Benelux (Holland)
Employment Legislation
The important aspect of Employment Legislation in Holland is that
up until a period of three months of employment there is a minimum
notice period required of 2 days.
The effect of this law is to only allow 3 months for you to be
satisfied with your employee, after which it can be extremely difficult
to dismiss him/her, unless it is for a serious matter. It should
be noted that the unions control all of the employment legislation
in Holland, and union representation is mandatory for companies
that employ over 50 people. Companies that employ less than 50 staff
have less restrictive Employment legislation and many fixed term,
renewable contracts are negotiated between employees and employer
to avoid the protection issues.
After the period of 3 months the employee has substantial job protection
The way some companies handle this is to employ all staff on a
fixed 1 year contract to be renewed each year. Also the commission
is set up in such a way so that 50% of sales = only 20% of commission.
In other words if sales people/managers are not successful, they
will want out!
Availability of Qualified Staff
Holland is one of the most difficult places in Europe to hire and
retain qualified staff, it has some of the severest shortages of
experienced and trained individuals. This shortage of staff generates
such a wide choice to employees, that loyalty and longevity is affected
and is generally lower than in the rest of Europe.
It is generally understood that a Bachelors degree in Holland is
more easily attainable than in Germany and France and is therefore
not as valuable. We cannot verify this.
Cost of employment
For budgetary purposes the figure one should expect to have to
add to the employers salary is 35% to substantiate the overall employment
cost.
This is mostly made up of a contribution to the state of up to
17% + Private health is mandatory on all employees over c. $30,000
pa.
Dutch executives will be used to and will expect a fully expensed
company car. There is little or no benefit for the employee in having
a car allowance.
Language and cultural factors
The Netherlands can boast at a business and executive level, nearly
every citizen having an excellent understanding and command of English
and German. The linguistic skills of the Dutch (in particular the
working knowledge of English) as a language is highly attractive
for Pan European employment.
Travel and Communication
Realistically the 4 potential Locations for any IT Business In
Holland, are; Amsterdam - The capital Rotterdam, The Hague and Eindhoven.
Holland is comparatively inexpensive for commercial property and
has very good links to all major towns and cities. It borders Belgium,
Germany and the Nordic region. Holland is well geographically located
for a European Headquarters. The major IT players in Holland tend
not to stick to one particular region and are quite well spread
out . Here is an example list of major software companies and there
relative locations in Holland:
Oracle-Deneern,
Informix-Amsterdam,
BMC-Nieuwegein,
CAI: Nieuwegein
HP:Amstelveen
Compuware-Amsterdam,
IBM-Amsterdam Eindhoven Amersoort AJ Leusden,.
Sybase-Maarssen,
Microsoft-Amsterdam
Misc
One of the key advantages of having a HQ in Holland is that the
taxation system allows you to offset losses from other European
Offices. This is often the single most important reason why US Technology
companies with large expansion plans select Holland as an administrative
HQ.
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