20 Best Employer of Record in the Netherlands in 2024
Best Netherlands Employer of Record Service Shortlist
Here's my pick of the 10 best software from the 20 tools reviewed.
Get free help from our HR software advisors to find your match.
Are you interested in hiring employees based in the Netherlands, but intimidated by all the legal requirements? Instead of registering a new legal entity with the Dutch Chamber of Commerce (Kamer van Koophandel, or KvK) and the Dutch Tax and Customs Administration (Belastingdienst), I recommend using an Employer of Record (EOR) service in the Netherlands to manage all the employment regulations on your behalf.
A Netherlands-focused EOR service can help you legally hire, manage, and pay employees based in the Netherlands with ease. This way, you can access Dutch talent without having to open a legal entity abroad. Your EOR employees will have local support, and your operations will stay in compliance with the Dutch Labour Authority (Nederlandse Arbeidsinspectie) at all times. Sounds perfect, right? However, which EOR service is the best fit for your needs in the Netherlands?
To help you narrow down your options, I’ve compiled my research into this list of the best Employer of Record services for hiring in the Netherlands.
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Market Details for Hiring in the Netherlands
- Capital City: Amsterdam
- Currency: Euro (€, EUR)
- Payroll Frequency: Monthly
- Official Language: Dutch
- Approx. Population: 17.8 Million
- Public Holidays: 11 days
Why Hire Employees in the Netherlands?
The Netherlands offers a highly educated, multilingual workforce of Dutch professionals, particularly in high-demand sectors such as technology, finance, logistics, and life sciences. Cities like Amsterdam and Eindhoven are renowned for their thriving tech industries, with a strong focus on innovation and research and development.
The Netherlands is also a major hub for financial services, attracting multinational banks and financial institutions. This makes the country a hotspot for industry-specific talent, offering a rich pool of candidates for specialized roles.
What is an Employer of Record in the Netherlands?
An Employer of Record (EOR) in the Netherlands refers to a third-party service that legally employs workers in the Netherlands on behalf of your company. While your organization retains control over these employees’ daily tasks and workloads, the EOR takes on the full legal responsibility for employment. As the legal employer, the EOR assumes full legal responsibility for any new hires. This includes managing payroll, deducting taxes, ensuring compliance with local employment regulations, administering benefits, and handling any other employee-related requirements specific to the Netherlands.
Partnering with an EOR service is beneficial for companies wanting to hire skilled foreign workers or expand their operations into the Netherlands since it simplifies this process considerably. Instead of requiring your HR team to master the Netherlands’s employment laws and regulations, you can delegate these responsibilities to a local EOR in the Netherlands and gain peace of mind that your global operations will be compliant.
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Best Employer of Record in the Netherlands: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in the Netherlands to help you find the best EOR service for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| RemoFirst | From $25/user/month | Website |
| Omnipresent | From $100/employee/month | Website |
| Oyster HR | From $25/employee/month | Website |
| Skuad | From $199/employee/month or $19/contractor/month | Website |
| Remote | From $29/user/month | Website |
| Atlas HXM | From $595/employee/month or $49/contractor/month | Website |
| Rivermate | From $399 EUR/employee/month | Website |
| Horizons | Pricing upon request | Website |
| NNRoad | Pricing upon request | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose an Employer of Record in the Netherlands
An EOR service can solve many different challenges and simplify the process of hiring and managing staff in the Netherlands. To help you figure out which EOR service best fits your business needs, you need to document your specific challenges first.
As you work through your own unique selection process, keep the following points in mind:
- What problem are you trying to solve? Start by identifying the challenges you're trying to overcome, whether that's sourcing staff in the Netherlands who have specific skills, managing compliance with the Netherlands’s employment laws and tax regulations, paying employees in Euros (EUR), or offering health benefits to your Dutch employees.
- Who will benefit from the service? Consider who will manage the EOR relationship (i.e., who will your main contact people be in-house?) and how having an employer of record will improve their day-to-day work tasks.
- What is your budget? To evaluate cost, estimate how many employees you anticipate hiring in the Netherlands. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
- What outcomes are important? Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to hire employees located within a specific province in the Netherlands to allow your staff to collaborate together in person if needed. You could compare service providers until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you could waste a lot of valuable time.
- How it would work within your organization? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Would their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember every business is different — don’t assume that a Netherlands employer of record service will work for your organization just because it's popular.
