Why this matters now Recent changes in Dutch legislation are increasing the pressure on employers. The long-standing enforcement pause on the Wet DBA ended on January 1, 2025. Since then, the Dutch Tax Authority has been able to impose immediate corrections and retroactive tax assessments, going back no further than January 1, 2025. Only in cases of bad faith or failure to follow prior instructions can the look-back period be extended further. In 2025, no fines will generally be imposed, except in situations involving bad faith.
These changes come on top of the Netherlands’ already employee-friendly laws. As a result, American companies operating here face a steep compliance learning curve.
“In the U.S., at-will employment is the norm. In the Netherlands, dismissals must follow a legal process, include proper notice, and often involve substantial severance,” said Claire van Zanen employment law specialist at EmployerLegal. “We’ve seen companies run into serious trouble simply because they assumed their U.S. policies would work here.”
Under Dutch law, employees have strong protections regarding termination, working hours, paid leave, and benefits. Many workplace rules are also dictated by collective labor agreements (CAOs), which can override company handbooks and standard U.S. policies.
Trends U.S. companies should be aware of
· Steady growth in the American expat population in the Netherlands over the past decade
· Increased inspections and penalties for labor law violations in 2025
· Greater scrutiny of cross-border employment arrangements
Recommendations for U.S. employers
· Review all Dutch employment contracts before assignments begin
· Ensure correct classification of employees and contractors
· Obtain necessary work permits before deployment
· Align U.S. HR policies with Dutch collective agreements and statutory rights
About EmployerLegal
EmployerLegal is a Netherlands-based law firm specializing in employment law and HR compliance for international companies. We focus on three core areas: termination and reorganization, illness and reintegration, and conflicts and underperformance, providing practical and legally sound solutions that protect your business and maintain strong working relationships.
Media Contact
Company Name: EmployerLegal
Contact Person: Thijs Bakker
Phone: +31 88 205 1735
Country: Netherlands
Website: https://www.employerlegal.nl/en/