Hiring In The Netherlands – Country Guide

Guide to Recruitment in the Netherlands

Hiring in a new country can be a complex and challenging process, with unique laws, regulations, and cultural differences to consider.

This guide is designed to help you navigate the employment system in the Netherlands, providing an in-depth overview of the job market and recruitment landscape – from contractual nuances, up to financial implications and immigration considerations.

Our resource outlines the components you will need to create a comprehensive recruitment plan for your local hiring needs.

Overview

The Dutch labour market has been performing well in recent years, and that trend is expected to continue in the coming period. Currently, this is reflected in low unemployment, high demand for skilled workers, and a shift towards flexible working arrangements – a demand which is also driven by the rise of the gig economy and remote work.

As a result, many companies are offering part-time, freelance, and more accommodating schedules to attract and retain employees. The unemployment rate in the Netherlands has remained below 4% in recent years, which is considered to be moderate-to-low compared to other EU countries, and there continues to be a shortage of workers in industries such as technology, healthcare, and logistics.

Employment law in the Netherlands is governed by the Dutch Civil Code, which regulates areas such as employment contracts, minimum wage and working hours, leave entitlements, termination of employment, discrimination and harassment, and collective bargaining. Its guiding principles seek to protect the rights of employees and ensure fair treatment in the workplace.

Legal provisions surrounding the end of employment in the Netherlands are designed to ensure a fair and just process for both employees and employers. The length of notice required for termination and the process for challenging a termination are enforced in the Dutch Civil Code.

When it comes to employment agreements, the offering is similar to those prevalent in other EU countries. However, in comparison, the Netherlands has one of the highest rates of temporary work in Europe. Employment contracts fall into several categories, such as temporary/fixed-term employment contract, permanent/indefinite-term employment contract, flexible working hours employment contract, agency worker contracts and independent contractors.

In the Netherlands industries can also be subject to a Collective Labour Agreement (CLA) on top of the employment conditions that are already enshrined in the law. These CLAs typically offer better remuneration or secondary benefits than the law itself prescribes. For example, the CLA for temporary workers helps to harmonise pay and fringe benefits between temporary and permanent workers, which make the use of temporary workers more tailored for employers compared to other EU countries.

In terms of labour costs, the Netherlands has one of the highest in the European Union, ranking fifth among EU member states. This is due to a combination of factors such as high social security contributions, taxes, and mandatory employee benefits, including healthcare and pension plans. The Dutch government also requires employers to provide paid vacation time, sick leave, and maternity and paternity leave.

In the case of foreigners looking for job opportunities, there are several permits and visas available. Working in the Netherlands typically requires a valid visa and work permit for non-European Union (EU) citizens, while EU citizens are exempt from this requirement.

The most common permits are the TWV (single permit), GVVA which combines both work and residence permits, and the Highly Skilled Migrant permit, which is for highly educated professionals and allows for easier switching of jobs and self-employment. Other permits include the Intra-Corporate Transfer permit for employees of multinational companies, the Orientation Year permit for recent graduates to look for work, and the Seasonal Work permit.

As of 2023, the recruitment landscape in the Netherlands is characterised by a tight labour market, with low unemployment rates and high demand for workers in many sectors.

In general, the cost of external recruitment support is relatively volatile, and it revolves around the level of expertise, the scope of services, the complexity of the recruitment process, the position for which candidates are being sought, and the expenses involved. Standard recruitment costs for an agency are usually between 20% and 30% of the recruited candidate’s first-year salary, although some agencies can go as low as 18%.

In conclusion, hiring in the Netherlands presents its unique set of challenges, but it also offers several advantages compared to other EU countries. Talent shortages, strict employment laws and projected stagnation in the temp employment sector are some of the key challenges that companies may face. However, the country’s highly skilled workforce, favourable business climate, and strategic location in Europe continue to make it an attractive location for businesses.

Collaborating with a recruitment agency in the Netherlands can bring significant benefits for employers, such as a faster job application process, cost savings, and a wider reach for job posts. In addition, such collaboration offers access to a wide range of services that can help businesses navigate the local job market and ensure compliance with employment laws and regulations.

