A Guide To Understanding Dutch Working Culture

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Gino Peters

Written By:

Gino Peters

Reviewed By: Belinda E.

June 3, 2026 8:16 pm

Category Tag: News

The rise of remote work made international expansion much easier in recent years, but hiring abroad still comes with legal and administrative complexity, as every country has its own labour laws and payroll rules that must be followed. In addition, not many companies can open a new entity in every new market that they are expanding into. That is when the Employer of Record (EOR) solution comes in handy.

The EOR serves as the legal employer on paper, while the client company manages important activities related to the employees responsibilities and performance.

In this guide we will cover what an employer of record is, how it works in detail, how much it can cost and which business should consider an EOR solution.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third party service provider that legally employs a person on behalf of another company in the country where the employee officially resides. As an official employer the responsibilities of EOR include issuance of an employment contract, processing payroll and withholding taxes and necessary social security contributions, as well as preparation of offboarding documents or any documentation that need to be signed by the employer. In addition, EOR ensures the compliance with local labour laws and serves as a first point of contact for any legal disputes.

The client company that hired the employee through an EOR also has a list of responsibilities. As an Employer of Record does not have the visibility on operational activities behind the scenes a client company needs to provide direction and ensure proper team integration.

In simple terms, the EOR provider acts as a legal employer in the country of the employee’s residence, while the client company takes on day-to-day manager work.

Responsibility	Employer of Record (EOR)	Client Company
Employment contracts & any other official documentation
Payroll processing
Income tax & social security contributions
Compliance with local labour laws
Statutory benefits administration
Managing daily work and projects
Setting goals and performance expectations
Providing equipment and tools
Leading the employee’s team and workflow

Employer of Record solutions gain more and more popularity in the field of global expansion as they allow businesses to hire best candidates fast and easy while staying compliant with local employment regulations. More information about EOR service are available if you would like to understand more.

EOR Meaning

The term “EOR” is the abbreviation for Employer of Record.

Employer in this instance stands for the company that hires the employee and takes on duties related to it, such as onboarding and offboarding process, payment of wages and compliance with other legal requirements.

“Record” from the EOR perspective refers to official registration with government authorities. The name of the EOR provider is stated in all payslips and tax filings, and should also be listed by the employee in any documents where employer must be stated, such as mortgage or loan applications.

One might ask a question of why this legal structure exists. As it is not possible to provide an employment contract directly to a person that legally resides in another country, the business expanding abroad typically needs to establish a local entity. That involves legal registration, arrangement of local bank accounts and organisation of payroll structure, as well as compliance with local law.

EOR allows to simplify the global hiring and reduce administrative burden through their existing legal entity.

There are some other hiring models that can be confused with EOR.

EOR and PEO

Many sources online refer to EOR as “international PEO”, which may create confusion as these models have 1 important difference.

A Professional Employer Organisation (PEO) serves as a co-employer of a client company. In other words, a business must already have an established entity in the country. The hiring tasks are, therefore, shared between 2 companies, while legal liability stays only with the client company. In the EOR model all legal risks are being taken by the official employer. Read more about the difference between PEO and EOR here.

EOR and staffing agency

Staffing companies mainly provide assistance for short-term projects by providing temporary workers. If the client wishes to employ a person for a longer time, EOR approach must be chosen.

EOR and contractor model

Contractor agreements assume the involvement of independent workers rather than employees. This model is also often used for temporary, project-based assignments. It is important to remember that there is a big misclassification risk between a contractor and an employee in the company which can lead to potential legal issues. An EOR ensures that employment is legally compliant with local labour law.

How does an Employer of Record work?

While it may sound complicated at first, a process behind the employer of record model is relatively straightforward.

The operating company selects a candidate

The client company recruits the employee they want to hire in another country

The EOR becomes the legal employer & local employment contract is issued

The Employer of Record uses its local legal entity to prepare and issue an employment contract that complies with labour law of the country where the employee is based. Depending on case-by- case situation, the work visa might need to be secured beforehand. Our company provides immigration services, more details can be found here.

Payroll and taxes are managed

The EOR takes on recurring responsibilities related to a payroll and ensures correct processing of income tax, social security contributions etc

Benefits are administered

Paid leave, sick leave, pension contributions and any other statutory benefits are being managed by the EOR.

