Maximum Working Hours & Overtime Laws In The Netherlands

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Gino Peters

Written By:

Gino Peters

Reviewed By: Belinda E.

June 3, 2026 8:17 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!

Netherlands Working Hours Guide: Full-time, Part-time, and Legal Limits Revealed!

The Netherlands is known for its focus on work-life balance. This means that Dutch workers often enjoy shorter workweeks and more freedom compared to some other countries. To successfully adjust and work in the Netherlands working environment, it’s important to comprehend the rules about working hours. Knowing about Netherlands working hours regulations helps you understand your rights as a worker. These rules cover things like extra pay in Dutch companies and how to negotiate flexible work in the Netherlands. Learning and grasping the rules also helps you find a good mix between your work and private life.

Standard Working Hours in the Netherlands

If your aim is to work in the Netherlands then you should know how many hours are considered normal working hours in the country. The Dutch like a good work-life balance, therefore this is endorsed by their work laws. This means knowing your entitlements in the pros of employment such as extra pay in Dutch organizations and how to possibly create an open plan that is favorable for you.

Legal Definition of Full-Time Work (Typically 36-40 Hours/Week)

Dutch working hours legislation also offers clear provisions for setting full-time work. Conventionally, this implies being on duty for between 36 and 40 hours a week, which MAY be in a five-day workweek. These rules are designed to help minimize stress and to make an allowance for the ‘outside work’ part of one’s life.

Prevalence of Part-Time Work and Flexible Schedules

One great thing about working in the Netherlands is the focus on freedom. Dutch part-time work statistics prove that part-time work is generally accepted and promoted. Flexible plans are also popular, giving you choices like working longer days in trade for a shorter week or changing your start and end times to fit your lifestyle.

Sector-Specific Variations in Standard Workweeks

In this country, there is great attention is paid to freedom and that is something which is good about working in the Netherlands. This article presents statistical data on part-time employment relating to the Netherlands and they prove that the concept of part-time working is prevailing and encouraged. Another favorite is the flexible schedule which is basically the ability to choose between working long hours in the day in exchange for working fewer days in the week or working at different shifts to best accommodate the individual’s way of life.

Demographic Differences of Standard Workweek by Industry

Whereas the limit is set at 36 to 40 hours within the standard setup, some organizations may provide varying demands. For instance, healthcare providers are often known to practice their profession within shifts, and transport providers are likely to observe some set regulations in regard to the amount of time they spend at the wheel. It’s useful to find out what rights and rules apply together with the common ones because otherwise, you might miss out on important facts.

What Are Maximum Working Hours And Permitted Overtime In The Netherlands?

In the Netherlands, specific working hours regulations have been launched with a focus on your health. They achieve a balance between doing business or accomplishing tasks and, at the same time, observe that work and life are balanced. A number of constraints exist in terms of the number of hours you are allowed to work, weekly hours, and days/weeks/ months of work. With every work done, the system also makes sure you are compensated to the end and gives more reasons for companies to take caution when dealing with certain scenarios.

Daily and Weekly Limits

This helps to ensure that you do not get too exhausted on any one day – the rule is to have a maximum of twelve hours of work. Also, it is impossible to work for 60 hours in one week or be present at work from Monday to Friday till late at night. For continued safety, these limits become even tighter over time: Your hours per week cannot exceed 55 over four weeks or an average of 48 hours for sixteen weeks.

Overtime compensation in Dutch companies

The Dutch law provides an employee with the guarantee of an extra pay rate of not less than 150% of your hourly rate of pay. This implies the more hours you work, the more the rate of your earnings which is normally an encouragement. It would stand to reason to see if there is any Collective Labor Agreement (CAO) to your business as sometimes, these agreements may provide even higher extra pay rates to workers as the upside of this plan.

Exceptions and Special Cases

It needs to be recognized that the nature of some jobs might have you follow additional rules, and the standard rules don’t apply to them. For example, the shift workers usually may have other arrangements that do not comply with normal working days, so some adjustments are made for them. If you need to be on call even beyond the regular working hours, then depending on your industry and nature of work there may be certain pay policies for fair treatment for working extra hours.

Rest Periods, Breaks, and Holidays

Dutch labor legislation recognizes the density of working hours and this is evident in provisions for rest periods, tea/lunch breaks as well as public holidays. Knowledge about these rights will be useful for both the AUG and Non-AUG employees; sufficient time is afforded for the individual to rest and enjoy personal time.

1. Mandatory Daily and Weekly Rest Periods

For both AUG and non-AUG workers: The law requires a minimum of 11 straight hours of rest each day. Additionally, you’re allowed to have 36 straight hours of rest per week. These rest times are non-negotiable and apply equally to normal and casual workers. You can read more on that here.

2. Lunch and Short Break Entitlements

For Both AUG and non-AUG Workers: If your job takes more than five parts, each sub-section is considered a separate division of the whole job. 5 hours, and You’re allowed 30 minutes break. Of this break, it is possible to take shorter ones with the employer’s cue and permission. This applies to both the medical practitioners who through the program of augmentation belong to the AUG group and the workers who are not part of the augmentation program.

