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In the Netherlands, the following must be adhered to under strict local legislation:
In the Netherlands, employees are generally salaried and paid monthly. They must be registered using a social security number, and must complete a salary tax declaration when starting a new role. They may also be entitled to a 30% ruling whereby some earnings are exempt from income tax if they are classed as highly-skilled expats. We can handle the application for this on your behalf, if required.
When an employee is sick, they will generally be entitled to a minimum of 70% salary and can receive pay for up to 2 years depending on their illness. The employer will need to register the sickness with the Employee Insurance Agency (UWV) and the employee will receive a notification of payments within four days.
Dutch employment rights are fairly strict so we suggest speaking to one of our Employment Law Advisors before you take any action. Dismissed employees normally qualify for a severance payment based on length of service and earnings. We can handle all aspects of this to ensure compliance throughout the process.
PeoplePay Global are here to assist with all your Payroll and HR requirements in Netherlands.