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The year 2027 brings changes to employment and labour laws in the Netherlands, with implications for employer obligations, employee rights and day-to-day HR practices. Understanding these developments supports organisations to plan ahead, review their policies and prepare for changes to employment arrangements and payroll processes.
For employers, management and HR professionals, this article outlines the Dutch employment law changes for 2027, alongside proposed legislation that may affect future decisions. It explains what is changing, when the measures are expected to apply and which actions employers in the Netherlands should consider.
AT A GLANCE
Applicable Dutch Labour Law Changes 2027
Statutory Minimum Wage Netherlands
Status: Applicable.
Date: January 1, and July 1, 2027.
The statutory minimum wage has been EUR 14.99 gross per hour since 1 July 2026. The rate applicable from January 1, 2027 remains subject to official publication; to be expected November 2026.
Minimum wage per July 1, 2027: to be released in 2027.
Employer actions: Update employment contracts and payroll processes in case currently the statutory minimum wage is paid, to reflect the new wage levels for employees.
Find more information: Government of the Netherlands Minimum Wage Amounts. and New Government 2027 Minimum Wage.
Pension Transition and Possible Compensation
Status: Applicable pension legislation; implementation depends on the pension arrangement.
Dates: Transition plans for pension arrangements administered by insurers or premium pension institutions must be submitted by October 1, 2027. The overall transition deadline is January 1, 2028.
The Future Pensions Act [Wet toekomst pensioenen] changes the Dutch pension system. During 2027, employers whose arrangements have not yet transitioned must complete the necessary preparations with their pension provider and employee representatives.
The transition may disadvantage particular groups of employees, including some employees in their forties and fifties. Compensation depends on the pension arrangement and the agreed transition plan. There is no universal entitlement to a one-time pension boost, and the amount, timing and form of compensation vary by arrangement.
Employer action: Confirm the transition timetable with the pension provider or adviser. Review the transition plan, any compensation arrangements and employee communications. Identify the applicable employee consultation, Works Council consent and individual agreement requirements before implementing changes.
Find more information here: Netherlands Pension System: The Future Pensions Act.
EU AI Act: High-Risk AI in Recruitment and Employee Management
Status: Adopted EU regulation, with phased application.
Date: December 2, 2027 for requirements concerning qualifying high-risk AI systems listed in Annex III, subject to applicable transitional provisions.
The EU AI Act [Regulation (EU) 2024/1689] establishes requirements for developing, supplying and using AI systems. Certain systems used to screen job applications, assess candidates, allocate tasks or monitor and evaluate employees may qualify as high-risk. Classification depends on the system’s intended purpose and the applicable legal criteria.
The December 2027 date does not postpone obligations already applicable, including AI literacy requirements and prohibitions on specified AI practices.
Employer action: Identify AI systems used in recruitment and employee management. Assess their classification, obtain relevant supplier documentation and assign responsibility for oversight. Review staff training, data protection and applicable employee information and consultation requirements.
Find more information here: EU Artificial Intelligence Act: Scope and Requirements.
Expat Scheme: Adjustment 30% Facility
Status: Applicable, subject to individual eligibility and transitional rules.
Date: In 2027, the 30% ruling will decrease to 27%, a maximum tax-free allowance.
The Dutch government has reversed the previously introduced phased reduction of the tax-free allowance under the 30% facility, also known as the expat scheme or 30 percent ruling conditions.
Employees who used the scheme before 2024 generally retain the 30% maximum and the existing salary threshold framework for their remaining entitlement. Employees who first used the scheme in 2024 generally move to 27% from 2027 but retain the existing salary threshold framework. Employees who first used the scheme from 2025 are subject to the 27% maximum and higher salary thresholds from 2027. Salary thresholds remain subject to annual indexation.
Key actions: Review each employee’s start date under the scheme, remaining entitlement and applicable transitional arrangements before updating payroll or communicating changes.
Mileage Allowance 2027
Status: Applicable.
Date: January 1, 2027.
