Employment Law Updates for 2026: The Netherlands
The Netherlands is gearing up for a series of major labour law reforms that will bring about changes in the way organizations deal with flexible workers, independent professionals, temporary workers, and permanent contracts. Although several proposals are still pending in the House of Representatives, parts of these reforms are expected to take effect in 2026, followed by additional changes in 2027. It is crucial that employers are aware of this at an early stage and prepare accordingly.
In this blog, we explore the key aspects of these developments and what they mean for employers in everyday practice. We, as Parakar, can support your organization in dealing with these changes, complying with regulations, and translating new requirements into manageable, day-to-day processes.
Changes to labour law for 2026: The Netherlands
The Netherlands is gearing up for a series of major labour law reforms that will bring about changes in the way organizations deal with flexible workers, independent professionals, temporary workers, and permanent contracts.
Although several proposals are still pending in the House of Representatives, parts of these reforms are expected to take effect in 2026, followed by additional changes in 2027. It is crucial that employers are aware of this at an early stage and prepare accordingly.
Higher statutory minimum wage
From January 1, 2026, the statutory minimum hourly wage will be increased for all age categories. This change will have a direct impact on employees who earn the minimum wage or a wage close to the minimum wage. The minimum hourly wage for people in the vocational training program (BBL) will also be increased. Employers who work with interns or apprentices should take this opportunity to review their salary structures and make sure they meet the new thresholds.
Adjustments to statutory benefits
Various statutory benefits, including social assistance and income support schemes for employees (such as unemployment, sickness, disability, and survivor benefits), will be increased from January 2026. Although these benefits are governed by government agencies, employers may notice the impact of these changes in payroll administration, employee inquiries, and HR support during termination procedures or cases of long-term absence.
Abolition of wage cost compensation for older employees
Wage cost compensation for older employees will be eliminated as of January 1, 2026, for employment contracts commencing on or after January 1, 2024. Existing contracts entered into before this date will remain valid. Employers currently using this incentive measure should reassess the conditions and take the change into account in their future staffing plans and cost projections.
Rethinking flexible working: the Flex Work bill
Perhaps the most significant proposal is the Flex Work bill, which was submitted to parliament in May 2025. The bill aims to reduce excessive flexibility in the labour market and promote more secure employment relationships.
A key change is the requirement to extend the mandatory break between chains of temporary contracts from six months to five years, with no possibility of deviating from this through collective bargaining agreements. Zero-hour contracts and on-call contracts would largely disappear, except for students, and employers would be required to offer contracts with a guaranteed minimum number of hours.
Temporary workers will be entitled to the same terms and conditions of employment as comparable employees at the hiring company, and the uncertain temporary phase will be reduced to 52 weeks. While this equal treatment rule is expected to apply from July 1, 2026, similar provisions will already come into effect on January 1, 2026, under the ABU collective bargaining agreement.
To compensate for these restrictions, the bill introduces measures to make permanent contracts more attractive, such as reduced wage obligations during economic downturns, temporary unemployment schemes, and greater flexibility for small employers to replace employees on long-term sick leave. Some elements are expected to take effect in 2026, with others following in 2027.
Clearer boundaries between salaried employment and self-employment
The bill on self-employment aims to provide more clarity in determining whether an employment relationship can be classified as salaried employment or genuine self-employment. Although Dutch legislation already considers work, remuneration, and working “in the service of” another party, the assessment is often complex and case-specific. The new proposal introduces a more structured test, with an emphasis on supervision, organizational control, and whether the person concerned actually works for their own account as an entrepreneur. If the bill is passed, it is expected to come into force on July 1, 2026.
Employers who rely heavily on freelancers, especially in lower-paid or operational positions, should prepare for stricter controls and take proactive measures to limit the risk of misclassification.
Stricter rules for non-compete clauses
Another proposal, the bill on non-compete clauses, aims to significantly restrict the use of non-compete clauses after termination of employment. Under the new rules, non-compete clauses would be limited to one year, would have to be clearly justified and geographically defined, and would have to be formally invoked in writing.
Importantly, employers would also be required to pay compensation equal to 50% of the employee’s last salary during the term of the restriction. Although the exact timing is still uncertain, the measures are expected to be introduced in 2026. Employers should bear in mind that they will need to review their contract models and reassess whether non-compete clauses remain commercially viable.
Preparing for wage transparency requirements
The Netherlands will also implement the EU Pay Transparency Directive, with national legislation expected to come into force at the end of 2026. Employers will be required to state the starting salary or salary range in job advertisements, avoid questions about salary history, and ensure gender-neutral job titles and recruitment processes.
Employees will have more rights to access pay data, and employers with more than 100 employees will be required to report on the gender pay gap. By reviewing remuneration structures and internal pay data at an early stage, employers can smoothly prepare for these transparency obligations.
Changes to the bridging allowance
Finally, a proposal is being considered to limit the government’s contribution to bridging benefits (statutory severance pay) in the event of dismissal due to long-term incapacity for work. If this proposal is adopted, the contribution would be limited to small employers with fewer than 25 employees, meaning that larger organizations would have to bear the full costs themselves.
The bill is still being discussed following advice from the Council of State, and the final outcome remains uncertain. Depending on the decision, employers may face greater financial risks, or the compensation scheme may be abolished altogether.
How Parakar can support
Keeping up with changing labour regulations in the Netherlands can be a challenge, especially for international employers who need to manage growth, cost control, and compliance simultaneously. Parakar offers end-to-end HR solutions to make workforce management in the Netherlands easier and more predictable.
We support fast and compliant recruitment in the Netherlands, allowing you to hire employees without setting up a local entity. From contracts and payroll to social security and compliance, we take care of the administrative and legal details so you can scale up with confidence. For companies with remote teams, we offer specialized HR support in onboarding, payroll, benefits, and ongoing compliance with Dutch labour laws.
Parakar also offers full outsourcing of HR administration and expert advice on complex HR matters, including employee relations and termination. With Parakar as your partner, navigating Dutch labour laws becomes easier, allowing you to focus on growing your business.
Get in touch with Parakar today to ensure your business is fully equipped to handle these important responsibilities, allowing you to focus on what truly matters, supporting your employees.
Contact our consultants to discover how Parakar can help your organization stay ahead of changes in Dutch labour law.
