Expat employment law in the Netherlands
The Netherlands is home to a large international workforce, particularly in the Randstad, the Amsterdam tech scene, and the international organisations based in The Hague. Foreign nationals working in the Netherlands - commonly referred to as expats - are in principle entitled to the full protection of Dutch employment law once they are employed in the Netherlands. This applies regardless of the nationality of the employer or the employee, and regardless of the currency in which the salary is paid.
Dutch employment law - primarily Book 7 Title 10 of the Dutch Civil Code (Burgerlijk Wetboek) - contains mandatory provisions (dwingend recht) that cannot be contracted out of. These include rules on termination of employment, the transition payment, protection against dismissal during illness, and the statutory notice period. An expat whose employment contract is governed by foreign law may still be able to invoke these Dutch mandatory provisions under the Rome I Regulation.
Work permits and right to work
EU/EEA nationals and Swiss nationals have the right to work in the Netherlands without a work permit. For non-EU nationals, the employer must generally obtain a work permit (tewerkstellingsvergunning, TWV) or a combined permit (gecombineerde vergunning voor verblijf en arbeid, GVVA). Highly skilled migrants may qualify for the highly skilled migrant scheme (kennismigrantenregeling), which provides a faster and more flexible route. Failure by the employer to obtain the required permit is an offence under the Foreign Nationals Employment Act (Wet arbeid vreemdelingen, WAV).
The 30% ruling for expats in the Netherlands
Qualifying expats may benefit from the 30% ruling (30%-regeling), a tax advantage under which up to 30% of the gross salary can be paid tax-free as compensation for extraterritorial costs. The ruling is available to employees recruited from abroad who meet a salary threshold and who possess specific expertise that is scarce on the Dutch labour market. An employment lawyer and a tax adviser working together can ensure that expat employment arrangements are legally and fiscally optimal.
Under the Wet arbeid vreemdelingen (WAV), an employer who engages a non-EU/EEA national without the required work authorisation can be fined up to EUR 11,250 (natural person) or EUR 45,000 (legal person) per violation under Article 19d WAV. Non-EU workers who have worked legally in the Netherlands for at least five years (Turkish nationals: three years) acquire the right to have an annotation placed on their residence permit exempting them from the work permit requirement. Illegally employed workers retain the right to invoke Dutch employment law protection, and Article 23 WAV creates a legal presumption that such a worker has worked at least six months at the usual rate of pay in the sector.