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An indefinite contract is the standard form of permanent employment agreement in the Netherlands, establishing an ongoing employment relationship without a specified end date. Under Dutch employment law, this type of contract provides maximum job security for employees while giving employers access to stable, long-term workforce arrangements. You'll need this document when hiring permanent staff members who will become integral parts of your organization.

When do you need this document?

You need an indefinite contract when establishing any permanent employment relationship in the Netherlands. This applies whether you're hiring your first employee, expanding your team, or converting temporary workers to permanent positions. Dutch law favors indefinite contracts over fixed-term arrangements, and after multiple successive fixed-term contracts or 36 months of employment, relationships automatically become indefinite. You'll also need this when relocating international employees to Netherlands-based positions or when Dutch subsidiaries hire local staff members.

Key legal considerations

Several critical clauses require careful attention in your indefinite contract. The probationary period cannot exceed two months for indefinite contracts, during which either party can terminate with immediate notice. You must include mandatory holiday allowance (vakantiegeld) of at least 8% of annual salary, payable before June 1st each year. Notice periods vary based on employment duration, ranging from one month for employment under five years to four months for employment exceeding fifteen years. Salary and working hours must comply with applicable collective labor agreements (CAO) and minimum wage requirements. Include clear job descriptions, as changing an employee's role significantly may require contract amendments or consultation procedures.

Legal requirements in Netherlands

Netherlands employment law mandates specific provisions in all indefinite contracts. Under the Dutch Civil Code, you must specify working hours, overtime arrangements, and rest periods complying with the Working Hours Act (maximum 48 hours per week). Include pension scheme participation, as most employers must provide occupational pension arrangements. Address sick leave entitlements, as Dutch law guarantees continued salary payment for up to two years during illness. Specify vacation days (minimum 20 days annually for full-time employment) and public holidays. Include termination procedures following the Work and Security Act, which requires transition payments for employees with contracts exceeding two years. Consider including non-compete clauses, though these are strictly regulated and must be proportionate, time-limited, and serve legitimate business interests. Finally, ensure compliance with the Working Conditions Act by referencing workplace safety obligations and employee health requirements.