Hiring Your First Employee in Europe
HR for European startup companies
Looking for HR solutions for startups? Looking to bring your first employee on board? An HR consultant for startups can help you understand the legal & tax requirements of hiring staff in Europe so you don’t hit any rough waters down the line.
Are you a start-up and looking for answers on:
- Legal requirements?
- How to recruit and hire your first employee?
- Benefits & insurance planning & maintenance?
- Set up of payroll services?
Europe HR Solutions offers consulting for startups that can provide you with answers and guidance as you start, build, and grow your business.
Recruit personnel initially in the EEA:
You are obliged to recruit personnel initially in the European Economic Area (EEA) and/or Switzerland. Only if you prove that you cannot find suitable personnel here, you will be permitted to recruit from other countries.
Verify and register the identity of your employees
You are obliged to verify the identity of all workers on the basis of an original identity document when they join your company. You must keep a copy of the identity documents in your records.
Apply for a work permit (if needed)
If you employ someone who is not from the EEA or Switzerland or who comes from Romania or Bulgaria, you must apply for a work permit from the Public Employment Service.
Register as an employer with the Tax Administration
If you are employing personnel for the first time, you must register as an employer with the Tax and Customs Administration. You will then receive the necessary forms to meet your payroll tax obligations.
Ask your employees for a tax and social insurance number
Foreign employees who do not have a citizen service number must provide you with a tax and social insurance number. They themselves must apply to the Tax and Customs Administration for this number.
Enter into a contract of employment
In a contract of employment, you specify the employee’s salary, indicate whether a Collective Labour Agreement applies, outline working hours and rest times, and indicate whether you arrange an employee pension scheme.
Pay at least the minimum wage and holiday allowance
Everyone working in the Netherlands is entitled to the statutory minimum wage and a holiday allowance. This also applies to temporary workers, flex workers and foreign personnel.
Provide healthy and safe working conditions
As an employer, you must ensure a healthy and safe workplace for all your personnel. The Labor Inspectorate or your sector organization can provide you with information about the rules.
Draw up a risk inventory and evaluation
Once you employ personnel, you are obliged to draw up a risk inventory and evaluation (RI&E) in which you state the risks faced by personnel and the measures you have in place to address these risks.
Check whether you are required to deduct social insurance premiums
You must deduct social insurance premiums for employees who work permanently in the Netherlands. You can choose to become a self-insurer for the occupational disability insurance scheme.
Obligations regarding reporting and documentation
Regular statistical reporting duties related to employment; Special obligation regarding information and documentation; Obligation to maintain a personal register; Obligation to inform employees of the conditions applicable to the contract or employment relationship
Obligations in case of a dismissal
Regular obligation to justify dismissal; Obligation to pay compensation in case of a dismissal for economic reasons; Observation of a specified notification period for the dismissal during the probationary period
Other obligations part of employment handbooks
Special obligations regarding the calculation and registration of the working time (in addition to what is necessary for business reasons); Special obligations regarding the calculation and registration of holidays; Obligation to join a certain organization / association when becoming an employer.
Download this free human resources E-Book
This E-Book is about the HR guidelines for a Startup in Europe.