Ongoing compliance and HR support

It is the responsibility of the EOR to monitor changes in local labour law and ensure ongoing compliance.

Example:

Imagine a UK-based tech company found a perfect candidate in Germany for a position of a software developer.

Instead of going through the administrative burden of opening a legal entity in Germany, the company chooses to work with an Employer of Record. The EOR hires the developer under a German employment contract and manages payroll and taxes. At the same time the UK company welcomes the new employee in the team and manages the daily work of a developer.

What services does an Employer of Record provide?

The Employer of Record does more than just providing an employment contract to the employee. Typically a wide range of HR and compliance services is included in the EOR offer. For example, read about the services included in our EOR package here.

Employment and HR administration

Locally compliant employment contracts and support with other documents requested by authorities
Employee onboarding
Employee record management. For example, control over PTO

Payroll and tax management

Regular payroll processing
Tax withholding and reporting of social security contributions with authorities
Payslip generation and creation of annual wage tax certificates

Benefits administration

Management of statutory benefits
Pension contributions (where required)
Support with benefits such as maternity leave allowance, sick leave allowance etc

Compliance and risk management

Insuring compliance with local labour law
Management of onboarding and offboarding processes
Representation in difficult legal and court cases

Additional services:

Some EOR providers ( such as ThisWorks EOR Services) provide additional services such as:

Work permit and dependent visa support
Background checks
Relocation support
Value added services: support with housing, company car, banking, etc ( depending on the country).

This vast list of services allows businesses to manage international teams, while staying compliant and avoiding complex local employment administration.

Benefits of using an EOR service

There are multiple advantages the businesses can get from working with an Employer of Record provider.

Faster global hiring

Setting up a new entity can take up to several months. With an EOR the hiring process can take several days.

Reduced compliance risk

A trustworthy EOR provider ensures the compliance with all local regulations. As the labour law varies greatly between countries, having a knowledgeable party to rely on can make a big difference.

Lower expansion costs

Establishment of a new entity is not only a time-consuming process, but also costly. With EOR services these costs can be avoided.

Access to global talent

The location of a remote candidate is not a problem if the company uses Employer of Record services. In other words, the best candidate for specific business purposes can be chosen.

Scalable hiring model

EOR services are ideal for organisations that want to scale international hiring quickly. They are particularly useful in the following situations:

Remote-first teams and organisations
Companies testing new markets abroad
Startups expanding internationally

How to choose the right Employer of Record

Choosing between several EOR providers is important, as it influences not only compliance, but also employee experience for new hires and how your company is perceived on the job market.

Here are some important things to keep in mind when deciding on your EOR partner:

Geographic coverage

Make sure that EOR provider can cover the country where you want to expand globally. Read about our EOR coverage here.

Pricing transparency

Check that EOR provider does not have any hidden costs and the pricing is clearly outlined in your MSA.

Compliance expertise

A strong EOR provider should have a team of experienced local HR specialists who understands all in and outs of a national labour law.

In-house vs partner model

Some EOR providers rely on their third-party partners, while others manage employment directly through their own local entities.

Customer support

It is important to find a EOR partner that helps with any questions or concerns in a quick and professional manner. That can be crucial when dealing with employee offboarding or any legal disputes.

Warning signs

Understanding the importance of choosing a right party, your company should be cautious of providers that lack local expertise and cannot give clear answers to your labour law questions. In addition, companies with slow response times can prove to be unreliable in critical situations. Furthermore, providers with complex pricing models with many hidden fees can create a lack of cost transparency and result in unforeseen expenses.

By selecting a provider with strong expertise in local labour law and reliable support from dedicated teams, your company can ensure a smooth international growth. Learn why companies choose ThisWorks as their EOR partner.

How much does an employer of record cost

The vast coverage of services the employer of record provides makes many businesses ask how much an EOR costs.

Pricing models vary greatly on the provider and the country of coverage, but most EORs use one or more of the following structures.

Flat monthly fee per employee.

The EOR provider charges a fixed monthly fee for each employee they have on the payroll from the client.

Percentage of salary

While not being a popular approach, some EOR providers charge a percentage of the employee’s salary, typically ranging between 5%-15%.

Setup fees

Some providers charge onboarding or offboarding fee for each employee.