As a whole, the Dutch recruitment landscape is healthy, with plenty of opportunities for professionals as well as new and existing companies to find success.

Despite the fact that employers continue to be presented with new challenges as the landscape develops, employment rates are high, higher education is prevalent, and labour costs are relatively affordable. These aspects can substantially facilitate the recruitment of top talent, ultimately making for a very attractive business development opportunity.

Allen Recruitment In The Netherlands

Recruitment in the Netherlands

Job Market Overview

The Netherlands is a very interesting job market with a great variety of talent. In 2022, more than 1.55 million vacancies were created and more than 1.5 million vacancies were filled throughout the year.

Job Benefits: Mandatory & Common Optional Benefits

The Netherlands enjoys strong labour laws which provide employees with a number of required benefits in a typical employment contract. These benefits are:

• Paid holidays (calculated with the formula: hours worked per week * 4)
• Paid sick leave
• In situations where an employee becomes chronically ill, they are entitled to a minimum of 70% of their current salary for up to 2 years
• Parental leave
• Maternity leave: a minimum of 10 weeks after the baby is born at full pay
• Partner leave: 5 working days off at full salary, and up to 5 weeks at 70% of their current salary
• Holiday allowance

Additional benefits are possible in the form of work-from-home allowances, an annual bonus or 13^th pay check, overtime pay, health insurance coverage, pension contributions, and travel reimbursements for traveling to the office.

According to research by PanelWizard for Indeed, the top 10 additional benefits in order of importance for employees were (the percentages indicate how many respondents rated a benefit as “very important”):

• Pension (93%)
• Travel reimbursement (85%)
• Learning & development opportunities (83%)
• 13^th Pay check (79%)
• Internal growth opportunities (78%)
• Extra vacation days (75%)
• Overtime pay & special (evening/weekend) pay (75%)
• Paid sick leave (74%)
• Bonuses (65%)

Remote Work

The Netherlands has been favourable towards fully remote work for some time now. Even before the pandemic, 14% of workers in the country were already working remotely, which was the highest among EU countries.

Before the outbreak of COVID-19 in the Netherlands, 39% of the working population occasionally worked at home. Since then, the share of people working remotely has increased dramatically. By the end of 2020, this increased to 48% (approximately 3.6 million employees) who were working from home at least occasionally, with over 1.6 million employees indicating they primarily worked from home.

As a result of changing conditions and opinions around remote work, the Netherlands has approved a bill that has enshrined the right to work remotely for employees in the law.

Based on the Flexible Working Act, employees who have worked more than six months (26 weeks) for their employer can ask their employer:

• for the adjustment and redistribution of their working hours and,
• for adjustments to the workplace

Regarding the adjustment of working hours, the employer can only reject a request if it has weighty business-related objections. From case law, it is recognised that this is a hard test to meet. For the adjustment of working place, this test does not apply: the employer is only required to consider the request to work remotely.[1]

[1] The Dutch work-from-home (WFH) bill passed voting by the parliament on July 5, 2022. However, the current legal framework is not well equipped to regulate hybrid working and its current rapid expansion. Instead of waiting for legislation that grants employees specific rights, employers are recommended not to wait for the legislator and develop a healthy a2nd sustainable policy approach to hybrid working that is compatible with their business.

Employment Hubs in the Netherlands

The main locations for work and business are the centre of the country, and to a lesser degree, the south. Below follows a breakdown per province, with its biggest hub(s) listed below that:

Source: Dutch Central Bureau for Statistics

Recruitment Landscape

The recruitment landscape in the Netherlands is very diverse. Recruiting agencies form a key component of the recruitment landscape, but companies rely to varying degrees on a hybrid approach between in-house and agency recruitment. The degree to which agencies are involved in different industries provides some insight into which industries utilize agency recruitment and temporary recruitment the most.

Figure 1: “De detacheringsbranche in beeld” by PwC in 2018 (https://www.pwc.nl/nl/actueel-publicaties/assets/pdfs/de-detacheringsbranche-in-beeld.pdf)

According to the same report from PwC, 64% of recruitment agencies operated nationally, while 26% operated locally.[2]

[2] Of the remaining 10% of agencies, which operated internationally, only a quarter of agencies were primarily focused on recruitment in other countries. This indicates a highly competitive market in which agencies have a large amount of local knowledge and finding the right agency for you can be a difficult process.