3. Legal provisions and Policy of National Holidays and Vacation Time

For Both AUG and non-AUG Workers: In the Netherlands, many state celebrations are observed during the course of the year. These events are often cause for paid time off among employees or with regards to employees. Moreover, you accrue 20 leave days per year for full work days according to the plan of work activities. All of these perks are applicable for both, the workers using AUGs and those who do not.

Temporary Work Agencies and Collective Bargaining in the Netherlands

The Dutch temporary work sector is significantly shaped by two main collective bargaining agencies: the ABU (Algemene Bond Uitzendondernemingen) and the NBBU (Nederlandse Bond van Bemiddelings- en Uitzendondernemingen). Both organizations play crucial roles in establishing fair practices and standards for temporary workers.

Algemene Bond Uitzendondernemingen (ABU)

The ABU is one of the major players in the Netherlands temporary employment sector. It represents the interests of temporary agencies and works to ensure ethical standards and fair treatment of workers. The ABU is involved in negotiations that determine wages, working hours, and other employment conditions under its collective agreements, which are essential for protecting temporary workers’ rights.

Nederlandse Bond van Bemiddelings- en Uitzendondernemingen (NBBU)

The NBBU is another key collective bargaining agent for the Dutch temp agency industry. It focuses on small and medium-sized enterprises (SMEs) in the staffing and recruitment industry. Similar to the ABU, the NBBU sets and maintains standards for employment conditions in temporary work contracts.

Working Hour Regulations for Temporary Workers

Temporary workers in the Netherlands, whether under ABU or NBBU regulations, are generally subjected to the same working hours’ regulations as permanent employees. This includes adherence to the maximum limits of 12 hours per day and 60 hours per week, with further constraints over longer periods to ensure workers’ well-being and safety.

Overtime Compensation for Temporary Workers

According to Dutch law, temporary workers’ overtime compensation is mandated at a minimum rate of 150% of their normal hourly wage. However, the specific collective labor agreements (CAOs) of ABU or NBBU can offer different terms, potentially providing even higher overtime pay rates, underscoring the importance of these organizations in advocating for worker benefits

The Role of ABU And NBBU In Employee Rights and Remuneration

As for legal regulation of agencies and cases of violation of Dutch employment law and conditions of collective agreements, it is important to note that both ABU and NBBU act as regulatory authorities in this matter. These organizations have the responsibility of handling such matters and ensuring that the temporary workers are protected from exploitation, paid well, and are provided with working conditions that meet the standard set by the government of the country in question.

Temporary workers need to know how to determine which collective agreement applies to their status and being a temporary worker and this can impact their employment status. Because temporary employment is a dynamic form of employment that may be subject to change at any one period of time, the details of such contracts are well suited to respond to these variations in demand that may occur in different industries.

Flexible Working Arrangements

The Netherlands’ theme of freedom regarding the workplace is well-known. Having utilized the first 26 weeks of your employment, you are entitled to file for flexible working hours and therefore be allowed to make your work plan more flexible. Now it’s time to explore the specifics of flexible plans more in detail, discuss how to manage them effectively, and last but not least address how the Dutch working life shaken up by recent events has impacted this practice.

At the core of the relationships between the LMEs and their employees, there are four general types of flexible arrangements:

Compressed Workweeks: Shift to a system whereby you work full time in a shorter number of days to be given an additional day off each week.
Remote Work: There is an option to choose where to work, which can be at home or another location, which will help to save time on commuting and may enhance focus.
Job Sharing: Circumstances, where one position – a full-time one at that – is effectively divided between two people, is when one is still able to balance the job along with other commitments.
Part-time Options: Dutch part-time work statistics show how popular this is, allowing for a better work-life mix. Last year around 48% of the working workforce worked part-time in the Netherlands.

Frequently Asked Questions

What is the standard Dutch working week?

A normal Dutch working week usually consists of five working days, with full-time work generally falling within a 36-40-hour range per week.

How many hours constitute a full-time job in the Netherlands?

In the Netherlands, full-time work is generally described as working between 36 and 40 hours per week.

What are the advantages and disadvantages of working part-time?

Advantages:

Better work-life balance
More time for personal interests, family, or schooling
Potential for lower stress

Disadvantages:

Lower pay compared to full-time work
Potentially fewer chances for job growth
Sometimes lower perks, based on the company

Are there legal limits to working hours in the Netherlands?

Yes, the Netherlands has clear law limits on working hours. You cannot work more than 12 hours in a single day or exceed 60 hours of work per week. The law also sets longer-term limits to protect your health and well-being.

Do employees in the Netherlands receive compensation for working overtime?

Yes, Dutch law requires extra pay. The minimum extra pay rate is 150% of your normal hourly wage. However, Collective Labor Agreements (CAOs) within your industry might offer even higher extra pay rates.

Is it common to have flexible working hours in the Netherlands?

Yes, flexible working hours are very popular in the Netherlands. Many companies offer choices like shortened workweeks, online work, job sharing, and flexible start and end times. After 26 weeks of employment, you have the legal right to request a flexible work plan.

Building a positive remote culture involves promoting work-life balance, encouraging social interaction, and supporting mental health. EORs can aid in these areas by offering access to wellness programs and facilitating virtual team-building activities.