Dutch Employment Law Outlook 2026

1. From tolerance to enforcement: worker misclassification

Relevant legislation and policy

• Wet op de loonbelasting (Wage Tax Act)
• Dutch social security legislation
• Enforcement policy of the Dutch Tax Authorities (Belastingdienst)
• Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden (Wet VBAR)

What is changing

The Dutch Tax Authorities have extended the so-called “soft landing” period for enforcement on worker misclassification until 1 January 2027.

During 2026:

• no standard penalties will be imposed for misclassification;
• company visits and assessments of actual working practices will continue;
• penalties remain possible in cases of intent or gross negligence;
• retroactive payroll tax and social security corrections may still be imposed for periods starting 1 January 2025.

In parallel, the Wet VBAR, expected to enter into force in July 2026, will codify existing Dutch case law and introduce a legal presumption of employee status for workers earning less than €36 per hour.

Why this matters

The extension should be seen as time to prepare, not a safe harbour. Enforcement will intensify once the Wet VBAR enters into force.

Concrete employer actions

• Review all contractor and freelancer arrangements.
• Align contractual terms with operational reality.
• Identify high-risk roles and engagement models.
• Prepare documentation for potential audits.

2. Higher wage floors and allowances

Relevant legislation

• Wet minimumloon en minimumvakantiebijslag (WML)
• Wet op de loonbelasting

Effective 1 January 2026

• Statutory minimum hourly wage (21+): €14.71 gross
• Maximum tax-free remote work allowance (thuiswerkvergoeding): €2.45 per day

Why this matters

Overtime pay, shift premiums and irregular-hours allowances are often linked to the statutory minimum wage, resulting in a broader payroll impact.

Concrete employer actions

• Review payroll calculations and automatic uplifts.
• Update employment contracts and HR policies.
• Assess cost exposure for lower-wage and shift-based populations.

3. Reduced flexibility through agency work and secondment

Relevant legislation and regulation

• CAO voor Uitzendkrachten (Collective Labour Agreement for Temporary Agency Workers)
• Wet allocatie arbeidskrachten door intermediairs (Waadi)
• Anticipated Wet meer zekerheid voor flexwerkers

What is changing

As of 1 January 2026, a new CLA applies to temporary agency workers. The total employment conditions of agency workers must be at least equivalent in value to those of comparable employees directly employed by the hirer. Pension arrangements for agency workers have also been amended.

Why this matters

This significantly limits the economic flexibility traditionally associated with agency work and increases compliance exposure for hiring companies.

Concrete employer actions

• Reassess the business case for agency labour.
• Review agreements with staffing and secondment providers.
• Document parity assessments and internal benchmarking.

4. Abolition of wage cost advantage for older employees

Relevant legislation

• Dutch tax legislation on loonkostenvoordelen

What is changing

As of 1 January 2026, the wage cost advantage for employees aged 56 and older will be abolished. Transitional rules apply only to employees hired before 1 January 2024.

Concrete employer actions

• Reassess workforce cost planning.
• Factor changes into recruitment and retention strategies.

5. Key legislative developments shaping 2026

A. EU Pay Transparency Directive — Dutch implementation

Relevant legislation

• Wet gelijke behandeling van mannen en vrouwen (Wgb)
• Wet op de ondernemingsraden (WOR)
• Wet allocatie arbeidskrachten door intermediairs (Waadi)

Status

The Dutch implementation bill is currently under debate in the Senate and is expected to enter into force by June 2026.

Employer focus

• Pay transparency governance and reporting.
• Data readiness and internal consistency.
• Works Council consultation processes.

B. Wet VBAR — Assessment of employment relationships

Status

Expected entry into force July 2026.

Key elements

• Codification of Dutch case law on employment relationships.
• Legal presumption of employee status below €36 per hour.

C. Limitation of compensation for transition allowance after long-term illness

Relevant legislation

• Wet beperking compensatieregeling transitievergoeding bij ontslag wegens langdurige arbeidsongeschiktheid

What is changing

Compensation of statutory transition allowances following dismissal after two years of illness will generally remain available only to small employers.

D. Modernisation of the non-compete clause

Relevant legislation

• Draft Wet modernisering concurrentiebeding

Proposed measures

• Maximum duration of 12 months.
• Mandatory geographic scope.
• Written justification of business interests.
• 50% salary compensation during enforcement.

E. Crisis Personnel Retention Act

Relevant legislation

• Wetsvoorstel Personeelsbehoud bij Crisis (WPC)

Purpose

To enable temporary wage subsidies, redeployment and reduced working hours during crises such as pandemics, armed conflict or extreme weather events.

6. Long-term sickness and extended UWV decision period

Relevant legislation

• Wet werk en inkomen naar arbeidsvermogen (WIA)

What is changing

As of 1 January 2026, the UWV decision period for WIA applications is extended from 8 to 16 weeks, primarily due to capacity shortages.

Why this matters

• Longer periods of uncertainty.
• Continued obligation to submit complete reintegration files.
• Potential cash-flow and planning implications.

Concrete employer actions

• Adjust workforce and financial planning.
• Review sickness case management processes.
• Ensure reintegration documentation is complete and defensible.

Key employer priorities for early 2026

1. Conduct a contractor and workforce risk assessment.
2. Review wage, allowance and sickness-related cost exposure.
3. Align contracts, policies and operational practice.
4. Prepare for audits and increased regulatory scrutiny.
5. Involve HR, Legal and Tax early in strategic workforce decisions.

How we support international employers

The Dutch Employment team of Hogan Lovells Amsterdam regularly advises multinational employers on navigating Dutch employment law — from strategic workforce design and compliance to Works Council processes and dispute management.

We would be pleased to discuss how these developments affect your organisation and how to translate legal change into practical, business-aligned solutions.

Authored by Imane Azdad, Don Collin, Anita de Jong, and Maria Benbrahim.