The fee that the business needs to pay to an EOR provider also depend on the location of a service. Local labour law complexity of some countries can influence the fee. In addition, some countries have specific statutory benefits and payroll administration requirements. Furthermore, employee headcount in the specific location can influence the fee.

EOR vs setting up a legal entity

To establish a new entity the organisations needs to go through legal and tax registration. In addition, accounting support and ongoing compliance costs such as the fees for local labour lawyers can make setting up a legal entity significantly more expensive.

An EOR allows companies to expand globally without these upfront investments.

EOR vs hiring contractors

Some businesses decide to hire international workers as contractors. However, this approach can often lead to a misclassification risk, which can cause legal and tax liabilities.

A professional EOR provider ensures that the new starters are compliantly onboarded under local employment regulations.

EOR FAQs

Is an EOR the same as a PEO?

No. PEO model assumes co-employment and requires the business to already have established local entity, while EOR employs new talents through its own entity only.

Can an EOR hire contractors?

While some EOR providers can support hiring contractors, it is important to remember that main function of EOR is the employment of full-time workers legally in a country. A risk of misclassification between EOR and contractor should be also considered carefully.

Is an employer of record legal?

Yes, when established and structured properly, Employer of Record entities are legal and widely used for international expansion by many companies.

When should you use an EOR?

The most common reason for using EOR include:

Hiring employees located in another countries remotely
Testing new markets before establishing an entity
Expanding internationally

Can you switch from EOR to your own entity?

Yes. Many companies initially hire through an EOR for the ease and speed of expansion and later transition employees to own legal entities upon their establishment. It is important to remember that some countries require specific procedure to be followed in such a scenario.

Get in touch with ThisWorks

Expanding your team globally does not need to be long and administratively complex.

With the use of Employer of Record the businesses can have access to the best talent from around the world while ensuring full compliance with local labour laws.

ThisWorks can support your global expansion with our compliant Employer of Record services.

Contact our team to find our how we can help your international team glow fast and compliantly!

Navigating Dutch Working Culture – A Comprehensive Guide

People all over the world know that the Netherlands has a great quality of life, advanced ideas, and efficient ways of working. If you want to do well in the Dutch business world, you need to understand how people work there. Many small things make up the Dutch work culture, such as an informal workplace, direct contact, and being on time. This in-depth guide will go over all of these topics and give you useful tips on how to adapt and do well in the Dutch business world.

Unique Characteristics of Dutch Work Culture

The Dutch work culture stands out with its distinctive elements that differentiate it from other countries. Let’s delve deeper into these key aspects:

Accepting casualness

Dutch workplaces are known for being casual and welcoming to everyone. Hierarchy is not as clear-cut as it is in many other countries, and people in the same company often call each other by their first names, no matter what role they hold. This casual setting makes everyone feel like they belong, which encourages team members to talk to each other and work together.

Setting priorities and balancing work and life

One important part of Dutch work culture is that people are expected to keep a good work-life balance. Personal time is very important to Dutch workers, and they work hard to make clear boundaries between work and fun. Because of this commitment to balance, many companies offer flexible hours and part-time work, so workers can take care of their personal and professional obligations outside of work.

Putting a value on direct communication

Being direct is a big part of how Dutch people talk to each other. People are told to be open and honest about their thoughts, even if it means giving feedback or criticism. This straightforward method not only encourages openness but also speeds up the process of making decisions. By encouraging open and honest conversation, Dutch workplaces help team members understand each other and work together well.

Focusing on being on time

Being on time is an important part of Dutch work culture and is seen as a basic sign of respect for other people’s time and tasks. Whether they are on time for meetings or projects, Dutch workers put being on time at the top of their list of priorities. Following through with plans and due dates shows a strong sense of respect and responsibility, and helps organizations run smoothly.

The Dutch work culture is a unique mix of being casual, having a good work-life balance, talking to people directly, and being on time. Professionals can easily handle the Dutch business world by embracing these unique traits. They can also help create a thriving workplace based on mutual respect and teamwork.

Tips for Adapting to Dutch Work Culture: Navigating with Ease

Adapting to the Dutch business environment requires a nuanced approach. Here are some insightful tips to help you thrive:

Embrace informality and make connections

The casual atmosphere in Dutch workplaces makes it easier for people to get along and work together. Don’t be afraid to call your co-workers by their first names and start casual talks. Taking part in office events builds a sense of community and strengthens relationships within your team, which makes it easier to work together.

