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Employment contract in the Netherlands: Template, Key Clauses and Local Law (2026)

Adira EditorialLegal AI desk7 min read

What a Dutch employment contract has to get right An employment contract in the Netherlands (arbeidsovereenkomst) is governed by Book 7, Title 10 of the Dutch Civil Code (Burgerlijk Wetboek) and, for most workers, by a sector or company collective labour agreement (CAO). Dutch employment law is strongly protective of employees, and many of its rules are mandatory, which means the contract cannot sign them away even if both sides agree. A generic template written for another country will usually be wrong on probation, notice, non-compete and the end-of-contract payment, so the local rules below matter more than the wording you start from. This article is general guidance, not legal advice. A collective agreement or an individual situation can change the outcome, so have a Dutch employment lawyer review a contract before you rely on it. ## What local law requires in 2026 - Probation (proeftijd). It must be agreed in writing before work starts and must be the same length for both sides. No probation is allowed in a contract of six months or less. The maximum is one month for a fixed-term contract of more than six months but under two years, and two months for a permanent contract or a fixed-term contract of two years or more. A probation clause that goes over the maximum is void in full, not reduced to the legal limit.

  • Fixed-term chain rule (ketenregeling). An employer may give at most three successive fixed-term contracts over a maximum of 36 months. Go past either limit and the contract becomes permanent by operation of law. A reform (the Wet meer zekerheid flexwerkers) was adopted in 2026, with most changes expected from 1 January 2028, so the three-contracts and 36-months rule still applies in 2026.
  • Notice (opzegtermijn). Employee notice is usually one month. Employer notice runs from one month for under five years of service up to four months for fifteen years or more, subject to the CAO.
  • Dismissal needs a route. An employer cannot simply end a permanent contract with notice. It needs a permit from the UWV (for business-economic or long-term illness grounds) or an order from the subdistrict court (kantonrechter), unless the employee agrees in a settlement (vaststellingsovereenkomst) or the dismissal is during probation or a summary dismissal for urgent cause.
  • Transition payment (transitievergoeding). On dismissal the employee is generally owed one third of a gross monthly salary for each year of service, counting from the first working day. For 2026 the statutory cap is 102,000 euro, or one year's salary if that is higher.
  • Minimum wage and holiday. A statutory minimum wage applies as an hourly rate set by the government and updated each January and July, so check the current figure. Employees are entitled to at least four times their weekly hours as paid annual leave (20 days for a full-time week) plus 8 percent holiday allowance (vakantiegeld). ## Dutch employment contract template Copy the block below and fill the bracketed fields. ``` EMPLOYMENT CONTRACT (ARBEIDSOVEREENKOMST) This contract is made on [DATE] BETWEEN: [EMPLOYER NAME], [address], [KvK number] ("Employer") AND [EMPLOYEE NAME], [address], [date of birth] ("Employee") 1. ROLE AND START The Employee is engaged as [job title], starting on [DATE], based at [location / hybrid]. Duties are set out in [job description]. 2. TYPE AND TERM This is a [permanent (onbepaalde tijd) / fixed-term (bepaalde tijd) to [END DATE]] contract. [For fixed term: this is contract number [N] in any chain and the chain does not exceed three contracts or 36 months.] 3. PROBATION A probation period of [one / two] month(s) applies. [Omit entirely if the contract is six months or less.] It is the same for both parties. 4. WORKING HOURS The working week is [N] hours. [Overtime treatment / on-call terms.] 5. SALARY Gross salary is [AMOUNT] per month, paid by the [date], plus 8% holiday allowance paid in [month]. [Pension, 13th month, bonus if any.] 6. HOLIDAY The Employee has [N] days of paid leave per year (at least four times the weekly hours), plus public holidays as per the CAO. 7. COLLECTIVE AGREEMENT The [name] CAO [applies / does not apply] and prevails where more favourable to the Employee. 8. CONFIDENTIALITY The Employee keeps the Employer's confidential information and trade secrets private during and after employment. 9. NON-COMPETE / NON-SOLICIT [If used:] For [N] months after the contract ends, within [area], the Employee will not [compete / solicit clients or staff]. [For a fixed-term contract, the compelling business interest justifying this clause is: [state it here], without which the clause is void.] 10. INTELLECTUAL PROPERTY Rights in work created in the role belong to the Employer to the extent the law allows. 11. NOTICE Employee notice is one month. Employer notice is the statutory period for the Employee's length of service, subject to the CAO and a lawful ground. 12. GOVERNING LAW Dutch law applies. Disputes go to the competent Dutch court. Signed: Employer ____________ Employee ____________ Name / date Name / date
- **Probation (clause 3).** Get the length and the written form right, because an invalid clause gives you no probation at all. Remember it is banned in a contract of six months or less.
- **Non-compete (clause 9).** Under Article 7:653 of the Civil Code the clause must be in writing and signed by an adult employee. In a fixed-term contract the employer must set out, in the clause itself, the compelling business interest (zwaarwegend bedrijfsbelang) that justifies it. A generic wish to protect the market is not enough, and courts regularly narrow or strike out clauses that are too wide. A bill to modernise the non-compete (with a likely time cap and mandatory compensation) is in the legislative pipeline, so treat long or unpaid restrictions as fragile.
- **Holiday allowance (clause 5).** The 8 percent vakantiegeld is on top of salary and is a legal entitlement, not a discretionary bonus. ## Red flags to avoid - A probation clause in a contract of six months or less, or one longer than the legal maximum. Both are void.
- Losing count of the fixed-term chain and accidentally creating a permanent contract.
- A non-compete in a fixed-term contract with no stated business interest, which makes it unenforceable.
- Assuming you can dismiss with notice alone, without a UWV permit, a court order or a settlement.
- Forgetting the transition payment, which is owed from day one, including during probation.
- Copying a foreign template that ignores the CAO, which can override the contract where it is more favourable to the employee. ## Where a contract workspace helps A template gives you a sound Dutch contract. The harder work is everything that follows: counting each person's place in the fixed-term chain so a renewal does not quietly become permanent, checking that every probation and non-compete clause matches the current statute, tracking notice dates and transition-payment exposure, and keeping each signed version and its CAO reference in one place. Drafting a Dutch employment contract, checking a non-compete against Article 7:653, and watching the chain-rule clock can sit in one AI workspace tuned to how your company hires. [Adira](https://adiralaw.com) is built around that idea: it drafts from your template, models the contract as linked clauses so it can flag a probation clause that is too long or a non-compete with no stated business interest, lets you edit in plain language, and keeps renewal and notice dates on one timeline. Adira is India-first today, and deeper Netherlands-specific coverage is on its roadmap rather than a settled claim, so treat it as a drafting and review aid and keep a Dutch adviser for the local-law call. The template here is enough to put a fair contract in place on its own. Last verified October 2026.

