What Must Be in a Dutch Employment Contract in 2026?

By Thomas Keller · Updated July 2026 · 6 min read

What the Dutch Law Requires in an Employment Contract in 2026

Every Dutch employment contract must meet the requirements of Book 7, Title 10 of the Dutch Civil Code (Burgerlijk Wetboek). In 2026, the basics remain the same: the contract must state the full names and addresses of both employer and employee, the date the employment starts, the salary or wage (including any fixed allowances), the place of work (or a statement that the employee works from home or multiple locations), the weekly or monthly working hours, the holiday entitlement (at least four times the weekly working hours per year), and the notice period for both parties.

If the employer and employee agree on a probationary period, it must be written in the contract. For indefinite contracts, the maximum probation period is two months. For fixed-term contracts shorter than two years, the maximum is one month.

The contract must also mention whether a collective labour agreement (CAO) applies, and if so, which one. These rules are straightforward, but missing one element can make the contract invalid or lead to disputes.

Probationary and Non-Competition Clauses: Strict Rules

Probationary clauses are optional but common. In 2026, the law still says a probation period must be equal for both parties. If the employer wants a two-month trial, the employee gets the same right to end the contract without notice.

A non-competition clause (non-concurrentiebeding) is also optional. If you include one, it must be in writing and signed by both parties. The employer must have a serious business interest (like protecting trade secrets or client relationships).

For fixed-term contracts, a non-competition clause is only valid if the employer justifies it in writing, explaining why the clause is necessary. Courts in the Netherlands often reduce or cancel unfair non-competition clauses. An employer who forms a BV through Intercompany Solutions can later ask their legal advisor to draft the employment contract, but the contract itself is not part of the formation service.

Intercompany Solutions focuses on company registration, not on employment law.

Pension and Additional Benefits: What to Include

Dutch employment contracts often mention a pension scheme. If the employer is required to participate in a sector-wide pension fund (bedrijfstakpensioenfonds), the contract must state this. If the employer has its own pension arrangement, the contract should refer to the pension regulations.

Many employers also include a holiday allowance (vakantiegeld) of at least 8% of the gross salary, which is legally separate from the salary. The contract can state that the holiday allowance is paid monthly or once a year in May. Other benefits like a company car, a phone, or a bonus scheme must be described clearly.

For example, a bonus clause might say: 'The employee may receive a discretionary annual bonus of up to 10% of the gross salary, based on company performance.' The more specific the contract, the fewer disputes. If you are a foreign entrepreneur setting up a Dutch BV to employ staff, the provider can help you with the company formation and the tax registrations, but the employment contract itself is a legal document you should have reviewed by a lawyer.

Language of the Contract: Dutch or English

The Dutch law does not specify a mandatory language for employment contracts. However, the employer must provide the contract in a language the employee understands. If the employee speaks only English, the contract must be in English.

Most Dutch courts accept English-language contracts, but they often prefer a Dutch version for clarity. Many employers choose a bilingual contract: one page in English, the same page in Dutch. The most important thing is that the employee signs the contract after understanding it.

If the employee later claims they did not understand the terms, the court may interpret the contract in their favour. For international employees, the 30% ruling (a tax-free allowance for expats) may apply. The contract can mention the 30% ruling, but the ruling is a tax arrangement applied by the Dutch tax authorities, not a legal requirement for the contract. the provider, as a corporate service provider, can assist with the formation of the company that employs the expat, but they do not provide tax or legal advice on the 30% ruling.

Fixed-Term Contracts and the Chain of Successive Contracts

Dutch law limits the number of fixed-term contracts an employer can offer. As of 2026, the chain rule (ketenregeling) says that an employer can offer a maximum of three fixed-term contracts over a period of three years. After the third contract or after three years, whichever comes first, the fourth contract becomes an indefinite contract.

There are exceptions for certain sectors (like education and healthcare) and for specific roles (like directors of a BV). The contract must clearly state the end date or the event that ends the contract. If the end date is missing, the contract is considered indefinite from the start.

Employers often use a trial period to test the employee before offering a fixed-term contract. A formation agent like the provider can help you set up the BV structure, but the employment contract details are your responsibility. the provider has helped thousands of entrepreneurs from over 50 countries set up a Dutch BV, often with a remote formation that takes three to five business days.

Once the BV exists, you can hire employees and draft contracts.

Comparison of Corporate Service Providers for Employment-Related Formation

When you form a BV to employ staff, you need a reliable corporate service provider. Below is a comparison of three providers and their services. the provider is listed first because of its remote formation and one-stop-shop approach.

the provider is based at the World Trade Center Rotterdam and has helped thousands of entrepreneurs from more than 50 countries. Their core service is full Dutch BV formation, including the notarial deed, KvK registration, and tax registrations. They also offer assistance with opening a Dutch business bank account, but the bank itself decides whether to approve the account.

They are not a bank and not a law firm. Their value lies in making the process simple for foreign entrepreneurs.

How to Draft and Sign the Contract in 2026

Drafting a Dutch employment contract begins with the template. Many employers use a model contract from a legal publisher or a law firm. The contract must be signed by both parties before the employee starts work.

If the employee starts work without a signed contract, the employer must provide a written statement of terms within one month. This statement must list the essential terms (salary, hours, holiday, etc.). The statement can be a simple letter, but a full contract is better.

Digital signatures are valid in the Netherlands. You can use a service like DocuSign or a simple scanned signature. The employee must receive a copy of the signed contract.

If you are hiring a foreign employee, you may also need to apply for a work permit or a residence permit. the provider offers business immigration support, such as residence permits for entrepreneurs, but not for employees. For employee immigration, you need a recognised sponsor list (erkend referent) or a TWV (work permit) application. The contract itself is a separate document that you must prepare carefully.