Dutch Labour Market Overview

The Dutch labour market is quite robust and features a total able working population of 9 663 000 people (CBS, 2022), divided as following:

• 97% of the population is employed
• 3% of the population is unemployed

Gender divide across industries

It is worth noting that while overall the gender gap appears minimal at first, individual industries are are still subject to severe gender disparities.

Average Tenure

According to LinkedIn’s latest data the median tenure for professionals in the Netherlands is 1.6 years. This does tend to vary by industry, and recent insights from HR experts suggest that employees under 25 are switching jobs more quickly than other age groups.

What sectors are the most popular?

The largest industry sectors in the Netherlands, according to research by the Central Bureau for Statistics, are:

Talent map

The majority of talent across all industries at large is centred around the Randstad with over 4.4 million professionals, which is made up of Amsterdam, Rotterdam, the Hague, and Utrecht. This is followed by Brabantine City Row in province Noord Brabant with just under 600 000 professionals, and the Greater Enschede Area in the province Overijssel with just under 400 000 employed professionals.

Furthermore, some of the emerging locations that are expected to show the most potential for employment expansion (i.e. areas where the supply of professionals outweighs the demand) include the Greater Enschede Area, Arnhem-Nijmegen Region, and Greater Groningen Area.

Overview of the current talent market dynamics:

Rank of titles in high demand

LinkedIn data analysis of the most popular skills, measured by hiring demand in parity to numbers of professionals

1y growth – The percentage change in the number of professionals with this skill, compared to the number of professionals one year prior.

Main job boards and channels for sourcing candidates

Listed here are the top 10 job vacancy sites, measured by amount of job postings, per December 31st 2022, in the Netherlands.
1. Glassdoor.nl – 1.727.916
2. Vacant.nl – 1.658.516
3. Jobbird.nl – 1.434.196
4. Monsterboard.nl – 1.082.338
5. Vacatureplaats.nl – 1.056.437
6. Technicus.nl – 874.851
7. Nationalevacaturebank.nl – 839.586
8. Jobsonline.nl – 459.245
9. Stagemarkt.nl – 434.750
10. Dichtbij.nl – 429.363

Contact Our Netherlands Growth Specialist

How do I hire an employee in the Netherlands?

Hiring qualified people in the Netherlands lends itself to a few different options, which we will discuss below. But first it is important to understand the division of people across temporary employment, permanent employment, and self-employment.

The first element then is to determine which employment type you intend to go for. Each employment type has its own benefits:

Permanent Employment

• The security of a permanent contract makes it an attractive form of employment for candidates, and will likely make it easier to attract suitable talent.
• A permanent contract places the most commitment on both employer and employee, which can be undesirable for certain roles or organisations.
• Ideal for employing top talent that you’ll need for the long-term health and growth of your organisation.

Temporary & fixed term employment

• Flexible contracts by this definition include both all types of temporary contracts and permanent contracts which do not have guaranteed working hours. -> Flex employment in NL
• Flexible employment is still subject to significant commitments on both sides, with employer and employee subject to items like probation periods, notice periods, and possibly sick leave depending on the collective agreements and the nature of the contract in question.
• As the name implies, flexible employment is ideal for maintaining a certain level of flexibility in your organisation by reducing the risk you take to shorter term commitments with new employees.
• Link to hiring temps guide:

Day-rate contractors, LTD contractors, or self-employed persons

• Self-employed primarily describes so-called “ZZP”s, which is an abbreviation that describes “self-employed persons without employees” (1 078 000), although this category also includes a smaller number of “ZMP”s, or “self-employed persons with employees” (367 000).
• Self-employed or contractors typically enter into a business-to-business relationship with their clients, and thus it is the relationship which places the fewest obligations on you as the employer.
• Contractors can be expensive but also provide the most flexibility, and can often be a good choice if you need specific and high level expertise for a given project or time period.