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Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best Employer of Record Services in the Netherlands
To help you find the best EOR service for hiring employees in the Netherlands, I’ve described my top 10 selections in detail, including the specific services each provider offers and how HR teams can use them effectively. Additionally, I’ve listed 10 more EOR service providers for the Netherlands below if you’d like more options to consider.
Deel is a well-established employer of record platform that helps companies rapidly employ workers in 150+ countries, including the Netherlands.
Deel owns a local entity in the Netherlands staffed with legal experts to keep track of regulatory changes and ensure all legal obligations are met on your behalf. To hire an employee in the Netherlands with Deel, the average onboarding time frame is 2 days.
Why I picked Deel: Deel excels as an EOR service provider in the Netherlands by offering streamlined contract management, ensuring compliance with Dutch employment laws. Deel also helps organizations offer localized employee benefits for Dutch staff, including public and private health insurance, unemployment insurance, and social security contributions.
In addition, Deel has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. These services, all combined, facilitate efficient and compliant hiring processes within the Dutch talent market.
Deel Key Services:
Deel offers end-to-end management for your employees based in the Netherlands, covering everything from hiring and onboarding to termination. Their web app is user-friendly and provides a range of features to help businesses manage their remote teams effectively, including contract management and expense tracking.
Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel for visa and immigration support if you want to relocate existing employees to the Netherlands, with Deel managing the entire visa process for your organization in-house.
Deel offers 24/7 customer support and live chat and is known for its fast support.
Pros and cons
Pros:
- Comprehensive employee benefits
- Local compliance expertise
- Fast onboarding process
Cons:
- No mobile app
- Limited customization options
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build global teams with ease. They offer EOR services in 180+ countries, including the Netherlands, eliminating the need to set up multiple legal entities abroad.
Why I picked Remofirst: For businesses looking to grow their remote teams in the Netherlands, Remofirst stands out as a budget-friendly option. Hiring in the Netherlands involves navigating local labor laws, tax regulations, and compliance requirements. Remofirst ensures that your team members are fully compliant with Dutch employment laws.
Remofirst also has deep local knowledge of Dutch employment benefits and requirements. From handling statutory benefits like holiday pay and social security contributions to managing tax filings, Remofirst ensures that you’re compliant with local laws. By taking care of these administrative tasks, they make it easy to scale your team in the Netherlands without worrying about costly mistakes or compliance issues.
Remofirst Key Services:
Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Dutch regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you allocate equipment to your global employees. Pricing for their EOR services starts at $199/person/month.
Pros and cons
Pros:
- Robust employee support
- User-friendly platform
- Comprehensive compliance management
Cons:
- Service availability may vary by region
- Dependence on third-party providers for some services
Omnipresent helps businesses employ and manage talent worldwide. They operate as an employer of record (EOR), handling the complexities of local employment regulations so you can focus on managing your team without worrying about compliance logistics or setting up a local entity.
Why I picked Omnipresent: In the Netherlands, Omnipresent is an excellent EOR because they handle crucial employment tasks like setting up Dutch-compliant contracts, managing statutory benefits such as healthcare and pension contributions, and ensuring adherence to local labor laws.
They also offer localized support for Dutch employment practices, like payroll management in line with Dutch tax regulations, which can help ensure that your employees are paid accurately and on time. Additionally, Omnipresent provides guidance on any legal requirements related to dismissals and probation periods, which can be particularly complex in the Netherlands.
Omnipresent Key Services:
They also assist with global mobility, which covers visas and work permits, so your international employees can relocate or work remotely without legal issues. They also support your team’s personal and professional growth by handling benefits like paid time off, parental leave, and statutory sick pay, all of which are tailored to local requirements.
Pros and cons
Pros:
- Strong local expertise in employment regulations
- Handles tax compliance across multiple countries
- Easy to manage payroll for global teams in one platform
Cons:
- Service variability across regions
- Slow customer service response times
Oyster HR is a global employment platform designed to help companies hire, pay, and manage talent anywhere in the world. The platform offers a range of services including global contractor management, multi-country payroll, and compliance with local employment laws in over 180 countries.
Why I picked Oyster HR: One of the key features that make Oyster HR a good Netherlands EOR is its ability to manage all aspects of employment, including onboarding, payroll processing, tax compliance, and benefits management. This full-service approach ensures that companies can hire and manage employees in the Netherlands without the typical headaches associated with global employment.