The maximum tax-free mileage allowance for 2027 is EUR 0.25 per kilometre tax-free.
Employer action: Review the travel policy, employment agreements and supporting mileage records. Qualifying mileage reimbursements within the applicable limit fall under a targeted exemption within the work-related costs scheme and do not use the discretionary budge
For more information read our article here: 2027 Mileage Allowance in the Netherlands.
Employer Levy on Fossil-Fuel Company Cars
Status: Adopted tax measure, applicable from 2027, subject to transitional arrangements.
Date: January 1, 2027.
Employers will face an additional payroll tax levy [pseudo-eindheffing] for covered fossil-fuel passenger cars first made available to employees from 2027 for private use, including commuting.
The annual levy is 12% of the car’s catalogue value. It is an employer charge, separate from the employee’s existing company-car benefit taxation [bijtelling]. Transitional arrangements apply to cars already made available before 2027.
Employer action: Review company-car policies, fleet replacement plans and lease commitments. Establish which vehicles fall within scope, check transitional protection and include the additional employer cost in budgets.
Equivalent Employment Conditions Temporary Agency Workers
Status: Adopted Dutch legislation with a confirmed commencement date.
Date: December 31, 2026.
Under the More Security for Flexible Workers Act [Wet meer zekerheid flexwerkers], temporary agency workers must receive at least equivalent employment conditions to comparable workers employed directly by the hiring organisation. Relevant collective labour agreement arrangements may already affect the position before the statutory start date.
Employer action: Review secondment/agency arrangements and provide accurate information about relevant employment conditions. Confirm how equivalence is assessed and implemented with the agency.
Presumption of Employment for Self-Employed Workers: ZZP
Status: Adopted legislation.
Date: December 31, 2026.
The law introducing a presumption of employment based on an hourly rate [Wet invoering rechtsvermoeden van arbeidsovereenkomst op basis van een uurtarief] strengthens the position of lower-paid workers engaged as self-employed contractors [zzp’ers].
Workers earning at or below the applicable statutory hourly threshold can invoke a legal presumption that they work under an employment contract. The organisation engaging them must then rebut that presumption by demonstrating that the relationship is not an employment relationship.
Employer action: Review self-employed contractor arrangements, particularly those at or below the applicable threshold. Assess how the work is performed in practice and address potential misclassification rather than relying solely on contractual labels or increasing the hourly rate.
Admission System for Labour Suppliers: Wtta
Status: Adopted legislation, with phased implementation.
Dates: January 1, 2027 for commencement; enforcement of the admission requirement from 2028.
The Labour Supply Admission Act [Wet toelating terbeschikkingstelling van arbeidskrachten, Wtta] introduces an admission system for businesses supplying workers to other organisations. Its scope extends beyond traditional temporary employment agencies.
Labour suppliers wishing to use the transitional arrangements must register with the Nederlandse Autoriteit Uitleenmarkt [NAU] before 1 January 2027. From 2028, suppliers operating without the required admission risk penalties. Hiring organisations can also be penalised for using suppliers without admission.
Employer action: Establish whether your organisation supplies or hires workers within scope. Suppliers should check registration and admission requirements. Hiring organisations should review their suppliers’ admission status and update procurement checks.
Changes to Labour Hiring Rules: Waadi
Status: Adopted legislation.
Date: January 1, 2027.
Amendments to the Placement of Personnel by Intermediaries Act [Wet allocatie arbeidskrachten door intermediairs, Waadi] introduce additional responsibilities for organisations hiring supplied workers.
The prohibition on supplying replacement workers during a strike will also apply directly to hiring organisations. Hirers must also inform labour suppliers promptly about changes to relevant employment conditions during an assignment.
Employer action: Review arrangements with labour suppliers. Establish a process for communicating changes to employment conditions and ensure managers understand the restrictions on using supplied workers during strikes.
EU Cyber Resilience Act: Security Requirements Digital Products
Status: Adopted EU regulation, directly applicable in the Netherlands, with phased application.
