Hiring staff for the first time: what must you arrange as an employer?
From entrepreneur to employer
Hiring your first employee is an exciting step for your business. At the same time, quite a lot changes legally. As an employer, you face rules and obligations that you may previously have had little reason to consider as an entrepreneur.
An employment contract is important, but there is more involved. Where should you begin?
1. First check whether a collective labour agreement applies
Before agreeing employment conditions with your employee, it is important to know whether your business is covered by a collective labour agreement (collectieve arbeidsovereenkomst, cao).
A cao does not apply only to employers who concluded it themselves. Even if you are not a party to it, a cao may apply to your business, for example if it has been declared generally binding for your sector.
A cao may contain rules on salary, working hours, holiday entitlement, allowances, pension, and other employment conditions. These arrangements determine the conditions you can offer your employee.
Do not therefore start by drafting the employment contract, but by asking: which employment conditions apply to my employee?
2. Record the arrangements in an employment contract
Once it is clear which employment conditions apply, they can be translated into an employment contract that fits your business and the role.
A sound employment contract records more than salary and job title. Other arrangements, such as working hours, holiday entitlement, incapacity for work, and any additional employment conditions, also belong in it.
As an employer, you are also required to inform your employee in writing about certain employment conditions.
The employment contract should therefore be tailored to your business and any applicable cao.
3. Arrange your administration as an employer
Your first employee also brings various administrative obligations.
You must register as an employer with the Dutch Tax and Customs Administration (Belastingdienst), then file payroll tax returns and maintain payroll records, among other things.
You must also verify your employee's identity before their first working day. Please note that a driving licence is not sufficient for this purpose.
For identity verification, you must inspect an original, valid identity document belonging to your employee, such as a passport, identity card, or residence document, and retain a copy in your records.
It may seem a small detail, but it is an obligation that you must not overlook as an employer.
4. Know what is expected of you during employment
Your obligations do not end once the employment contract has been signed. As an employer, you face various rules throughout the employment relationship.
These concern matters including payment of salary, holiday, illness, leave, and working conditions. Specific obligations may also follow from the cao that applies to your business.
It is therefore important not only to be well prepared for the first working day, but also to know what your responsibilities as an employer will be afterwards.
5. A first employee requires careful preparation
Hiring your first employee involves more than having an employment contract signed. You must first determine which employment conditions apply, record the appropriate arrangements, and put your employer obligations in place.
Good preparation helps prevent you, as a new employer, from discovering legal obligations only when something goes wrong.
At Legal Comfort, I help entrepreneurs hire their first employee. I advise on the applicable cao, draft employment contracts, and consider your obligations as an employer with you.
Hiring staff for the first time? Please get in touch for a no-obligation discussion. I will be happy to help you make the transition from entrepreneur to employer well prepared.