Another significant benefit of using Oyster HR is its deep local intelligence and automated compliance across 180+ countries, including the Netherlands. It also simplifies the complexities of Dutch labor laws, such as the unique vacation payments and navigating the regulations around working hours and overtime.
Oyster HR Key Services:
Notable services include global payroll for paying employees and contractors in multiple countries, ensuring compliance with local laws, and providing detailed payroll reports. The total rewards feature offers competitive global benefits packages, including health insurance and equity, tailored to meet the needs of employees in different countries. Additionally, it offers assistance with visa applications and relocation processes.
Pros and cons
Pros:
- Vast global coverage
- Provides robust compliance support
- Automated tools for hiring and onboarding
Cons:
- The cost can become expensive as more employees are added
- Localized benefits plans are paid add-ons
Skuad’s digital HR platform helps global employers hire, pay, and manage employees in over 160 countries, including the Netherlands. When you hire them as your Dutch EOR partner, they’ll manage the whole hiring process on your behalf, including creating employment agreements and other legal documents.
Why I picked Skuad: As part of their EOR service, Skuad offers remote hiring and can facilitate payroll in multiple currencies. This includes the management of invoices as well as payroll automation. Skuad also offers robust compliance frameworks for local Dutch employment laws, including visa and immigration processes, statutory benefits, and tax obligations.
Skuad Key Services:
Skuad's EOR services include remote employee onboarding, employee benefits, time-off tracking, and managing tax compliance. As part of their global hiring service, they’ll handle all the required documentation on your behalf, including work permits and visas for your new hires and their dependents.
Beyond that, Skuad can also help you distribute computer equipment to your new employees, and track company assets like phones and other IT devices.
Pros and cons
Pros:
- User-friendly platform
- Extensive HR support
- Comprehensive compliance management
Cons:
- Possible delays in customer support response time
- Limited customization options
Remote’s global HR solution offers EOR services that simplify payroll, benefits, taxes, and compliance for international workers. You can use their services to hire full-time employees or contractors and gain local market insights.
Once you’re ready to hire an employee in the Netherlands, Remote can complete their onboarding process within 4 days.
Why I picked Remote: Remote helps companies compete for talent effectively in the global market by lending access to competitive benefits packages. They can help you offer health insurance, dental insurance, vision insurance, disability and life insurance, and mental health support services for your Dutch employees. Remote also doesn’t add any markup to their benefits premiums or administration costs, making them a cost-effective choice.
Remote Key Services:
Services include global payroll processing, intellectual property, and invention rights protection, and benefits packages that are tailored for the Dutch market. Their software platform also covers experience reimbursement and time-off requests, which are quick and easy to approve through their online portal.
Pros and cons
Pros:
- Strong local expertise
- User-friendly platform
- Comprehensive compliance support
Cons:
- High cost per employee
- Limited customization options
Atlas HXM offers innovative companies the tools they need to compete in a global economy. As one of the largest, direct EOR service providers, Atlas HXM believes businesses should be able to employ whomever they want, wherever the talent exists.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Atlas is committed to widening the margins of entrepreneurship and employment alike. As such, their business model helps startups and SMBs compete on the international playing field—turning commercial innovations into viable global enterprises. In doing so, Atlas brings opportunities to local economies and the people who work there.
Atlas HXM Key Services:
Services include Dutch-specific compliance monitoring, employee engagement and productivity monitoring, and guidance on safety programs to minimize business risks.
Their technology platform is supported by international experts who deliver flexible services to companies wanting to expand across borders, including into Europe. Their services can help you onboard talent, manage compliance, and pay your global workforce without requiring a local entity or multiple third-party providers.
Pros and cons
Pros:
- User-friendly platform with localized support
- Comprehensive and customized onboarding
- Extensive local compliance expertise
Cons:
- Initial setup may require significant time and resources
- Limited customization options for specific HR policies
Rivermate provides EOR services in the Netherlands, offering extensive support for companies looking to hire and manage remote employees in the region.
Why I picked Rivermate: Rivermate’s flexible EOR platform simplifies the complexities of hiring and managing employees, ensuring full adherence to Netherlands labor laws and regulations. In addition, their comprehensive support, from onboarding to payroll, makes them a top choice for businesses aiming to establish a presence in the Netherlands without setting up a legal entity.
