Guide to Employees in the Netherlands

Letter not to renew employment contract

If you want to stop the collaboration with one of your employees, a notice period applies. Make sure you do everything correctly and according to Dutch law. Therefore, use this letter not to renew an employment contract.

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Employment contract

If your company hires an employee or you want to employ yourself in your company, you should have an employment contract in place. This agreement contains among other things the terms to end the agreement, employment right such as sick days and vacation days and other special agreements such as compensation for a lease car. Because employees are usually the most valuable asset in any business and conflicts with employees can be very costly and damaging for your business’ reputation, you should arrange and document your agreements with your staff well.

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Contractor agreement

The contractor agreement (also called consultancy or freelance agreement) arranges the terms under which a contractor works for a client. The contractor performs work for the benefit of the client. The contractor is not subordinate to the client and there is no question of an employment contract.
In the freelance agreement you make clear agreements with regard to the assignment. This generally means that the agreement addresses the following:

  • the type of work that the contractor will perform;
  • the duration of the assignment agreement;
  • the hourly wages or a fixed amount for the entire assignment;
  • whether or not general terms and conditions apply;
  • an expense allowance;
  • confidentiality obligation;
  • intellectual property rights.
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