Of course, to engage prospective employees or contractors in a business arrangement, you will need to be in a position to do so from a legal standpoint. There are a number of options available, which include:

• Engaging contractors can be done without the need for local entities
• Set up and administrate a local entity in the Netherlands
• Engage a local agency that can employ people on your behalf
• Engage a payroll company like Deel or Boundless so you can act as the Employer of Record

Key Elements in a Dutch Contract

The following elements make up the basic structure of an employment contract in the Netherlands for either temporary or permanent employment.
• The residence and workplace of the employee and the location of the business
• The position (or type of work) of the employee
• The starting date and number of hours per week or month the employee is to work
• The salary and arrangements for its payment
• Arrangements about the probationary period (if any)
• Agreements on vacation allowance, sick leave and vacations
• Agreements on the notice period
• Any agreements on a non-competition clause (if applicable)
• Any agreements on a pension plan (if applicable)
• The collective bargaining agreement (CLA) (if applicable)
• Agreements on confidentiality and data security
• Agreements on intellectual property (if applicable)
• Agreements on the end date of the contract (temporary contracts only)

Hiring permanent staff in the Netherlands

Permanent contracts are called “Contract voor Onbepaalde Tijd” in Dutch and are characterized by the fact that they do not feature a date on which the employment is terminated by default. In principle there are no differences in the mandatory benefits (paid holidays, paid sick leave, parental leave, holiday allowance) that employers must provide to permanent or temporary staff in the Netherlands, although their amounts may differ due to varying amounts of hours worked.

A key feature of a permanent or indefinite contract is that to terminate an employee outside of their probation period, an employer must always gain the permission of the UWV or a district judge before proceeding, and be able to provide a valid business reason for doing so.

Hiring Temporary staff in the Netherlands

Temporary contracts always feature an end date by which the contract will automatically terminate. While employers are still subject to the need to seek the permission or approval of the UWV or a district judge to terminate an employee mid-contract, they are afforded greater flexibility in their staffing in the case of temporary contracts because no such permission is required when a contract expires.

It is important to note that employers are required to inform employees in a timely fashion (1 month beforehand) whether their contract will be renewed or terminated. Additionally, it is not possible to employ the same employee indefinitely via repeated temporary contracts. Once an employee on a temporary contract meets the following criteria, their contract must be terminated or replaced with a permanent contract:

• The employee has received 3 consecutive temporary contracts from the same employer; the 4^th must be a permanent contract.
• The employee has been working for the same employer on temporary contracts for a time period that exceeds 3 years, even if they have not yet received 3 consecutive temporary contracts.
• These rules are known as the ‘ketenregeling’ (chain rule) in Dutch.
• The exception to these rules is that if an employee is employed on temporary contracts, but there is at least a 6 month waiting period between contracts, then the timer starts over.

LTD contracts in the Netherlands

The primary characteristic of employing LTD contractors, day rate contractors, or self-employed persons is that the company is not liable for any of the usual costs associated with employing a person. Instead the company directly invoices the contractor and it is the contractor’s responsibility to pay the appropriate taxes, social security contributions, and otherwise.

The main topic to be mindful of is to prevent what is known in Dutch as “Schijnzelfstandigheid”, or bogus self-employment. If schijnzelfstandigheid is established, it means that the employer becomes retroactively liable for any missed social security payments and other taxes. A fine can also be applied at the discretion of the relevant authority, the Dutch revenue service.

Schijnzelfstandigheid can be recognized by the following criteria:

• Employer’s authority: if a company decides unilaterally how, when, and where the contractor performs their work, they take on the authority of being an employer.
• Who executes the work: contractors are not required to perform the work directly themselves, and can outsource (with approval of the choice by the company).
• Payment: a contractor is required to be able to set their own rates. If a company decides the rate of payment, it strongly suggests an employer-employee relationship.

Visas–Permits

Employees in the Netherlands do not require any special visas or permits to work in the Netherlands if they have the Dutch nationality or the citizenship of another country in the European Economic Area (EEA) or Switzerland.

If a company in the Netherlands wishes to recruit from outside of the EEA or Switzerland, permits are required. All work permits are checked for their validity by the Employment Insurance Agency, referred to as UWV.

It is important to note that a work permit can only be issued if the company can prove an investment of time and effort into filling the position from within the EEA or Switzerland first, but has failed to find success.

