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Dutch Labour Law is Changing, Is Your Business Ready?

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Last updated 07/23/2025

As of January 2025, several important updates to Dutch labour law have come into force — and more are on the horizon. If you’re running a business in the Netherlands, now is the time to get ahead of the changes and make sure your employment practices stay compliant.

Here’s a breakdown of the most relevant updates that could impact your company, your contracts, and your team.

Crackdown on Bogus Self-Employment

The Dutch Tax Administration is once again enforcing rules around false self-employment, targeting situations where workers are labelled as freelancers but the reality looks more like employment.

A grace period applies throughout 2025—no fines yet if you can show you’re working to correct the setup. But make no mistake: enforcement is back, and they’re watching.

If you’re working with freelancers, this is the time to review those contracts and working relationships.

Adjustments to the 30% Ruling

From 1 January 2027, the popular 30% tax-free allowance for expats will shrink to 27%—but only for new employment contracts signed after 1 January 2024.
Here’s how it works:

  • Contracts signed before 1 Jan 2024: 30% benefit remains.
  • Contracts signed after 1 Jan 2024:
    • 30% applies in 2025 and 2026
    • Drops to 27% starting 2027

Make sure your payroll systems and onboarding procedures are aligned with these timelines.

Stricter Income Requirements for Foreign Workers

The IND (Immigration and Naturalisation Service) has introduced higher income thresholds for non-EU/EEA/Swiss workers. If a worker doesn’t meet the criteria, they won’t get the required permit.

This affects both new hires and existing employees—so check your salary structures and ensure continued compliance.

Increased Fines for Illegal Employment

As of 1 February 2025, the Dutch Labour Inspectorate has raised the stakes for non-compliant employers:

  • Fines rise from €8,000 to €11,250 per illegal worker
  • Even higher if misconduct is involved (e.g., passport confiscation, substandard housing)

Hiring foreign workers? Make sure their permits are in order.

What’s Coming: Planned for 2026

Presumption of Employment for Low Hourly Rates

The “Assessment of Employment Relationships and Legal Presumption Act” introduces a new rule:

  • Anyone earning €32.24/hour or less is presumed to be an employee
  • The employer must prove otherwise to avoid a reclassification

This has massive implications for freelancers and platform workers—expect a sharp rise in employment reclassifications unless clear boundaries are in place.

Tighter Rules for Non-Competition Clauses

The draft bill on “Strengthening Non-Competition Clauses” aims to:

  • Limit non-competes to 12 months
  • Require geographic specificity
  • Justify the clause in writing
  • Compensate the employee with 50% of their monthly salary during the non-compete period

The days of boilerplate clauses are over. Start reviewing and rewriting your agreements now.

Overhaul of Flexible Work Contracts

The new Flexible Workers Act proposes a complete revamp:

  • Say goodbye to zero-hour and min-max contracts
  • They’ll be replaced by “basic agreements” that guarantee minimum working hours
  • Restrictions will also be introduced on employee availability outside contracted hours
  • Changes to temporary contracts:
    • New fixed-term contracts can only be offered after 5 years (currently 6 months)

Also in scope: improvements to the rights and protections of temporary agency workers.

What This Means for You

If you employ freelancers, expats, flexible workers, or non-EU talent, you’re affected. Most of these changes require strategic adjustments to contracts, internal policies, HR systems, and long-term hiring strategies.

We’re already advising clients on how to:

  • Reclassify freelance arrangements safely
  • Update employment agreements ahead of the 30% ruling change
  • Mitigate compliance risks with flexible contracts
  • Navigate permit rules and salary benchmarks for foreign employees

Need help navigating the new Dutch labour landscape?
Let’s talk. We’re already guiding clients through the 2025 updates—and preparing them for 2026 and beyond.

Why Choose Bolder Launch

  • Expert Local Knowledge
    Located in the Netherlands, we have in-depth knowledge of Dutch laws, tax systems, and compliance requirements. Everything is handled in-house, so you never have to worry about third-party delays or miscommunications.
  • Focus on Your Core Business
    Let us handle the complex tasks while you focus on growing your organization and driving success.

Conclusion

The evolving Dutch labour law landscape demands proactive attention from employers in 2025. With stricter enforcement on bogus self-employment, changes to tax schemes like the 30% ruling, rising penalties for illegal employment, and upcoming reforms to flexible work contracts and non-compete clauses, the regulatory environment is tightening. These developments reflect a broader push toward greater transparency, fairness, and worker protection in the Netherlands.

To stay compliant and competitive, businesses must not only understand these legal shifts but also anticipate their operational impact. Whether you’re hiring international talent, working with freelancers, or managing flexible contracts, now is the time to assess your internal processes and employment structures. If you need guidance on what these changes mean for your business, Bolder is here to help.

Please contact us at launch@bolderlaunch.com / corporate@bolderlaunch.com or +31 76 230 0011 to learn more about how we can help expand your business in the Netherlands. We are more than happy to assist with guidance!

The publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No presentation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Bolder Business Services (Netherlands) B.V., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in reliance on the information contained in this publication or for any decision based on it.