Best Employment Benefits & Executive Compensation Lawyers in Ommen

About Employment Benefits & Executive Compensation Law in Ommen, Netherlands

Employment benefits and executive compensation in Ommen follow national Dutch law. Ommen is part of the province of Overijssel, but the rules that govern pay, benefits, pensions, incentives and termination are set at the national level and by any applicable collective labor agreement known as a cao. This area of law blends the Dutch Civil Code, labor regulations, pensions law, tax and social security rules, corporate governance and, in certain sectors, financial supervision rules. Whether you are a professional employee, a senior manager or a statutory director of a Dutch BV or NV, your contract terms, incentive plans and any changes to benefits are shaped by these rules and by the involvement of works councils and trade unions where present.

Typical benefits in the Netherlands include salary, 8 percent holiday allowance, statutory vacation and leave entitlements, sick pay protections, pension schemes, expense reimbursements, mobility allowances and sometimes a 13th month or performance bonus. Executive compensation may add short and long term incentive plans, equity awards, non-compete arrangements, change of control protection and tailored tax planning such as the 30 percent ruling for qualifying inbound employees.

This guide offers an overview for people in Ommen who are unfamiliar with the field and need practical direction. It is general information and not legal advice for your specific situation.

Why You May Need a Lawyer

You may need legal support when negotiating an employment or executive service agreement, especially for variable pay and equity. Clear drafting is crucial for bonus criteria, vesting, leaver provisions, malus and clawback clauses, garden leave, notice and post-contractual restraints such as non-compete and non-solicitation obligations.

Employees often seek advice when bonuses or commissions are withheld, holiday allowance or pay is miscalculated, sick pay is reduced, or when duties and pay are unilaterally changed. Disputes also arise over classification as employee versus contractor, or when options and RSUs are forfeited at termination.

Executives and statutory directors face issues specific to board-level roles, including dismissal mechanics without prior approval, severance design, governance approval of remuneration, WNT pay caps in the public and semi-public sector, bonus caps in the financial sector and interaction with shareholder or supervisory board decisions.

Employers and founders consult counsel to design compliant remuneration policies, implement or amend pension schemes, secure works council consent on benefits, navigate reorganizations or collective redundancies, apply the Wet verbetering poortwachter reintegration duties during illness, and implement equity plans and payroll withholding for options or shares.

Cross-border moves and expatriate packages require coordinated employment and tax advice, including eligibility for the 30 percent ruling, social security coverage and equity award taxation at exercise or tradability.

Local Laws Overview

Contracts and cao. Dutch employment contracts must state core terms such as job title, pay, work location, hours and benefits. Many sectors in or around Ommen are covered by a cao that supplements statutory rights and often improves sick pay, overtime rules and pension contributions. If a cao applies, its mandatory provisions override conflicting individual terms.

Pay, minimum wage and holiday allowance. The statutory minimum wage is adjusted twice a year. Most employees receive at least 8 percent holiday allowance calculated over base wage and certain supplements, typically paid in May or spread monthly. A 13th month is common but not mandatory unless agreed or required by a cao.

Working time and leave. The Working Hours Act and Working Conditions Act regulate working time, rest and health and safety. Statutory vacation is at least four times the agreed weekly working hours per year, plus any additional cao or contractual days. There are generous family and care leave schemes, including paid birth partner leave and partially paid parental leave administered by UWV.

Sickness and reintegration. Employers generally pay at least 70 percent of wages for up to 104 weeks of illness. Higher percentages may apply under a cao or contract. Both employer and employee have strict reintegration duties under the Wet verbetering poortwachter. Dismissal during the first 104 weeks of illness is heavily restricted.

Pensions. Most employees participate in a pension scheme under the Pensions Act. The Future of Pensions Act modernizes the system with a transition to new contribution based designs and a transition period running through the coming years. Changes to a pension plan usually require works council consent and careful communication.

Executive pay and governance. In listed companies, remuneration policy and reporting follow the Dutch Corporate Governance Code and Book 2 of the Civil Code. Financial sector employers face a statutory bonus cap, with limited exceptions, and malus and clawback requirements under financial supervision rules. Public and semi-public institutions are subject to the WNT which caps top remuneration and severance.

Works council involvement. Employers with at least 50 employees must have a works council. Under the Works Councils Act, changes to many employee benefits, pension arrangements, performance appraisal systems and working time policies require prior consent of the works council. Smaller employers may have an employee representative body.

Termination and severance. Termination generally requires a reasonable ground and either UWV approval or a court order, except for probation, summary dismissal or mutual agreement. On termination not due to serious employee fault, the employee is entitled to a statutory transition payment from day one of employment, calculated pro rata and capped at a statutory maximum that is adjusted annually. Additional fair compensation may be awarded in cases of serious employer fault. Collective redundancies trigger WMCO notification to unions and UWV and consultation duties.

Statutory directors. Termination of a statutory director by shareholders usually ends the employment relationship without UWV or court approval, though the director can still claim the transition payment and may challenge the decision in limited circumstances. Contract terms and articles of association matter.

Non-compete and business protection. Non-compete clauses in indefinite contracts are allowed subject to reasonableness. In fixed-term contracts, a non-compete is valid only with a written, specific justification of compelling business interests. Confidentiality and non-solicitation clauses are common. Legislative reforms are under discussion and may tighten non-compete use, so check the current status before agreeing.