Two work permits are possible, depending on which circumstances apply:

1. A “tewerkstellingsvergunning” or TWV applies in the case that:
   1. The employee will work in the Netherlands for fewer than 3 months or,
   2. The employee already lives in the Netherlands and has a residence permit or,
   3. The employee will work for more than 3 months in the Netherlands, but they will not live in the Netherlands.
   4. This permit is granted directly by the UWV.
2. A “Gecombineerde Vergunning voor Werk en Arbeid” or GVVA is a combined residence and work permit, and applies in the case that:
   1. The employee will work in the Netherlands for more than 3 months AND if:
      1. The employee has no residence permit or,
      2. The employee is coming to live in the Netherlands.
   2. This permit is granted by the Immigration & Naturalization Service or IND, though the work permit is still verified by the UWV.

Additionally the EU Blue card is the European answer to the US green card system, and provides a work and residency permit for individuals who have a high level of professional capacity and in-demand skills. The EU blue card allows its holder to travel freely across EU states for up to 90 days.

Requirements for an EU Blue Card

• You must have a valid passport.
• You must have a medical certificate (or fall under an exemption).
• You must have a clean criminal record certificate.
• You must have a legally binding job offer or a signed contract that is valid for at least 12 months, and which requires a diploma from an institute of higher learning.
• You have a diploma from an institute of higher learning, which required at least 3 years of study, and your diploma is required for the sector or job that you will be performing in.
• Your position’s salary is at least €5867,00 per month, before taxes, and excluding optional overtime pay and excluding holiday pay.
• If you work in a protected sector, for example as a doctor or a lawyer, you must be able to prove that you are legally allowed to practice this profession in the Netherlands.
• Your employer must not have received a fine in the past 5 years, for one of the following two reasons:
  • Violating article 2 of the Wav, or foreign workers’ law or,
  • Failure to pay the required social security and taxes for employees.

Learn More About Allen Recruitment In The Netherlands

Employment tax & costs in the Netherlands

Employment taxes & social security payments in the Netherlands are split up between the employer and employee. The employer’s contribution is as follows:

• 5.49% to 7.05% – WAO/WIA: Invalidity Insurance Fund, amount depends on the business size.
• 0.34% to 5.34% – WW: Unemployment Fund.
• 6.75% – ZVW – Healthcare Insurance Act.
• 0.21% – 3.36% – Whk: Work Resumption Fund.
• 0.17% – 2.72% – Sickness Benefits Act.
• 0.50% – Childcare Premium.

The total contribution paid by an employer over an employee’s salary ranges from 13.46% to 25.72%.

The employee’s contributions are as follows:

• 17.90% – Old Age Pension (AOW)
• 0.10% – Orphans and widow/widower pension (ANW)
• 9.65% – Long Term Care (WLZ)
• Up to 2.70% – General Unemployment Fund

The total contributions paid by an employee over their salary ranges from 27.65% to 30.35%.

Employment taxes are bracketed as follows:

• 36.93% for salaries up to €73.031 and,
• 49.50% for salaries over €73.031

How much does it cost to employ someone in the Netherlands?

Based on the average salary in the Netherlands of €40.000, we have provided an example of what it would cost – on average – to employ someone in the Netherlands:

 * Not required for permanent contract

Example of an Employment cost comparison per country

Dutch Employment Laws

Probation in the Netherlands

Employing someone temporarily or permanently will cause them to become subject to a probation period, as long as the intended contract time exceeds 6 months. However, contracts for 6 months or less are not subject to probation periods, and can in fact never include a valid probation period for either employer or employee to observe.

The key aspect of a probation period in the Netherlands is that it allows for dismissal without grounds, even if the employee falls ill. Similarly, an employee is free to terminate their contract immediately during their probation period. Other prohibitions on terminating a contract continue to apply.

A probation or trial period may never exceed 2 months in length, and the same period must always apply to both employee and employer.

• In the case of temporary employment of more than 6 months but less than 2 years, or in the case of temporary employment without an end date, the maximum allowed probation period is 1 month.
• In the case of permanent employment or a temporary employment contract for more than 2 years at once, the maximum allowed probation period is 2 months.