Dates: Reporting obligations apply from September 11, 2026. The main requirements apply from December 11, 2027, subject to transitional provisions.
The Cyber Resilience Act [Regulation (EU) 2024/2847] introduces cybersecurity requirements for covered hardware and software products made available on the EU market. It establishes obligations for manufacturers, importers and distributors, including requirements concerning product security, vulnerability handling and conformity assessment.
Manufacturers must report actively exploited vulnerabilities and severe incidents affecting the security of covered products. These reporting obligations already apply from September 2026.
The regulation is separate from NIS2 and the Dutch Cybersecurity Act. It concerns digital-product security rather than general employment rights. Organisations that only purchase or use covered products do not automatically acquire manufacturers’ obligations.
Employer action: Establish whether the organisation manufactures, imports or distributes covered products. Assign compliance responsibilities and identify any implications for staff training, internal reporting procedures and coordination between product, IT, legal and HR teams.
Employee Discounts on Company Products Abolition (Status Pending)
Status: Proposed, subject to parliamentary approval.
Target date: January 1, 2027.
The government proposes abolishing the targeted tax exemption for employee discounts on company products. The existing exemption permits qualifying discounts of up to 20% of market value, capped at EUR 500 per employee per calendar year.
If adopted, employers could continue offering discounts and designate qualifying benefits within the WKR discretionary budget, subject to the usual conditions. Where total designated benefits exceed that budget, the employer pays 80% final levy on the excess. The proposal changes the tax treatment; it does not prohibit employee discounts.
Employer action: Assess the additional use of the WKR budget and review payroll processing.
More information: WKR Netherlands: Tax-Free Employee Benefits and Allowances.
Transition Payment Compensation: Proposed Abolition (Status Pending)
Status: Proposed, subject to parliamentary approval.
Target date: The commencement date remains unconfirmed, target date January 1, 2028, postponed from 2027.
Employers who terminate employment because of long-term incapacity for work are currently eligible to apply for UWV compensation of the statutory transition payment, subject to the applicable conditions.
The government’s planned abolition of transition-payment compensation has been postponed from 2027 to a target date of 1 January 2028, subject to completion of the legislative process.
More information can be found here: Transition Payment Compensation: Proposed Abolition.
CSRD Reporting EU: Mandatory Reporting on Corporate Sustainability (Status Pending)
Status: EU amendments adopted; Dutch implementation and commencement arrangements pending.
Starting 2024, large public-interest entities with more than 500 employees, including listed companies, banks and insurance undertakings, were required to report under CSRD. Companies were originally expected to publish their first CSRD report in 2026, covering the 2025 financial year. This reporting timetable has since been postponed, and the EU has narrowed the scope.
Under the amended EU framework in February 2026, reporting principally applies now to organisations that meet both of the following two criteria:
- more than 1,000 employees;
- net annual turnover exceeding EUR 450 million.
Dutch legislation is still being finalised to implement the CSRD and the amended EU rules.
The revised thresholds apply from the 2027 financial year, with reports published in 2028. Dutch legislation implementing these changes is still being finalised, including the treatment of companies that fall outside the revised scope for financial years 2025 and 2026.
EU Pay Transparency Directive Netherlands (Status Pending)
Status: Pending Dutch legislation, commencement date to be confirmed.
The Dutch government intends the implementing legislation to take effect on January 1, 2027, subject to completion of the legislative process. This is later than the EU transposition deadline June 7, 2026.
Read more about the Netherlands Delays EU Pay Transparency Directive or about the EU Pay Transparency Directive (EU) 2023/970.
Proposed Employment Law Changes without Confirmed Commencement Dates
While these proposals below are not yet confirmed, these bills may or may not come into effect as the date still unknown, pending approval by the Dutch First and Second Chamber.
Sick Leave Obligations Second Year: Replacement Employee: Effective Date of Law Unknown
A proposal would give small and medium-sized employers flexibility during the second year of employee sickness by focusing entirely on re-integration with a different employer (Track 2). Employers would no longer be required to hold the employee’s original role open. The 104-week wage payment obligation remains unchanged.