Rivermate is headquartered in the Netherlands and services a lot of European clients. As a result, their EOR services are priced in Euros.
Rivermate Key Services:
Their services include compliance management, payroll processing, and HR support, ensuring seamless integration into the Dutch talent market. Additionally, Rivermate emphasizes a localized approach, tailoring its services to meet the unique regulatory and cultural nuances of the Netherlands.
Pros and cons
Pros:
- Localized support and market knowledge
- Comprehensive benefits administration
- Strong compliance and regulatory expertise
Cons:
- Reliance on localized expertise might limit scalability
- Limited customization for global operations
Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.
Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.
Their Netherlands-based EOR services are administered by their local experts who are well-versed in the Netherlands’s employment laws, including statutory benefits such as vacation leave, maternity leave, and paternity leave. Their onboarding process for new employees in the Netherlands is also very quick, with a minimum onboarding time of just 12 hours.
Horizons Key Services:
In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in the Netherlands, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on accessing new and emerging markets.
Horizons also provides cultural training and support to help employees integrate seamlessly into their new work environment. This service enhances employee satisfaction and retention by addressing cultural nuances and fostering a positive workplace culture.
Pros and cons
Pros:
- Cultural integration support
- Strong focus on compliance
- Deep knowledge of Netherlands labor laws
Cons:
- Service offerings may vary by region
- Dependence on local partners for some services
NNRoad is a prominent EOR service provider in The Netherlands, offering a wide range of services to facilitate international hiring with an emphasis on tailored solutions to meet the specific needs of companies entering the Dutch market.
Why I picked NNRoad: In addition to NNRoad’s standard EOR capabilities, they are also able to help client companies relocate foreign expats to the Netherlands, as needed. As part of this service, they’ll manage the skilled migrant visa application process to ensure compliance with the Dutch Civil Code and any other industry-specific Collective Labor Agreements.
Each client receives personalized attention from a dedicated account manager, ensuring consistent and responsive support. This personalized service enhances the overall client experience, providing a reliable point of contact for all EOR-related inquiries.
NNRoad Key Services:
NNRoad offers in-depth knowledge of Dutch labor laws and regulations, ensuring that all employment practices are fully compliant. This expertise helps businesses avoid legal pitfalls and maintain smooth operations in the Netherlands.
Their payroll services are adaptable to the specific needs of each client, including handling complex payroll calculations and tax filings. In addition, you can use NNRoad to offer employee benefits, including health insurance, retirement plans, and other perks, to your Dutch EOR employees.
Pros and cons
Pros:
- Dedicated account management
- Comprehensive employee benefits management
- In-depth knowledge of Dutch labor laws
Cons:
- May require time to fully understand unique client needs
- Limited presence outside major Dutch cities
Other Employer of Record Services in the Netherlands
Here are some other EOR service providers in the Netherlands that didn’t make it into my top 10 shortlist, but are still worth considering:
- Mercans
For an advanced EOR management platform
- Velocity Global
For navigating complex regulatory landscapes
- Globalization Partners
EOR service for flexible payment methods
- Multiplier
EOR service for quick employee onboarding
- Foxhire
For hiring healthcare and higher education workers
- Mauve Group
EOR for cultural awareness training
- Gloroots
EOR service for small businesses or startups
- Bradford Jacobs
EOR with resources for future entity formation
- Agility EOR
EOR for affordable fixed-cost pricing
- GoGlobal
For employee support in the local language
Hiring in the Netherlands: Important Details
Here are some key details to note if this is your first time hiring staff located in the Netherlands. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in the Netherlands.
In the Netherlands:
- Employment laws in the Netherlands are set by the Ministry of Social Affairs and Employment (Ministerie van Sociale Zaken en Werkgelegenheid).
- You can hire employees (full-time, part-time, temporary, or seasonal) or independent contractors. Your Dutch EOR provider can help you determine the best employee classification option depending on your needs while proactively preventing potential misclassification issues.
- You can also hire employees using a fixed-term contract with a maximum duration of three years. Employees can only be offered a maximum of three consecutive fixed-term contracts. If the employment relationship extends beyond that timeframe, it automatically converts into a permanent contract.
- The Netherlands has both mandatory payroll deductions and social security contributions that must be collected, including income tax, National Insurance contributions, Employee Insurance contributions, and Health Insurance contributions.
