Employer of Record (EOR) in the Netherlands

Hiring employees in the Netherlands without a local legal entity can be a complex and operationally risky process. From strict labour protections and dismissal rules to Dutch tax reporting, social security contributions, and work permit requirements, every element of employment must align with local law.

Acumen International’s Global Employer of Record (EOR) solution enables companies to compliantly hire, pay, and manage local and foreign talent in the Netherlands without setting up a Dutch entity. We act as the formal legal employer, assuming full responsibility for employment contracts, payroll, tax filings, benefits administration, and immigration, while you retain full operational control of your team.

Whether you're onboarding one specialist or building an entire team, our EOR model removes the barriers to compliant workforce engagement, reducing risk, accelerating time-to-hire, and supporting business continuity in the Dutch market.

What Is a Global Employer of Record?

A Global Employer of Record (EOR) is a legal employment solution that enables companies to hire staff in countries where they do not have a local entity. The EOR becomes the formal employer on paper, taking full responsibility for employment contracts, payroll, tax contributions, statutory compliance, and immigration, where relevant. The client retains day-to-day control of the employee’s role and performance.

For international employers hiring in the Netherlands, a Global EOR can eliminate the need to establish a Dutch legal entity while ensuring all employment relationships are structured in accordance with national labour and tax laws.

Why Use a Global EOR in the Netherlands?

Hiring in the Netherlands involves navigating strict labour protections, tax registration, local contract templates, and regulations governing termination, pensions, and immigration. A Global EOR allows you to:

Avoid permanent establishment (PE) risk
Compliantly engage both local and foreign workers
Eliminate contractor misclassification risk
Access Dutch employment infrastructure without local incorporation
Handle payroll, benefits, and tax reporting under Dutch law

Whether you’re hiring local specialists, relocating key talent, or converting contractors, the EOR model delivers fast, compliant, and risk-mitigated hiring.

Replace Multiple Dutch Vendors with One Compliant Employment Partner

Instead of juggling local providers for payroll, legal, tax, HR, immigration, and benefits, a single Global EOR streamlines all employment components under one roof.

Service Area	Traditional Approach	With Global EOR
Payroll	Local payroll company	Fully managed under local tax law, net-to-gross, filings, and remittance handled end-to-end.
Employment Contracts	ELocal HR consultant or employment lawyer	Locally compliant contracts issued and updated by EOR as legal employer.
Tax Compliance	Dutch tax advisor	Income tax, social contributions, and annual reporting managed by EOR.
Employee Benefits	Local broker or insurer	Statutory and optional benefits bundled and administered through EOR arrangements.
Work Permit Sponsorship	Immigration consultancy	EOR acts as recognised sponsor and handles visa processes directly.
HR Data & Records	Internal admin or outsourced HR system	Employee onboarding and exit, data compliance, document storage, notice, settlements, de-registration handled by EOR.
Legal & Compliance Advice	External law firm or compliance consultant	Ongoing compliance built into the EOR’s operating framework.

EOR in Practice: End-to-End Employment Setup in the Netherlands

A qualified EOR provider handles all statutory and optional employment lifecycle tasks. Typical scope includes:

Before Hiring

Local employment contract preparation
Salary benchmarking and benefits alignment
Work visa application (if needed)

During Employment

Monthly net-to-gross payroll calculation and remittance
Income tax and social contributions
Employee registration with Dutch authorities
Paid leave and sick leave tracking
Expense reimbursement and allowances
Statutory benefits and private health insurance (if applicable)

Offboarding

Termination notice and settlement
De-registration with tax and social bodies
Exit documentation and final payments

Acumen International also supports dependent visas, relocation planning, and specialised onboarding for executive or sensitive roles.

Key Employment and Compliance Risks in the Netherlands

Hiring in the Netherlands without correct structuring exposes companies to multiple legal and operational risks:

Permanent Establishment (PE): Unstructured local activity may trigger Dutch corporate tax obligations.
Employee Misclassification: Misusing freelance arrangements can result in fines and back-pay obligations.
Underpayment or Incorrect Taxation: Dutch tax authorities impose penalties for inaccurate payroll and filings.
Immigration Breaches: Sponsoring a work permit without proper employer status can render the employee’s legal right to work invalid.
Dismissal Rules: Dutch law requires clear justification and a process for termination; ad hoc exits may be blocked or challenged.

A Global EOR acts as the buffer, absorbing employer liability and enforcing compliance throughout.

