- We offer payroll solutions to international companies that want to set up a business in the Netherlands, but do not have the legal structure to run a payroll for the employees.
- We offer payroll solutions to Dutch based companies that want to employ international employees but do not yet have the required registration with the Dutch immigration services to do so.
We offer a temporary employment solution for our client and for the employee. The employee will be employed by Employor directly and seconded to our client. During this secondment, our clients have time to set up a structure that allows them to employ the employee directly without our mediation.
Employor is registered as a sponsor with the Dutch immigration office (IND) and is therefore able to support in the application for the necessary residency and work permits. Once the client is able to have the employee directly on their payroll, we can assist in the transition.
We do not, however, offer immigration services: as an extra quality check, all applications we handle must go through an immigration lawyer.
Employor stands for transparency when it comes to the costs. This is why we do not work with commissions constituting a percentage of the employee’s salary. We cross charge the total cost for the employee, equal to the cost the client would have had in case the employee was on the client’s payroll.
One-off fees, paid once only include: Set up fee for setting up the contracts and payroll of € 2000. In case we need to conduct additional analyses, such as Collective Labour Agreement (if applicable) or 30% ruling conditions, additional fees apply. Please note all our fees are ex VAT.
The regular monthly fees, paid each month, include the following components:
- Salary
- Holiday payment
- Obligatory Employer’s contribution
- Monthly fee
- Pension (if applicable)
- Any other remuneration if agreed, e.g. relocation remuneration, travel allowance etc.
We invoice the cost of salary and our fees for two months in advance.
Yes, the minimum duration of our payrolling contract is 3 months and the maximum duration is 1 year (with extension possibilities). We draw up 2 contracts (service contract between Employor and Client and a payroll agreement between Employor and employee, which are linked to each other). Please note that due to Dutch Labour Law, an employee is entitled to an open-ended contract after 3 temporary contracts at the same employer.
The contract can be terminated in one of the following ways:
- Mutual agreement
- Employee terminates the contract
- During the probationary period
- Contract ends by operation of law
- Through a request at the UWV (lengthy)
- Court proceedings (lengthy)
- Instant dismissal (employee has committed a serious violation).
These are costs which the employer must pay the Dutch government for hiring the employee. The percentages of each component change on an annual basis and are therefore not specified below.
The components of the employer’s contribution are:
- Premie WHK bijdrage werknemer (Return to work fund-contribution of the employee)
- Premie WAO/IVA/WGA basis (basic contributions under the Occupational Disability Insurance Act(WAO)/ Income provision (fully disabled workers) Regulation (IVA)/Partially Disabled Workers Act (WGA)).
- Premie WHK gedifferentieerd (differentiated contributions under the Return to Work Fund (Whk)
- Premie WW-Awf (contributions under the Unemployment Insurance Act/General Unemployment Fund (WW-Awf))
- Zvw werkgeversheffing(employer's Zvw (Dutch Health Insurance Act) health insurance contribution)
A deposit is required in the extraordinary occasion that the contract to be entered is indefinite. The Client will pay Employor a deposit equal to four times the total amount of the Client Rate (as mentioned in the service agreement under Clause 4.1). The Client will pay this deposit before the start of the contract. In the event that the Payroll agreement is terminated by mutual consent or the Employee terminates the Payroll agreement, Employor will refund the deposit to the Client after settlement of any outstanding expenses. Employor invoices in advance per two months; in January, March, May, July, September and November.
Due to the nature of Employor as a payrolling company, we do not offer occupational insurance. This has to do with the fact that Employor has clients from divergent sectors.
This is dependent on various factors. As this is a topic which has undergone recent legislation changes, we have underlined the criteria and the main changes in the following article.
In short, this is possible. However, it is necessary to consult with a pension provider/consultant to check what consequences this will have for the company and the other employees.
Successive term of employment refers to the situation in which the employee enters into a new employment contract with an employer, but the activities, skills, and the job they perform remain the same. In this case, the new employment can be considered successive. There are important legal consequences, when a situation is considered as successive term of employment. This is why it is necessary to always discuss your employment history with Employor.
General
Payroll is a remuneration construction, where the client (company) concludes an employment contract with two parties: the employee and the payroll company. From a legal point of view, the payroll company acts as the employer and as such takes care of all obligatory technical tasks associated with being an employer (drawing up contract, paying salary etc.). However, the recruitment and selection of the employee, negotiation of the labour conditions remains the responsibility of the hirer. The hirer selects the employee and once there is a mutual agreement between the two, a payroll company can employ this employee and second it to the hirer.
Employor will be your legal employer. You will be exclusively seconded to the company (the Client) that has hired you. You will work under the Client’s management and supervision.
The 30% Ruling is a fiscal benefit for highly skilled migrants moving to the Netherlands for a specific employment role. There are strict requirements to apply for the 30% Ruling which Employor can inform you of. More information is available on the website of the Dutch Tax Authority, accessible via this link.
As an extra quality check, all applications we handle must go through an immigration lawyer. In case you do not have an immigration lawyer yet, we can recommend you a list of specialist with whom we work.
As holder of a highly skilled migrant permit, you are the sponsor for your family members. Therefore, their applications do not need a recognized sponsor as the IND considers the holder of the highly skilled migrant permit a sponsor for the family members.
According to Dutch Labor Law, you are entitled for a severance payment in case you are fired or in case your temporary contract is not extended. Further information can be found on this website.
During the onboarding
Employor will draw up the agreement. The employment conditions, salary, working hours etc., are determined by the Client and/or by the applicable Collective Labor Agreement.
The Client determines your salary. If you are going to work as a High Skilled Migrant (HSM) , the salary has to meet the minimum salary required for HSM employees. Also, your salary has to meet all other Dutch Labour Law requirements, about which we will inform the Client.
During the secondment
The salary will be transferred to your account by Employor. Employor will charge the Client the agreed salary and upon receipt of payment, will transfer your salary. You will be provided access to a digital platform where you can find all your salary slips.
Holiday allowance is mandatory in the Netherlands. The percentage of holiday allowance is statutorily determined. The Government has set the holiday allowance at 8%. It is not possible to pay less than the 8%.
In hours, the statutorily required minimum is 4 times the working hours you work per week. Therefore, if you work 40 hours a week, calculated in days, you are entitled to 20 vacation days.
As you will be working under the Client’s supervision, vacation days are consulted directly with the Client. Once the days have been confirmed, these must be communicated to Employor. Employor maintains an overview that must be updated for compliance purposes on a quarterly basis. Please do make sure to communicate the taken vacation days, as this information will be needed to pay out the outstanding holiday balance at the end of your contract/ assignment.
Sick leave
In principle, the statutory regulations on incapacity for work apply. These state that your salary will be paid out to a maximum of 70% for a maximum of 2 years of illness. In the meantime strict regulations for getting back to work (depending on the situation) apply. This can be different when a Collective Labour Agreement is applicable.
You need to report to Employor (as your legal employer) and to the Client. You need to do this at least one hour before the start of work but not later than 9 a.m.