Equity and tax. Employers must operate Dutch wage tax and social security on cash bonuses and most benefits in kind. Since 2023, the default taxation of employee stock options occurs when the underlying shares become tradeable, with an option to be taxed at exercise. The 30 percent ruling can make part of the salary tax free for qualifying inbound employees, subject to salary thresholds, caps and time limits. Data protection rules apply when monitoring performance or processing compensation data.

Equal treatment and pay. Dutch equal treatment laws prohibit discrimination in pay and benefits on protected grounds. EU level pay transparency rules are being implemented and will increase employer obligations around pay reporting and transparency.

Frequently Asked Questions

What benefits are mandatory in the Netherlands?

Mandatory elements include at least the statutory minimum wage, 8 percent holiday allowance, minimum vacation entitlement, sick pay protections, social security coverage and adherence to applicable cao provisions. Pension participation is often mandatory through an industry wide fund or company plan where required by law or cao.

Is a 13th month or performance bonus required?

No. A 13th month or bonus is not required by law. They are due only if agreed in the contract, policy or applicable cao. If bonuses are discretionary, they still must be applied reasonably and without unlawful discrimination.

Can my employer change my benefits or bonus plan unilaterally?

Significant changes usually require your consent, works council consent where applicable and sometimes adherence to cao procedures. An employer may rely on a written unilateral change clause only in limited circumstances and subject to a strict reasonableness test. Pension changes almost always require works council consent.

How is sick pay handled and for how long?

Employers generally must pay at least 70 percent of wages for up to 104 weeks of illness, subject to reintegration duties by both parties. Many cao agreements improve this to a higher percentage for part of that period. Dismissal during the first 104 weeks is restricted.

How is the statutory transition payment calculated?

The transition payment accrues from the first day of employment. The general formula is one third of one monthly salary per full year of service, with pro rata for partial years, and a statutory maximum that is updated annually or one year salary if lower or higher depending on the applicable cap. Additional fair compensation may be awarded in exceptional cases of serious employer fault.

Are non-compete clauses enforceable?

In indefinite contracts, non-competes are permitted but must be reasonable in scope, duration and geography. In fixed-term contracts, a non-compete is valid only with a written and specific justification of compelling business interests. Courts can limit or nullify excessive restraints. Monitor possible legislative changes.

What happens to my bonus or equity if I leave?

This depends on the contract, plan rules and the reason for leaving. Good leavers may retain or prorate awards, while bad leavers may forfeit. Dutch law also allows malus and clawback in certain cases, especially in listed and financial sector companies. Clear drafting and timely advice are important when negotiating or exiting.

Do statutory directors have the same dismissal protection as employees?

Statutory directors of a BV or NV can be removed by a shareholders resolution, which typically also ends the employment contract. They are generally entitled to the transition payment and can challenge the decision in limited cases, but the usual prior approval route via UWV or court does not apply.

How are employee stock options taxed in the Netherlands?

Under the current regime, taxation generally occurs when the shares from exercised options become tradeable. Employees can opt for taxation at exercise instead. Employers must withhold wage tax and social security where applicable. The specific timing and valuation can be complex, so plan ahead before grant and before exit events.

What is the 30 percent ruling and can it be part of my package?

The 30 percent ruling allows qualifying inbound employees to receive a portion of salary tax free for a limited period, subject to salary thresholds, caps and phasing rules. It can materially affect net pay and benefit structuring. Eligibility and application must be assessed with current Belastingdienst guidance.

Additional Resources

Employee Insurance Agency UWV for benefits, reintegration and dismissal routes. Netherlands Labour Authority Nederlandse Arbeidsinspectie for working conditions and enforcement. Social and Economic Council SER for works council guidance. Belastingdienst for wage tax, social security and the 30 percent ruling. De Nederlandsche Bank and the Authority for the Financial Markets for pension and financial sector remuneration oversight. College voor de Rechten van de Mens for equal treatment questions. Trade unions such as FNV and CNV for cao information. Kantongerecht subdistrict courts for employment disputes. Kamer van Koophandel for corporate and director information. Municipality of Ommen for local business support and permits.

Next Steps

Map your situation. Write down your objectives, the issues you face and any deadlines such as bonus determination dates, notice periods, option vesting or termination meetings. In case of illness, keep a record of reintegration steps.

Collect documents. Gather your contract and any addenda, staff handbook, bonus or commission plans, equity award agreements, pension plan summaries, performance reviews, emails about changes to benefits, pay slips and relevant cao texts.

Check which cao applies. If your sector in or around Ommen is covered by a cao, its rules may determine pay scales, sick pay, overtime, leave and pension contributions.

Assess works council involvement. If your employer has 50 or more employees, changes to benefits and pensions may require works council consent. This can affect timing and strategy.

Consider tax implications. For executives and mobile employees, model the impact of the 30 percent ruling, stock option taxation and social security coverage before signing or exiting.

Consult a lawyer. Contact an employment lawyer who handles benefits and executive compensation in the Overijssel region. Ask for a focused review of your documents, risks and options, and a strategy for negotiation or dispute resolution.

Negotiate or formalize. Seek written agreements on bonus metrics, equity vesting, references, releases, post-contractual restrictions and severance. Ensure payroll and tax treatment are addressed. For employers, document the business rationale for any fixed-term non-compete and secure necessary consents.

Follow up. Monitor payments such as holiday allowance, bonus payouts, transition payment, UWV reimbursements and pension enrollment. Keep copies of all final agreements and confirmations.

This guide is general information. Because facts and laws change, get advice tailored to your circumstances before taking action.