- Dutch is the official language in the Netherlands. However, many professionals also speak and conduct business in English.
- The standard working week in the Netherlands is 40 hours per week over a 5-day work week.
- Overtime is allowed under the Working Hours Act and is calculated by paying additional wages or granting extra time off, typically 1.25 to 1.5 times the regular pay rate, depending on the collective labor agreement.
- Statutory working hours are limited to a maximum of 12 hours per day or 60 hours per week.
- Dutch employees also receive a 13th-month payment (called a holiday allowance), which is mandated at 8% of an employee’s annual salary and is paid in May or June.
- Paid vacation in the Netherlands starts at 20 days of annual leave per year.
- There are 11 national public holidays in the Netherlands for which employees are paid. Understanding and complying with employment norms and legal requirements surrounding Dutch public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.
- National public holidays in the Netherlands include:
- New Year's Day
- Good Friday
- Easter Sunday
- Easter Monday
- King's Day
- Liberation Day
- Ascension Day
- Whit Sunday
- Whit Monday
- Christmas Day
- Boxing Day
- The Netherlands offers maternity leave and paternity leave.
- The maternity leave entitlement is 16 weeks, starting 4 to 6 weeks before the due date.
- The paternity leave entitlement is 1 week of paid leave, followed by an additional 5 weeks of unpaid leave. Employees can also apply for partial compensation from the Social Security system.
- Paid sick leave in the Netherlands is up to 104 weeks (2 years), with at least 70% of the employee's salary paid by the employer, subject to a minimum of the statutory minimum wage and a maximum cap.
- Other leaves in the Netherlands include: leave for adoption, leave for an emergency, and compassionate leave for a short-term illness or long-term care.
- A probationary period is up to 2 months, depending on the duration and nature of the employment contract.
- The termination terms in the Netherlands are mandated by the Dutch Civil Code. The required notice period is between 1 to 4 months, depending on the employee's length of service.
- Severance pay is required and is calculated based on the length of service, known as transition compensation (transitievergoeding), amounting to one-third of the monthly salary for each year of service.
Selection Criteria for Employer of Record the Netherlands
Uncovering the best EOR services for this list required a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.
My approach to choosing the best EOR services is grounded in thorough research into recently published employer of record market data and an understanding of which partnerships would add the most value for organizations hoping to access the global talent market.
Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:
Core Employer of Record Services (25% of total score): To be considered for inclusion in this list, each EOR provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
- The ability to manage cross-border payroll and taxes in compliance with local regulations
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees
- Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements
Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamlined payroll and HR processes while still offering ease of use
- Specialized experience in hiring employees within specific new countries or key industries
- Services that enhance remote work compliance and global mobility needs
- Specialized customer support for complex immigration cases
- Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international HR and payroll
- Their depth of knowledge in local labor laws across multiple jurisdictions
- Their expertise in new markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- The availability of a multilingual support team that covers different time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of the EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
Trends in Employer of Record Services
As more businesses expand across borders, the need for efficient, compliant, and user-friendly solutions for hiring employees abroad, and managing international payments, compliance, benefits, and onboarding has never been more critical. As a result, Employer of Record services have continued to evolve, with an emphasis on technology-driven solutions that offer flexibility, comprehensive support, and innovative features to facilitate global operations.
Here are the most recent trends affecting EOR services and the HR software systems that are used to offer them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent globally.
- AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Oyster HR, Skuad, and Deel.
Key Employer of Record Services
An Employer of Record (EOR) simplifies hiring and compliance in the Netherlands by managing payroll, tax obligations, and labor laws. Key services include:
- Payroll in EUR: Ensures accurate salary payments in compliance with Dutch labor laws, including the Dutch Civil Code (Burgerlijk Wetboek) and collective labor agreements (CAOs), covering wage rates, overtime, and record-keeping to avoid penalties from authorities like the Dutch Tax and Customs Administration (Belastingdienst).
- Tax Compliance and Social Contributions: Handles income tax (Loonheffing) and mandatory social security contributions such as health insurance, pension (Algemene Ouderdomswet, AOW), and unemployment insurance (Werkloosheidswet, WW), ensuring adherence to Dutch tax regulations and the social security system.
- Labor Law Compliance: Provides expertise on Dutch labor regulations, ensuring compliance with working hours, overtime, paid leave, and termination procedures in accordance with the Dutch Labor Code, reducing legal risks and ensuring alignment with both domestic and international employment laws.