Mandatory Confidential Advisor: Effective Date of Law Unknown
The proposal concerns access to a Confidential Counsellor [vertrouwenspersoon] for unwanted workplace behaviour. Employers must distinguish the proposed appointment requirement from existing responsibilities to address psychosocial workload and provide a safe working environment. Companies with ten or more employees may be required to appoint mandatory Confidential Counsellor.
More information can be found here: Mandatory Confidential Counsellor in the Netherlands.
Mandatory Bereavement Leave: Effective Date of Law Unknown
The Netherlands has no general statutory provision for bereavement leave. Only a limited number of Collective Labour Agreements (CLA) address this issue and companies (not covered by a CLA) might refer in their Employee Handbook to Special Leave.
The proposed Bereavement Leave Act [Wet invoering rouwverlof] would establish paid leave for specified bereavement situations in families with minor children. The parliamentary summary describes at least five working days where the relevant conditions are met. It is narrower than a general entitlement following every death of a partner or child.
Mandatory Code of Conduct: Effective Date of Law Unknown
The proposal would require employers to introduce a code addressing unwanted behaviour such as bullying, sexual harassment, discrimination, aggression and violence. Employers with ten or more employees would be required to adopt a Code of Conduct addressing undesirable behaviour in the workplace. Undesirable behaviour includes, but is not limited to, bullying, sexual harassment, discrimination, aggression, or violence committed by colleagues or supervisors.
Non-Compete Clauses: Effective Date in Dutch Civil Code Unknown
Proposal is aimed to limit non-compete clauses by restricting the duration (only 1 year after termination of employment) and geographical scope. Employers would need to justify non-compete provisions in indefinite contracts based on a compelling business interest and provide compensation to employees adhering to such clauses.
Company Doctor’s Advice in UWV Reintegration Assessment: Date of Law Unknown
The proposal would make the company doctor’s medical advice leading in UWV’s assessment of an employer’s reintegration efforts after two years of employee sickness. It aims to give employers greater certainty when following that advice.
This would not remove the employer’s reintegration obligations or prevent UWV from assessing whether sufficient reintegration efforts were made. It is a separate proposal from the reform concerning second-year reintegration with another employer.
Employment Law Changes 2028
Zero-Hours Contracts Banned in 2028
Status: Applicable.
Date: January 1, 2028.
Zero-hour employment contracts [nulurencontracten] are not allowed by law starting January 1, 2028. The Dutch government is abolishing contractual arrangements that allow employers to set working hours at zero, thereby effectively creating on-call employment relationships without guaranteed working hours.
As a result of this legislative change, employers would be required to include a minimum number of guaranteed working hours in employment contracts. Under that employment contract, a minimum and a maximum number of working hours are agreed in advance.
Key action: Zero-hour or similar on-call contracts must be amended in new contractual arrangements prior to the statutory implementation deadline. Employees who perform work on a regular and recurring basis would be entitled to employment contracts that accurately reflect their actual and structural working patterns.
Amendments to Fixed-Term Employment Contract Rules in 2028
Status: Applicable.
Date: January 1, 2028.
The waiting period for starting a new chain of fixed-term contracts will increase from six months to three years. For example, after three temporary fixed term employment contracts, the employer may only offer a new temporary contract after a three-year waiting period instead of the current six months.
Human in Progress will update this article frequently as further developments are confirmed.
More Information
- 2027 Mileage Allowance in the Netherlands.
- Compensation Transition Payment Netherlands Abolition.
- Mandatory Confidential Counsellor in the Netherlands.
- CSRD Reporting EU: Mandatory Reporting on Corporate Sustainability.
- WKR Netherlands: Insights Tax-Free Employee Benefits & Allowances.
- Gain Understanding of the EU Pay Transparency Directive.
- EU Law Tracker 2027: Updates, Application Dates and Actions.
To review the Dutch employment law changes of last year 2026, please read our article here: Employment Law Changes Netherlands 2026.
