Benelux: What are the formal requirements for an employment contract?

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Netherlands

Under Dutch law there are no formal requirements for an employment agreement; it can be entered into in writing or orally. However, for certain provisions (e.g. probation period, non-competition clause, amendment clause or penalty clause) it is necessary to put them in writing. An employer is also obliged to provide the employee with a written or electronic statement of certain particulars of the terms of employment within one month of commencing employment. As a minimum, this should include:

• specific aspects regarding the employment if the employee will be working outside the Netherlands for more than one month,
• whether the employment agreement is with an agency or not,
• name and address of the parties,
• place of work,
• position or the nature of the work,
• commencement date,
• duration of the contract,
• holiday entitlement,
• notice period,
• salary,
• working hours,
• pension scheme (if any),
• applicable collective bargaining agreement (if any).

Belgium

Under Belgian law, in principle, there is no legal obligation for an employment agreement to be in writing. Consequently, an agreement for an indefinite duration starts when the employee begins work. It would be advisable for all relevant work regulations and policies to be provided to the employee. In addition it is necessary to ensure that the employee is registered with the social security database, work accident insurer, any other fringe benefit service provider and payroll service provider.

Luxembourg

According to Luxembourg labour law, an employment relationship must be evidenced in writing, must contain certain implied terms and should be entered into no later than the date of the first day of work. The Labour Code further requires the employment agreement to include the following elements:

• identity of the parties,
• starting date of the contract,
• place of work,
• nature of work,
• daily or weekly working hours,
• normal working hours,
• salary,
• holidays,
• notice period,
• trial period (if applicable),
• derogatory or complementary clauses,
• applicable collective agreements (if any),
• supplementary pension scheme (if any).

However, the absence of a written document does not necessarily affect the existence of the employment contract as an employee who has been hired without one can always prove an employment relationship exists before the Labour court.  The absence of a written contract may create a number of uncertainties regarding the details of the working relationship, and where challenged the burden of proof with respect to the terms and conditions of employment will fall on the employer.

Further Information

For further information or to discuss any of the issues raised, please contact Rina Driece on +31 10 224 64 24  at Loyens & Loeff, Netherlands. Disclaimer Content is for general information purposes only.  The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice.  If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances.  In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article.  For further legal information see our legal page. Circular 230 disclosure To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Copying If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.