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Different Types of Employment Contracts
Choosing the right employment contract is not just a legal or HR decision. It directly affects how quickly you can hire, how flexible your organization remains, and which responsibilities you take on as an employer.
A Guide for Employers
Choosing the right employment contract is not just a legal or HR decision. It directly affects how quickly you can hire, how flexible your organization remains, and which responsibilities you take on as an employer. In the Netherlands, employers typically choose between three main types of employment: temporary employment, secondment and permanent employment. Each contract type serves a different purpose, depending on the nature of the role and the level of certainty within your organization. In practice, employers are not only choosing between different types of contract options, but also between different hiring models, each with its own level of flexibility, responsibility and risk. At Undutchables, we support employers in selecting the right type of employment contract based on real business needs, not just theory. This guide explains the differences between the most common employment contracts in the Netherlands and when to choose each option.
Why the Type of Employment Contract Matters
The type of employment contract you choose influences several key aspects of your hiring strategy:
- how quickly you can hire
- how flexible your organization remains
- your legal responsibilities as an employer
- how attractive your offer is to candidates
- your ability to retain talent over time
For this reason, the contract type should be part of your decision-making from the start, not something you define after the recruitment process.
The Main Types of Employment Contracts in the Netherlands
For most employers, three types of employment contracts cover the majority of hiring situations:
- temporary employment
- secondment
- permanent employment
Each type of contract offers a different balance between flexibility, risk and long-term commitment.
Temporary Employment: Speed and Flexibility
Temporary employment is typically the most flexible option. It allows employers to respond quickly to changing business needs without committing to long-term employment.
This type of employment often starts with Phase A of the ABU Phase system. This phase can last up to 52 worked weeks and may include an agency clause, meaning the contract ends when the assignment ends.
When temporary employment makes sense
Temporary employment is often the right choice when:
- you need to hire quickly
- the workload is uncertain or fluctuating
- you need short-term cover, for example during leave or peak periods
- you want flexibility in duration or working hours
- you are exploring whether a role will become structural
What employers should keep in mind
Temporary employment offers flexibility, but it also comes with structure:
- the employee is typically employed by the agency
- flexibility is highest at the start and decreases over time
- employment protection increases as contracts progress
- clear agreements are needed around sickness, pay and continuation
Impact on the employee
For employees, temporary employment provides quick access to work and flexibility, but less long-term security compared to other types of employment.
Secondment: A Structured Middle Ground
Secondment offers a balance between flexibility and continuity. The employee works within your organization but remains employed by the agency, usually for a defined period.
Compared to temporary employment, secondment provides more structure and predictability, while still offering flexibility compared to direct employment.
When secondment makes sense
Secondment is often the best option when:
- you need support for a longer project with a clear timeframe
- you require specific expertise for a defined period
- you want someone embedded in your team without adding to your payroll
- you need continuity without long-term commitment
- you are looking for a balance between flexibility and stability
What employers should keep in mind
With secondment:
- the agency remains the formal employer
- the assignment has a clear start and end date
- flexibility is lower than temporary employment
- employer risks and responsibilities are structured differently
Impact on the employee
Secondment offers more stability than highly flexible temporary work, while still providing variety and project-based experience.
Permanent Employment: Stability and Long-Term Growth
A permanent contract is the most traditional type of employment contract and is typically used for structural roles within an organization. In this model, the employee is directly employed by you, and Dutch employment law fully applies.
When permanent employment makes sense
Permanent employment is usually the best choice when:
- the role is part of your long-term structure
- you want to build continuity within your team
- the employee is expected to grow with the organization
- retention and knowledge transfer are important
- you are hiring for a key or hard-to-fill position
What employers should keep in mind
A permanent contract offers stability, but also requires commitment:
- the employee is on your payroll
- you carry full HR and legal responsibility
- dismissal rules are stricter
- contract chain rules and probation periods apply
Impact on the employee
For employees, a permanent contract provides job security, long-term perspective and stronger conditions for relocation and financial planning.
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How the Different Types of Employment Compare
Each type of employment contract serves a different purpose:
Temporary employment:
- Best for short-term needs, urgent hiring and maximum flexibility
- Trade-off: less stability and changing conditions over time
Secondment:
- Best for project-based work and medium-term continuity
- Trade-off: less flexible than temporary, less permanent than direct employment
Permanent employment:
- Best for structural roles and long-term growth
- Trade-off: least flexibility and higher employer responsibility
Questions to Ask Before Choosing a Contract Type
Before deciding which type of employment contract to use, it helps to ask:
- Is the role temporary, project-based or structural?
- How certain is the need in the next 6 to 12 months?
- Do we want this employee on our payroll?
- How much flexibility do we need?
- Is speed or long-term retention more important?
- What type of contract will attract the right candidate?
The right choice depends on how well the contract reflects the actual needs of the role and your organization.
How Undutchables Supports Employers
Undutchables supports employers across all types of employment contracts in the Netherlands, from temporary employment and secondment to permanent recruitment and executive hiring.
We help you determine which type of contract fits your situation, taking into account market conditions, legal requirements and long-term business goals. By combining recruitment expertise with practical guidance, we ensure that your hiring strategy is both effective and compliant.
Need Help Choosing the Right Contract Option?
Not sure which type of employment contract fits your situation? Share your hiring plans and challenges with us. We will help you choose the right approach and support you throughout the recruitment process.
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