It is important to note that probation periods are not mandatory under Dutch law by default, and are only valid in writing. However, if a job is subject to a Collective Labour Agreement (CLA), then the CLA may stipulate a probation period which cannot be ignored – even if it is not recorded in an individual’s contract.

Termination of temporary or permanent contracts

The laws regarding the end of employment in the Netherlands are governed by the Dutch Civil Code (Burgerlijk Wetboek) and the Collective Labor Agreement (CAO), which are designed to ensure that the rights of both employees and employers are protected during the termination of process.

In the Netherlands, there are two main types of termination of employment:

• Resignation – when an employee voluntarily decides to leave their job.
• Termination by the employer – for reasons including redundancy, breach of contract, and performance issues.

If an employee resigns, they must provide their employer with notice in writing. The notice period is determined by the terms of the employment contract and can range from one week to several months (read below).

Regardless of the reason for termination, both the employee and the employer have the right to challenge the decision if they believe that it is unfair or unjustified. If an employee believes that their dismissal is unfair, they can take the matter to the Dutch Labor Court (Arbeidsrechtbank).

It’s important to note the level of protection that permanent employees enjoy in the Netherlands might be one of the reasons why temporary contracts are popular.

Termination of temporary workers from an agency

The employer can terminate contract without any reason, but is under an obligation to give temporary workers the following notice:
– Up to 26 weeks of employment – 1 day notice is required
– after 26 weeks of employment – 10 days’ notice (or payment in lieu) is required

Notice Period in the Netherlands

A collective labour agreement can include stipulations about the notice period that applies for a specific type of job or sector. However, in the absence of CLA agreement, the law states that:

• The longer an employee is employed, the longer their notice period must be.
• Fewer than 5 years of employment: 1 month notice period.
• 5 to 10 years of employment: 2 month notice period.
• 10 to 15 years of employment: 3 month notice period.
• 15 years or more of employment: 4 month notice period.

These periods can be deviated from by recording deviations in the employee’s contract, but only if the following stipulations are met:

• The employee’s maximum notice period may not be longer than 6 months.
• If you deviate from the standard notice period, the employer’s notice period is required to be twice as long as the employee’s. For example, if the employee must give 6 month notice, then the employer must provide 12 month notice.

Maternity & Paternity Leave in the Netherlands

By default, employees in the Netherlands are entitled to a minimum of 16 weeks of maternity leave:

• Up to 6 weeks, and a minimum of 4 weeks, must be taken prior to the birth of the baby
• At least 10 weeks of maternity leave must be available after the baby was born

In the case of changing or challenging circumstances such as a delayed birth, multiple births, or difficult circumstances, maternity leave must be extended to accommodate the mother. Companies are able to apply for a maternity benefit with the Employee Insurance Agency (UWV).

If an employee’s partner gives birth, the employee has a right to:

• At least 1 week parental leave in the first 4 weeks following the birth
• Up to 5 weeks unpaid leave in the first 6 months after the birth

Sick Leave in the Netherlands

During an employee’s illness, the employer must pay at least 70% of the employee’s most recent gross base salary, for up to 2 years. If that payment amounts to less than minimum wage, the employer is obligated to supplement it to at least match minimum wage during the employee’s first year of illness. This obligation is removed if the employee is sick longer than 1 year.

Employers are expected to consult with employees about returning to work due to the reintegration obligation. Employees are required to cooperate, and failure to cooperate can justify the suspension of salary payments during periods of illness, and even be cause for dismissal.

Redundancy payment

Employers must compensate employees when terminating their permanent employment contracts or any temporary contract that has lasted for 24 months or more. The compensation is:

• During the first ten years of employment, 1/6th of the monthly salary for every half-year of employment

Standard recruitment fees (retention)

Standard recruitment fees in the Netherlands average between 20-30% and are calculated over the total gross salary, including holiday pay.

Challenges when recruiting in the Dutch market

• The Netherlands features complex rules and provisions around the Collective Bargaining Agreements (CBAs/CLAs). CBAs define many regulations regarding compensation and working conditions in the Netherlands and are not just between unions and individual companies, but also apply to certain sectors in some geographical areas. Recruitment Outsourcing is a great way to work through the challenges and hurdles of hiring employees in the Netherlands.
• The Netherlands features large talent shortages in many sectors, including a shortage of skilled workers for IT and digital development roles which keep the country’s businesses competitive.
• Candidates expect long-term employment but can often be met with temporary contracts, especially when first starting their career. This can make it difficult for certain businesses to maintain their flexibility while also attracting the talent they need to grow, as candidates seek security while economic uncertainty increases.