Frequently asked questions

How long can a probation period be in the Netherlands?
It depends on the contract length. There is no probation at all in a contract of six months or less. For a fixed-term contract of more than six months but under two years the maximum is one month. For a permanent contract, or a fixed-term contract of two years or more, the maximum is two months. The probation must be in writing, agreed before the work starts, and the same length for both sides. A clause that exceeds the maximum is void in full, so you end up with no probation rather than a shortened one.
Can I dismiss an employee in the Netherlands with notice alone?
Usually no. For a permanent contract an employer generally needs either a permit from the UWV, for business-economic or long-term illness grounds, or an order from the subdistrict court for other grounds, unless the employee agrees to leave under a settlement agreement. The main exceptions are dismissal during a valid probation period and summary dismissal for an urgent cause. This is one of the biggest differences from countries with at-will or notice-only dismissal.
Is a non-compete clause enforceable in a Dutch employment contract?
It can be, but the rules are strict. Under Article 7:653 of the Civil Code the clause must be in writing and signed by an adult employee. In a fixed-term contract the employer must state the compelling business interest that justifies the clause within the clause itself, or it is void. Courts can narrow or annul clauses that are too broad in time, area or scope, and can award compensation for the restriction. A reform expected to cap the duration and require payment is in the pipeline, so long or unpaid clauses are risky.
What is the transition payment and when is it owed?
The transition payment (transitievergoeding) is a statutory severance payment owed when the employer ends or does not renew a contract. It is generally one third of a gross monthly salary for each year of service, calculated from the first working day, so it can be owed even during probation. For 2026 it is capped at 102,000 euro, or one year's salary if the employee earns more than that.
Does a Dutch employment contract have to be in writing?
An employment relationship can exist without a signed document, but several important terms, including the probation period and a non-compete clause, are only valid if agreed in writing. The employer also has a duty to inform the employee of the essential terms of the job. In practice you should always use a written contract, and you must do so to rely on probation or a non-compete.
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