Local Context: Hiring in the Netherlands (2025 Update)

Minimum wage (April 2025): €13.27/hour (approx. €2,295/month based on 40-hour week)
Social security contributions: Employer contributions typically 18%–23% of gross salary
Holiday entitlement: 20 statutory days minimum, with most companies offering 25+
13th-month salary: Common, though not mandatory
Public holidays: 8–11 annually, depending on the region
Probation: Maximum 2 months for permanent roles
Notice periods: Vary by tenure, from 1 month to 4+ months

Work permit sponsorship is typically required for non-EU nationals and must be handled by a recognised sponsor.

How Acumen International Supports EOR Hiring in the Netherlands

Service Scope
We manage compliant hiring across the Netherlands through our Global EOR solution, covering contract localisation, onboarding, payroll, benefits, and lawful terminations.

Employer Responsibilities
We assume all formal employer obligations, including salary payment, social security registration, tax reporting, and employer contribution filings.

Immigration Support
For non-EU hires, we act as the registered sponsor and manage all steps in the work permit and visa application process, including extensions, dependents, and renewals.

Risk and Compliance
We mitigate PE, misclassification, dismissal, and payroll risks by structuring employment under Dutch law. We monitor regulatory changes to keep clients ahead of enforcement shifts.

Use Cases for Using an Employer of Record (EOR)

1. Entering a New Market Without Setting Up a Legal Entity

Companies expanding into a new country often lack the time, budget, or strategic justification to establish a local subsidiary. An EOR enables them to hire local employees compliantly from day one, without the delays or overhead associated with incorporation.

Example: A US-based renewable energy firm hires an on-the-ground project manager in the Netherlands to oversee operations while it evaluates market demand.

2. Hiring Remote Employees in Countries with No Local Presence

As distributed work becomes standard, employers often identify ideal candidates in jurisdictions where they have no legal entity. An EOR enables them to employ that talent compliantly without resorting to risky contractor arrangements.

Example: A UK software company wants to hire a senior developer based in the Netherlands with full benefits and local protection.

3. Converting Independent Contractors into Compliant Employees

Long-term or full-time freelancers in many countries may meet the legal definition of an employee. An EOR enables companies to transition these workers to formal employment, thereby reducing the risk of misclassification and ensuring regulatory compliance.

Example: A digital agency working with a long-term freelancer in Amsterdam uses an EOR to convert them to full-time employment without setting up a Dutch branch.

4. Hiring Foreign Nationals with Work Permit Requirements

In many countries, employers must hold recognised sponsor status to hire non-nationals. A Global EOR can provide this infrastructure, sponsoring the visa and managing legal employment.

Example: A US tech startup wants to hire a South African data scientist residing in the Netherlands but lacks the sponsorship licence to do so.

5. Scaling Up Quickly for Time-Sensitive Projects

When launching a new project or client engagement in a foreign market, timelines often don’t allow for local entity setup or legal red tape. EOR enables immediate hiring and deployment.

Example: An engineering firm wins a 6-month infrastructure contract in the Netherlands and needs to mobilise local staff and short-term expats under compliant contracts.

6. Supporting M&A Workforce Integration Across Jurisdictions

During post-acquisition integration, legal employer transitions can be complex, especially in countries with strict dismissal and re-hire laws. EOR offers a clean, compliant structure during interim or long-term integration.

Example: After acquiring a Dutch software firm, a US acquirer uses an EOR to rehire key staff while restructuring legal operations.

7. Running a Market Test or Pilot Programme Without Full Commitment

Businesses trialling a new service, location, or market segment can use an EOR to place staff temporarily, avoiding the risk and cost of incorporation until commercial viability is confirmed.

Example: A German healthtech firm deploys a customer success team in the Netherlands for a 12-month pilot via EOR before committing to a full branch office.

8. Ensuring Business Continuity During Entity Wind-Down or Restructuring

If a company closes its local entity or restructures its presence in a country, EOR can maintain employment continuity for essential staff during the transition.

Example: A multinational closes its Dutch BV but retains two senior engineers using an EOR arrangement to ensure IP continuity and handover.

9. Supporting Global Benefits, Payroll, and Contract Standardisation

Global HR teams often struggle to manage payroll, benefits, and compliant contracts across multiple countries. EOR provides unified service delivery with localised execution, improving governance and employee experience.

Example: A US multinational streamlines its international HR by consolidating payroll and HR compliance for 12 countries under a single EOR provider.

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