Dutch labour law is changed on January 1, 2020. One of the changes? The Dutch government tries to promote security for employees. From January 1, 2020 it is cheaper to employ an employee for an indefinite period of time (for a fixed amount of hours) instead for a limited period of time and for a variable amount of hours. The difference?
Employment agreement for an indefinite period of time and a fixed amount of hours: 2,94% to be paid over the employee’s gross salary. Other contracts? 7,94%. Except for contracts with employees younger than the age of 21. The difference is an amount of 5%; quite a substantial amount.
In case you would like to apply the low unemployment contribution rate from January 1, 2020 you will need to have a signed employment agreement (for an indefinite period of time) in your administration or another signed document proving that the employee has this kind of employment agreement, ultimately on April 1, 2020.
Need help or advise on Dutch labour law? Please contact our colleague Amanda Brouwers (tag)