- Talent Acquisition and Background Checks: Conducts industry-specific credential verification and background checks to ensure new hires meet Dutch legal standards and professional certifications.
- Visa and Work Permits: Assists with securing the necessary visas and work permits for non-EU employees, ensuring compliance with the Immigration and Naturalisation Service (IND) and Dutch employment laws.
- Onboarding and Offboarding: Manages compliant onboarding and terminations in line with Dutch labor laws, ensuring proper execution of termination processes, severance pay calculation (Transitievergoeding), and notice periods.
- Benefits Administration: Provides competitive benefits packages, including health insurance (Zorgverzekering), pension contributions, transportation allowances, and meal vouchers, tailored to the Dutch labor market.
- HR Support: Offers ongoing consultation on Dutch employment laws, workplace safety regulations (Arbowet), and compliance with mandatory employee-related documentation, such as payroll and personnel records.
- Risk Management and Insurance: Oversees workers' compensation and ensures compliance with local insurance requirements, such as health insurance and disability insurance, to mitigate legal and financial risks.
- Multi-Language Support: Facilitates communication with the Netherlands' diverse workforce through translation and localization of employment contracts, legal documents, and HR materials.
Benefits of an Employer of Record Service
EOR services are a savvy option for organizations looking to expand their global footprint without the complexities and liabilities associated with international employment laws and practices. For companies contemplating global expansion, understanding the benefits of partnering with an EOR can provide the clarity and confidence you need to move forward.
Here are several benefits you’ll gain by using an EOR service:
- Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
- Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
- Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
- Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
- Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Understanding the benefits of using an EOR service is crucial for strategic planning and operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.
Need a stronger case for upper management to choose an EOR? Point out the costs of hiring foreign workers and how an EOR simplifies the international recruitment process.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services in the Netherlands cost between $599 to $2,000 per employee, per month.
Alternatively, some EOR services in the Netherlands charge a percentage of the employee’s salary, ranging between 15% to 18%.
Key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models. If you'd like to delve deeper into the different factors that influence prices, my article explaining the intricacies of different EOR pricing factors is a natural next step.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
FAQs about EOR Services in the Netherlands
If you’ve got specific questions about the requirements to hire Dutch employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
What are the minimum wage requirements in the Netherlands?
The minimum wage in the Netherlands is determined by age and is adjusted every six months, on January 1st and July 1st. As of January 2024, the minimum hourly wage for full-time employees aged 21 and over is €13.27/hour, which works out to approximately €1,995 per month.
For the most current and detailed information, refer to the Government of the Netherlands website.
Which legal body manages unemployment benefits in the Netherlands?
In the Netherlands, the UWV (which stands for Uitvoeringsinstituut Werknemersverzekeringen or the Employee Insurance Agency in English) is responsible for administering employee insurance benefits, such as unemployment benefits, sickness benefits, and disability benefits.
For more information on specific social programs within the Netherlands, visit the official UWV website.
Do EOR providers offer other types of global HR services?
Yes, many service providers in this space also offer professional employer organization services (also known as PEO services), as well as cross-border payroll services.
PEO services are a way of outsourcing your human resource functions to support your international teams. PEO companies can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
Using cross-border payroll services, you can efficiently compensate remote workers and freelancers in a single payroll cycle that spans multiple currencies. They also manage in-country compliance and tax requirements on your behalf, making the entire payroll process easier.
To dive even deeper into this topic, read our article covering other types of global HR services to figure out the best fit for you.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
To brush up on your compliance best practices, have a quick read through our 2024 HR Compliance Guide.
Are there any risks to using an Employer of Record service?
In the world of business, nothing is ever 100% risk-free, and that is true for EOR services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:
Financial risks:
- Hidden costs and service fees: Some EOR providers may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
- Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
- Currency fluctuations: Exchange fluctuations can impact the cost of payroll and other financial transactions as the strength of a currency you’re using goes up or down.
Operational risks:
- Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.
Strategic risks:
- Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
- Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.
For a deeper dive into this topic, read our comprehensive guide to EOR risks, including strategies to mitigate each potential issue upfront.
Gain Access to the Best Talent with an EOR in the Netherlands
If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Dutch employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in the Netherlands, or a small business or startup trying to break into the Dutch talent marketplace without launching your own entity.
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