U.S. Employers in the Netherlands Could Be Walking Into Legal Traps - Industry Experts Warn

AMSTERDAM - August 12, 2025 - As the number of American citizens living and working in the Netherlands reaches an estimated 47,000 this year, labor law specialists are warning that U.S. companies could be facing unexpected and costly legal risks. According to EmployerLegal, a Netherlands-based employment law firm advising international businesses, recent changes in Dutch legislation have raised the stakes for compliance.

Why this matters now Recent changes in Dutch legislation are increasing the pressure on employers. The long-standing enforcement pause on the Wet DBA ended on January 1, 2025. Since then, the Dutch Tax Authority has been able to impose immediate corrections and retroactive tax assessments, going back no further than January 1, 2025. Only in cases of bad faith or failure to follow prior instructions can the look-back period be extended further. In 2025, no fines will generally be imposed, except in situations involving bad faith.

These changes come on top of the Netherlands' already employee-friendly laws. As a result, American companies operating here face a steep compliance learning curve.

"In the U.S., at-will employment is the norm. In the Netherlands, dismissals must follow a legal process, include proper notice, and often involve substantial severance," said Claire van Zanen employment law specialist at EmployerLegal. "We've seen companies run into serious trouble simply because they assumed their U.S. policies would work here."

Under Dutch law, employees have strong protections regarding termination, working hours, paid leave, and benefits. Many workplace rules are also dictated by collective labor agreements (CAOs), which can override company handbooks and standard U.S. policies.

Trends U.S. companies should be aware of

Steady growth in the American expat population in the Netherlands over the past decade

Increased inspections and penalties for labor law violations in 2025

Greater scrutiny of cross-border employment arrangements

Recommendations for U.S. employers

Review all Dutch employment contracts before assignments begin

Ensure correct classification of employees and contractors

Obtain necessary work permits before deployment

Align U.S. HR policies with Dutch collective agreements and statutory rights

About EmployerLegal

EmployerLegal [https://www.employerlegal.nl/en/] is a Netherlands-based law firm specializing in employment law and HR compliance for international companies. We focus on three core areas: termination and reorganization, illness and reintegration, and conflicts and underperformance, providing practical and legally sound solutions that protect your business and maintain strong working relationships.

Media Contact
Company Name: EmployerLegal
Contact Person: Thijs Bakker
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=us-employers-in-the-netherlands-could-be-walking-into-legal-traps-industry-experts-warn]
Phone: +31 88 205 1735
Country: Netherlands
Website: https://www.employerlegal.nl/en/

Legal Disclaimer: Information contained on this page is provided by an independent third-party content provider. ABNewswire makes no warranties or responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you are affiliated with this article or have any complaints or copyright issues related to this article and would like it to be removed, please contact retract@swscontact.com



This release was published on openPR.