Recruitment can be a tricky business, especially when a company is venturing to unfamiliar countries and exploring new markets. This is where we come in to oversee the process for you - Bradford Jacobs’ expertise and over 20 years of experience in international recruitment services is indispensable for expansion into the Netherlands.
Hiring the right talent in the Netherlands to expand your company can result in a thriving business with numerous opportunities. However, the recruitment process can be complicated when you have no physical presence in Holland yet. Our PEO and EOR service can be the solution for your company.
Are you curious about the recruitment process in the Netherlands? In this guide, we will share the ground rules of hiring and recruiting talent in the Netherlands. Our comprehensive knowledge of all Dutch employment sectors and understanding of the culture and customs guarantees an untroubled transition.
The Recruitment Process in the Netherlands
Recruitment is the first stage of making your company operational in the Netherlands. It is vital to know where to locate the best talent to be a perfect fit for your company’s plans.
Employers hiring foreign employees must meet various legal requirements. The employee must possess a residence permit and the employer must obtain an employment permit. Employees with Dutch nationality and citizens from the European Union (EU), European Economic Area (EEA) and Switzerland are exempt. Unless recruiting into a sector with skill shortages, employers must try to fill positions first from the Netherlands or a member nation of the EU or the EAA.
International companies expanding into the Netherlands need not operate through a local entity to recruit employees but will still have a lot of questions, and the answers are not easy to find. Once the right employees are located, employers must follow strict registration and payroll procedures for their new staff. These include:
- Registering with the tax authorities through the Dutch Tax and Customs Administration (Belastingdienst).
- Registering with the Social Security Bank (SVB) which coordinates the social insurance systems – national insurance for individuals legally living in the Netherlands and employee insurance for those working in the country.
- Registering with the Employee Insurance Agency (UWV), which operates under the Ministry of Social Affairs and Employment (SZW) and handles benefits covering such as unemployment and sickness.
- Obtaining the Citizen Service Number (BSN) for all employees so they can interact and liaise with national, regional, and municipal authorities.
The recruitment process is time-consuming and requires dedication – which is a difficult task when faced with a number of other complicated issues involved in international expansion. Partner with Bradford Jacobs as your Employer of Record (EOR). We will provide all the answers, and can convert your expansion blueprint for the Netherlands into an action plan with a few simple steps, including:
- Bradford Jacobs locates the ideal employees for your company, then steps in as EOR to ensure they comply with Netherlands’ employment contracts law, payroll, HR, visa requirements and permits (if required).
- We manage all work-related registration formalities and on-going employment issues while you have daily control of your employees.
- The employees complete their time sheets, and any expenses claims, and we invoice you, the client. Once paid, we deduct all contributions to the relevant Dutch authorities and transfer the balance into the employees’ accounts.
Legal Checks you can make on Netherlands Employees
Scope: During the pre-employment phase, only personal data specifically relevant to the position applied for can be screened. Extra personal data about the candidates may also be obtained, but only if there are exceptional requirements for the vacancy that make it necessary.
Background checks should not contravene an individual’s rights under European Union’s General Data Protection Regulation (GDPR), as fines and other sanctions can be imposed on the employer.
Criminal Record Checks: In specific roles, such as judges, lawyers and advocates, the applicant must provide evidence they have no criminal record.
Discrimination: Screening should be within the parameters of the Equal Treatment Act, which protects Dutch employees from discrimination on the grounds of race or nationality, religious beliefs, political affiliations or memberships, gender, and sexual orientation, civil or marital status.
Required checks include verifying candidates have necessary work permit and/or residence permits, and permitted checks include employment references, but this can only be done with the candidate’s permission.
Basic Facts on Hiring in the Netherlands
- At interview the employer may ask questions only relevant to the nature and working conditions of the role and the applicant’s ability to carry them out.
- Applicants can refuse to answer questions that impinge on their privacy or anti-discrimination rights.
- Employers and employees must comply with all minimum entitlements and benefits as set down in law or by Collective Labor Agreements (CAOs).
- Contracts can be either verbal or in writing, but in every case the employee must be informed of certain basic legal requirements in a written agreement. There is no legal requirement to deposit contracts with third parties.
- Employees must be registered with the Dutch Tax and Customs Administration (Belastingdienst), Social Security Bank (SVB) and the Employee Insurance Agency (UWV), as well as obtain their citizen service number (BSN).
- Minimum wages paid to employees over the age of 21 in full-time employment increased from €1,684 to €1,701 (US$1,997) from July 1, 2021. The new weekly rate is €392.55 (US$460) and €78.51 (US$92) per day.
- The Working Hours Act and the Working Hours Decree regulate working hours between 36 and 40 hours a working week, or seven to eight hours per day scheduled between 6am and 6pm, five days a week. The maximum number of hours is 60 per week and a maximum of 12 hours per shift.
- Sick pay applies for the first two years of incapacity to work, paid either by the employer or via the Employee Insurance Agency (UWV). Sick pay is a minimum 70% of salary, including overtime payments and other personal benefits.
- Full-time employees receive at least four weeks paid holiday annually. Holiday allowance is 8% of total gross salary, paid in May or over 12 months at the employer’s discretion.
- Maternity leave is four to six weeks pre-natal and 10 weeks after the birth. Employers apply to the Employee Insurance Agency (UWV) for the maternity allowance for their employee, who receives their 100% daily salary capped at €223.41 (US$261).
Working with a Recruitment Agency in the Netherlands
The high level of English fluency in the commercial world makes the Netherlands a prime target for expats heading for the multi-cultural environment and mix of multi-nationals, as well as Dutch companies. Many recruitment agencies specialize in roles for foreign workers.
Leading sectors for recruitment are the energy industry, aerospace, IT and communication technology, banking and finance, life sciences and health, hi-tech systems, chemicals, and creative enterprises.
The Netherlands is also a member of the European Employment Service (EURES) network with other European Union nations plus Norway and Iceland. The member nations exchange information on job vacancies, living and working conditions.
Bradford Jacobs have the inside knowledge for recruiting from the Netherlands’ workforce. Whichever of the leading sectors you are expanding into we are perfectly placed to be your ‘recruitment agency’ in the Netherlands.
What are the Benefits of Hiring Outsourcing for the Netherlands?
The big bonus from outsourcing recruitment for the Netherlands is in streamlining your international expansion by opening potential new markets efficiently and cost-effectively. This frees your company to focus on putting this exciting new venture into action.
Advantages for the parent company include:
- A wide-ranging talent search with reduced recruitment costs
- Ensures compliance with all regulations, avoiding the risk of fines or sanctions
- Control over capital expenditure, as outsourcing removes the initial need to establish premises for a subsidiary
- Reduced risks, with an ‘easy in, easy out’ operation while exploring fresh markets further into Europe and beyond
- Quickly start new projects
- Focus on core business
- Improve flexibility
- Scale the global workforce to fit the pace of expansion
Do not leap into the Unknown!
At Bradford Jacobs, our Employer of Record (EOR) services take care of employee recruitment, onboarding, payroll, compliance and providing ongoing support. We choose the best-qualified talent to fill the roles you need. Our expansion know-how guarantees you comply with all Netherlands’ payroll regulations, including salaries, tax, and social insurance by the time your new employees are sitting at their desks.
We ensure you are ready for every eventuality. To get started on your recruitment expansion in the Netherlands, contact us today.