The Netherlands: Summary of important changes in employment law from 1 January 2019

Mandatory discussion of directors’ salary with the works council

In 2018 a legislative amendment has been adopted providing the works council (WC) with more influence on the salary of directors. A management board of companies employing at least 100 persons has a mandatory obligation to discuss the remuneration of directors with the WC. The legislative amendment came into force as of 1 January 2019.

Introduction of extra parental leave

As of 1 January 2019, partners will have 5 days parental leave on full pay after the birth of their child (based on fulltime employment). The partners can take this leave immediately but also spread it over the first four weeks after the birth. From 1 July 2020 onwards, partners can take another five weeks of parental leave during the first half year after the birth, the partners being entitled to benefit amounting to 70% of the (maximum) day wage.

30% ruling

The 30% reimbursement ruling makes it possible to grant a foreign employee who has come from abroad a tax-free allowance of a maximum of 30% of the taxable wage. From 1 January 2019 the term of the 30% ruling has been reduced from eight to five years. There is a transitional arrangement for 30% rulings already issued.