• Many employees got used to fully remote work and are reluctant to come back to the offices.
• Many recruitment agencies over-promise but don’t deliver.
• Generation Z initiated big changes in the market: candidates have a different approach to the recruitment process and employment in general. They expect transparency when it comes to salary info, type of employment, and details regarding the potential manager and the team. Lack of feedback or updates in the recruitment process makes them reluctant to proceed with it. More candidates choose companies with a culture that is compatible with their values.

Employer of Record vs. Recruitment agencies: how do they compare?

An Employer of Record (EOR) is an organization that acts as an employer for legal and tax purposes. The EOR is legally responsible for paying international employees, as well as handling employee taxes, insurance, and benefits. The business where the employee works retains control over business operations.

A recruitment agency can also provide a number of similar services and is usually responsible for hiring directly for the jobs and employees themselves, as well as managing contracts between employer and employee.

Allen Recruitment can support any type of contract (permanent, temporary or contract). We can offer a number of high touch services that suit employers and employee’s needs. In the Netherlands, we deliver the full service in house with no hand offs to local suppliers. We have local on the ground staff with both English & Dutch language support. Client and employee contracts are issued both in English & Dutch.

Our legal entity in the Netherlands ensures local compliance with registration procedures, employment contracts, payroll, HR regulations and tax law.  Our team is equipped to source/headhunt and manage employees across the Netherlands as well as hire and employ pre-identified candidates on your behalf. Our temporary employees are fully insured by us for the work they do for you.

We pay temporary workers on time, irrespective if you have paid us or not. Our billing solution is simple and convenient – we can bill clients in their preferred location and currency. We can provide a full breakdown of fees with no hidden charges and at a lower cost than employer of record services.

Our onboarding team smooths the local onboarding process and can help with additional services around relocation and governmental documentation. Temporary workers can use our offices if they need somewhere to work. We have local technical support to deliver the tech kit they need to get started.

We are experienced in sourcing and employing temporary staff for some of the biggest multinational companies in the world. We pride ourselves in proving the best experience for our client’s and temps, check out our reviews on Glassdoor to see for yourself!

Choosing Allen Recruitment

We think differently about recruitment and possess technological advantages that enable our recruiters to find better candidates faster. How? Our technology-led solution is built on leading machine learning search and automated communication/scheduling software.

Our solution is described as the future of recruitment and allows us to find and engage with the potential candidates that are currently considering changing positions.

Not only do we target local talent but also suitable candidates across many countries that may be interested in your role, company, and location – our candidate reach is truly global.

Our software also allows us to follow up with extensive pools of passive candidates who may be interested in your role or company but are currently sitting on the fence.

Trusted by many of the leading technology and finance companies across the globe since 1998, supporting their recruitment programs across multiple countries from our offices in Ireland, the UK, Poland, the Netherlands, Spain, France, Sweden and Belgium.

Sourcing in permanent, temporary and contract jobs with multinationals, early stage and local indigenous companies, providing an unrivalled and established recruitment service for our candidates and clients alike.

We specialize in a variety of areas, with experienced insights into areas such as Desktop/Network Admin, Software Development, Sales/Marketing, Business Support, Finance, Customer Service and HR/Recruiter roles and much more.

Are you interested in learning more about employing fantastic talent in the Netherlands, but you’re not sure where to start? Or perhaps you simply need a little help to get on your way? Then please don’t hesitate to reach out to us at [email protected].

Allen Recruitment In The Netherlands

Employment cost comparison per country:

The data below is based on the role of Data Analyst with medium level experience (between 3 to 8 years). Employment cost calculation does not include potential costs, which might occur during and after termination of the employment such as: sick leave, severance pay, or similar.

The employment cost comparison is subject to change.

* Total Cost in EUR = total employment cost for Employer (including taxes)

Local Terminology Reference Guide: