
Evershine RD:
Dutch law does not provide a national standard for overtime.
Premium pay rates are typically established in employment contracts or collective bargaining agreements.
LRC-NL-60.50
Is it common to pay 13th month’s salary in Netherlands?
Evershine RD:
The Netherlands does not require employers to provide bonus payments to employees, but a month’s extra salary (13th month bonus) is customarily given to employees in November or December.
LRC-NL-70.10
What are the regulations on general leave policy for employee in Netherlands?
Evershine RD:
According to Dutch Civil Code (as amended), arts. 7:634, 7:638: Minimum Wage and Minimum Holiday Allowance Act, 1968 (as amended), art. 15 (Dutch).
Employees receive annual vacation leave of at least 4 times the number of days they regularly work each week.
For example, an employee who works 5 full-time days a week receives 20 days – 4 weeks – of paid vacation each year.
Many collective bargaining agreements provide for more than the minimum vacation allowance, often 25 days.
In addition, employees are paid a holiday allowance each year that amounts to 8 percent of their gross annual salary.
Unused leave can only be carried over for 6 months.
LRC-NL-70.20
What are the public holidays in Netherlands?
What is the overtime premium rate during public holiday in Netherlands?
Evershine RD:
Dutch law does not require employers to give workers national or public holidays off or to pay them extra if they work on those days, so employer policies on holiday leave are established by collective bargaining agreements or employment contracts.
The Netherlands recognizes 2 national holidays: the Kings’s birthday, April 27, and Liberation Day, May 5, celebrating the end of World War II.
Generally observed public holidays include:
- New Year’s Day
- Good Friday
- Easter Monday
- Ascension Day (the 40th day after Easter Sunday)
- Whit Monday (the day after Pentecost, which is the seventh Sunday following Easter)
- Dec. 25: Christmas Day
- Dec. 26 (Boxing Day)
LRC-NL-70.30
What is the maternity leave policy for female employee in Netherlands?
Evershine RD:
According to Working Time Act, 1995 (as amended), art. 4:8 (Dutch); Work and Care Act, 2001 (as amended), art. 3:8 (Dutch).
Female employees are entitled to a minimum 16 weeks’ pregnancy and maternity leave.
Maternity leave can begin up to 6 weeks and should start no later than 4 weeks before the baby is due and can continue for at least 10 weeks after birth even if delivery is later than expected.
The maternity pay rate is 100% of the employee’s most recently earned salary up to a maximum of 100% of the daily pay set by national social security legislation.
The employer pays the salary and is reimbursed by the government.
LRC-NL-70.40
What is the paternity leave policy for male employee in Netherlands?
Evershine RD:
According to Work and Care Act, 2001 (as amended), art. 4:2 (Dutch); Act Introducing Extra Birth Leave, 2018 (Dutch).
An employee whose wife or partner gives birth is entitled to 6 weeks of unpaid leave, which can be taken within 6 months of the birth of the child.
Employees who take unpaid leave may claim benefits from the Employment Insurance Agency for up to 70% of their salary.
LRC-NL-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in Netherlands?
Evershine RD:
Sick Leave
According to Dutch Civil Code (as amended), arts. 7:629.
If a temporary or permanent employment contract is in effect and a worker becomes ill, up to 2 years of paid sick leave is provided at a minimum of 70% of the wages the employee last earned.
Long-term compassionate leave
This is unpaid unless otherwise provided in the employer’s collective bargaining agreement is granted when an employee must take care of a seriously ill child, partner, or parent over an extended period.
The employee must request leave 2 weeks in advance and is entitled over a 12-week span each year to up to half the number of hours he or she normally works.
Family care leave
Employees get 10 days a year of leave compensated at up to 70% of salary under the Work and Care Act to care for a sick child, partner, or parent.
Employers may, however, have different rules under collective bargaining agreements.
LRC-NL-70.60
What are the regulations on pension benefits and social security insurance benefits for employee in Netherlands?
Evershine RD:
The legal retirement age in the Netherlands is 66 years and 7 months in 2022.
In 2023, the retirement age rises to 66 years and 10 months and in 2024 and 2025 it will be 67 years.
From 2026 onwards it will only be increased if life expectancy continues to rise.
Under the General Old Age Pensions Act, Dutch residents who reach retirement age are eligible to start receiving a flat-rate pension benefit based on the net minimum wage and the person’s living situation.
Employees and employers make contributions to the social insurance system.
LRC-NL-70.70
What are the regulations on Workers’ Compensation for employee in Netherlands?
Evershine RD:
Employers pay into the workers’ compensation system, which is governed by the Work and Income According to Labor Capacity Act.
An injured worker is entitled to paid sick leave for up to 2 years.If a worker has not recovered after 2 years, the Institute for Employee Benefit Plans will examine the person to determine the degree of incapacity, which is calculated in terms of how much the injury has affected the worker’s wages.
LRC-NL-80.05
Can the employee in Netherlands join labor union?
Evershine RD:
According to Works Councils Act (as amended), art. 2.
The Netherlands recognizes labor unions in the Collective Labor Agreements Act, under which unions have the right to negotiate wages, holidays, and other conditions of employment with employers.
Companies that have 50 or more employees (full-time and part-time) are required to establish works councils, which include worker representatives selected by employees.
Depending on company size, a works council can have up to 25 members.
After 3 months working for a company, employees gain the right to cast votes and be a candidate for the works council.
LRC-NL-80.06
How to handle labor dispute in Netherlands?
Evershine RD:
Labor disputes can be decided by arbitration as well as in court.
Collective bargaining agreements usually include provisions for resolving disputes that do not involve the courts.
LRC-NL-90.10
What are the regulations on workplace safety and health for employee in Netherlands?
Evershine RD:
According to Working Conditions Act, 1998, art. 3.
An employer is required to make risk assessments of safety issues and in consultation with work councils or employee delegations formulate policies to deal with any hazards discovered.
Employers must enter a contract with a certified health and safety provider to ensure that employees:
- receive expert supervision and guidance in case of illness,
- have direct access to a company doctor,
- have the right to request a second opinion from another company doctor, and
- can submit complaints when they are dissatisfied with the quality of care.
Effective Jan. 1, 2022, all workplaces in the Netherlands must be smoke-free.
Employers with 25 or more employees must appoint at least one employee-who has enough training and equipment to prevent and respond to accidents and emergencies- as a safety officer.
LRC-NL-100.10
What are the circumstances that an employer can terminate an employee in Netherlands?
Evershine RD:
According to Dutch Civil Code (as amended), art. 7:667 – 7:670.
Employment contracts can be terminated by mutual consent, during a probationary period or for various other reasons, including termination by operation of law and termination for failure to meet a condition of employment.
For example, an employee does not pass a certain employment test or does not obtain a required certification by a specific date.
LRC-NL-100.11
What is the notification period for terminating an employee in Netherlands?
How much is the severance pay?
Evershine RD:
1 month before the termination of a fixed-term contract (of 6 months or longer), employers are required to notify employees in writing as to whether the employment agreement will be extended or not.
If the employer does not notify the employee, it must pay the employee an amount equal to the salary that would have been paid during the notice period up to a maximum of one month’s salary.
In case of amicable termination where there is mutual consent, a 14-day reconsideration period is available.
Within those 14 days, employees may withdraw their consent to the termination, which would result in the continuation of the employment agreement or a reopening of negotiations toward a new settlement agreement.
Employees are entitled to a “transition allowance” in cases when the employer initiated the termination of the employment agreement and the agreement exceeded 24 months.
The amount of the payment is one-third of monthly wage per year of employment for the first 10 years of employment and half of the monthly wage per year worked thereafter.
The termination allowance cannot exceed 75,000 euros unless the employee’s yearly salary exceeds this amount, in which case this higher amount counts as the maximum.
LRC-NL-100.12
What is the reporting requirement for employer in Netherlands to notify the termination of employees to the competent authority?
Evershine RD:
Employers must obtain permission from the Public Employment Service before terminating an employment contract except in cases of summary dismissal or judicial intervention.
LRC-NL-100.20
What are the regulations on mass layoffs in Netherlands?
Evershine RD:
According to Collective Redundancy Act, 1976 (as amended), arts. 1-4 (Dutch).
Workers can be terminated in cases of collective redundancy when an employer decides to dismiss 20 or more of its workers within a 3-month period for economic reasons, typically because of a corporate reorganization, facility shutdown or company relocation.
Employers are required to inform the Employment Service and the trade unions in cases of collective redundancy, outlining the reasons for the dismissals and identifying affected employees.
The period of notice may be specified in a contract or a collective labor agreement; otherwise, the required period is from 1 to 4 months, depending on how long the employee has worked for the company.
In cases of mass layoffs, employers must use seniority in determining which workers to terminate.
LRC-NL-100.30
What is the time limit for employer in Netherlands to pay employees upon termination?
Evershine RD:
If you cannot pay the transition payment at once, you can arrange for staggered payment over a period of at most 6 months.
You must pay the legal interest over that part of the amount that has not been paid, stating 1 month after the end of the contract.
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The Engaging Manager from Headquarter
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skype: burlinna
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