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Doing Business in the Netherlands 2012 - American Chamber of ...

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14 Labor Law<br />

14.1 Term<br />

<strong>Do<strong>in</strong>g</strong> <strong>Bus<strong>in</strong>ess</strong> <strong>in</strong> <strong>the</strong> Ne<strong>the</strong>rlands <strong>2012</strong><br />

An employment contract may be concluded verbally or <strong>in</strong> writ<strong>in</strong>g. A<br />

written contract may take <strong>the</strong> form <strong>of</strong> an agreement or a letter signed<br />

by both parties. In ei<strong>the</strong>r case, <strong>the</strong> employer is obligated to <strong>in</strong>form <strong>the</strong><br />

employee <strong>in</strong> writ<strong>in</strong>g <strong>of</strong> <strong>the</strong> conditions applicable to his/her<br />

employment. The <strong>in</strong>formation to be provided by <strong>the</strong> employer is<br />

based on statutory law and must <strong>in</strong>clude – amongst o<strong>the</strong>rs – <strong>the</strong><br />

follow<strong>in</strong>g:<br />

� <strong>the</strong> parties’ identities and places <strong>of</strong> residence;<br />

� <strong>the</strong> place <strong>of</strong> work;<br />

� <strong>the</strong> position <strong>of</strong> <strong>the</strong> employee or <strong>the</strong> nature <strong>of</strong> his work;<br />

� <strong>the</strong> length <strong>of</strong> <strong>the</strong> employee’s normal work<strong>in</strong>g day or week;<br />

� <strong>the</strong> <strong>in</strong>itial base salary and any o<strong>the</strong>r pay components, holidays<br />

and <strong>the</strong> applicable notice period; and<br />

� whe<strong>the</strong>r a pension arrangement is <strong>in</strong> place.<br />

An employment contract may be concluded for an <strong>in</strong>def<strong>in</strong>ite term, for<br />

a specified term (“a fixed-term contract”), or for a specific task or<br />

project. If no term or specific task or project is specified, <strong>the</strong> contract<br />

will be considered to be concluded for an <strong>in</strong>def<strong>in</strong>ite term.<br />

14.1.1 Probationary Period<br />

Parties to an employment contract may agree on an <strong>in</strong>itial<br />

probationary period <strong>in</strong> writ<strong>in</strong>g only. The statutory maximum<br />

probationary period for an <strong>in</strong>def<strong>in</strong>ite-term employment contract is two<br />

months. For a fixed-term employment contract, a one month<br />

probationary period is allowed, if <strong>the</strong> employment contract is entered<br />

<strong>in</strong>to for a period <strong>of</strong> less than two years. A two-month probationary<br />

Baker & McKenzie 119

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