Work-life balance should be respected and put first

Understand how important it is to keep a good balance between your work and home life. Show that you care about having a good work-life mix by not sending work-related emails after hours unless you have to. Put your health and fun activities first to stay inspired and recharge, which will help you be more productive in the long run.

Use direct communication to work together more effectively

In Dutch conversation styles, being direct is very important. Get ready to talk to your co-workers and bosses honestly and clearly. Do not be afraid to say what you think or ask questions. But it’s important to do so in a way that is respectful and helpful, creating an atmosphere where people value each other and work together.

Develop punctuality as a sign of professionalism

Being on time is an important part of Dutch work culture and shows that you are professional and value other people’s time. Regularly show up for meetings and meet project due dates to develop the habit of being on time. If you expect any delays, let your team know ahead of time to keep the lines of communication open and build trust.

You can easily fit in with the Dutch work culture and do well in the fast-paced business world if you embrace informality, value work-life balance, communicate directly, and show up on time. These tips will not only help you adapt, but they will also help you make real links and do well at work.

Balancing Work and Personal Life in the Netherlands

Making sure you have a good mix between work and personal life is an important part of Dutch working culture. In the Netherlands, family and free time are more important than work hours, which is different from some other countries.

There are a lot of flexible work choices in the Netherlands, such as part-time schedules and the chance to work from home. This gives workers the freedom to change their work hours to fit in personal obligations or hobbies outside of work.

Employers also know how important it is to help their workers find a good work-life balance. A lot of research has shown that workers who feel like they can balance their work and personal obligations are more loyal to their companies, productive, and engaged.

If you want to find a good balance between work and home life in the Netherlands, try these ideas:

Protect yourself

Make it clear when work time ends and playtime starts. If it’s not an emergency, don’t check work emails or answer the phone outside of work hours.

Set goals and take care of yourself

Do things that are good for your physical, mental, and social health as part of your self-care routine. Schedule time for things that will recharge your batteries, like working out, spending time outside, or doing hobbies.

Tell people what you expect

Tell your boss and co-workers the truth about how you want to balance your work and personal life. Talk to your boss ahead of time if you need to change your work plan or take time off for personal reasons. Make sure everyone knows what is expected of you.

Learn to manage your time well

Learning how to handle your time well will help you get more done during work hours. To get the most out of your time at the office, set reasonable goals, prioritize chores, and cut down on distractions.

By putting work-life balance first and being proactive about managing your time, you can have a fulfilling job and a fulfilling personal life in the Netherlands.

Effective Communication in Dutch Workplaces

The Dutch way of working is based on direct contact. When people talk to each other, whether it’s about project reports, giving feedback, or solving problems, they value honesty, clarity, and openness.

Here are some tips for effective communication in Dutch workplaces:

Make it clear and short

It’s very important to be clear and to the point when talking to co-workers or clients. To avoid mistakes, it’s important to be clear and not vague. To ensure clear conversation and understanding, get to the point and say what you want to say quickly.

Be honest about your thoughts

Being honest and real is very important in Dutch society when talking to other people. Don’t be afraid to say what you think, even if it’s different from what your co-workers think. The Dutch like hearing different points of view and respect people who aren’t afraid to say what they really think about important issues.

Pay attention

Listening is an important part of communicating clearly because it works both ways. Listen carefully, ask questions to help you understand, and thank people for their feedback. Respecting your co-workersâ points of view leads to more meaningful conversations and stronger working relationships.

Feedback you can give and get being constructively

Feedback is very important for both personal and professional growth. Approach the process with an open mind and a positive attitude, whether you are giving or getting feedback. Focus on specific actions or results and give ideas for how to make things better to help growth and development.

Know how to read nonverbal cues

People’s body language, facial movements, and tone of voice can tell you a lot about how they’re feeling or what they’re thinking. Paying attention to these small cues helps you understand what’s being said and makes it easier to work together and communicate.

You can work together well with your Dutch co-workers and have good relationships with them if you improve your communication skills and follow the rules of being honest, being clear, and actively listening.

Dutch Business Etiquette and Norms

For professional interactions and building strong ties in the Netherlands, it’s important to know and follow Dutch business etiquette. Dutch culture may seem less formal than that of some other countries, but there are still rules and habits that people should follow when they are doing business.

Here are some key aspects of Dutch business etiquette to keep in mind:

Being professional

Even though Dutch workplaces are more casual, politeness is still very important. When you go to a business meeting, dress modestly and properly, and always be polite and respectful.

Being on time

As was already said, being on time is an important part of Dutch society. Show that you can be relied on and value other people’s time by being on time for meetings, schedules, and networking events.

Being direct

The Dutch like to talk to each other directly and respect co-workers who say what they really think. Don’t hide your feelings or send vague messages; be honest and direct in your conversations.

Linking up

In the Netherlands, networking is a big part of doing business. Go to conferences, events, and networking events in your field to build your business network and meet other people in the same field.

Meetings for business

When you go to a business meeting in the Netherlands, make sure you are ready to add to the conversation. Keep your presentations short, and don’t take over the chat. Actively listen to what others have to say and work with others to solve problems.

Keep up with it

Following up with a thank-you email or message after a meeting or other business contact is seen as polite. Thank them for the chance to meet and go over any important points that were brought up during the meeting again. This shows that you are a professional and shows that you want to keep a good relationship with your co-workers.

Making friends

In Dutch business society, it’s important to make friends outside of work. People you work with, or clients may ask you to join them for lunch or drinks after work. Saying yes to these invites is a great way to build business relationships and get to know your co-workers better outside of work.

Giving gifts

Even though it’s not popular in Dutch business culture, small gifts can be given to show appreciation on holidays or when someone reaches a big goal. Don’t give gifts that are too big or too expensive, because they might be seen as unsuitable or too much.

Bribery and corruption is prohibited in the Netherlands, and there are specific guidelines advising against the giving of large gifts in a business context.

Honour differences in culture

People from all over the world live in the Netherlands, making it a very diverse country. When you are working with people from different backgrounds, show respect for their differences and be aware of cultural sensitivity.

Language

There are a lot of Dutch people who speak English very well, especially at work. However, learning a few simple Dutch words can be very helpful. It shows that you care about the language and customs of the area and can help you get along better with your Dutch co-workers.

If you follow these rules of etiquette and show respect for Dutch traditions and customs, you can make friends and feel confident in your business interactions in the Netherlands.

Conclusion

To get along in the Dutch work culture, you need to know about its unique traits and beliefs. The Dutch business world is shaped by many small details, such as an informal work setting, the value of direct communication, being on time, and finding a good work-life balance.

You can adapt to and do well in the Dutch workplace by being casual, putting work-life balance first, communicating directly, and following Dutch business etiquette. Remember to be aware of and accept cultural differences, listen to your co-workers, and build strong professional relationships based on trust and respect.

Whether you’re new to the Netherlands or have worked here for a long time, you need to understand and accept the Dutch way of working if you want to be successful and happy in your job. If you follow the tips in this guide, you’ll be able to do business in the Netherlands with trust and ease.

FAQs

In the workplace, how do the Dutch handle hierarchy?

The Dutch have a fairly flat structure when it comes to leadership at work. There is respect for power, but titles aren’t given as much weight, and people often work together to make decisions. This creates an environment where all employees, no matter what role they hold, feel free to share their thoughts and ideas.

What do the Dutch do to balance their work and personal lives?

In the Netherlands, work-life balance is very important. There are part-time jobs available and flexible work hours in the Netherlands. People also value their time, so workers can balance their work responsibilities with fun activities and time with family and friends.

Does the Dutch way of working value open communication?

Yes, direct contact is very important in the Dutch way of working. People are told to be open and honest about their thoughts and feelings, even if that means giving helpful feedback or questioning ideas. Putting a focus on being direct encourages openness, productivity, and a trusting and responsible work environment.

What’s the point of talks in the Dutch way of working?

Meetings are an important part of the Dutch work culture because they are where people work together, make decisions, and share information. But they are usually well-organized and focused, with a focus on getting things done quickly. Dutch professionals put a lot of value on being on time and ready for meetings. This makes sure that talks are useful, and decisions are made quickly.

How important is being on time at work in the Netherlands?

Being on time is very important at work in the Netherlands; it shows that you value other people’s time and commitments. On-time attendance at meetings, meeting project deadlines, and keeping appointments are expected in both business and social settings. Not being on time could be seen as rude or unprofessional.