Compliance Reset: 8 Key HR Reforms Dutch Employers Must Prepare for by 2026

By 2026, the rules of the workplace in the Netherlands are changing, and they’re changing in a big way. From pay transparency and contractor classification to temporary work regulations and sustainability standards, these reforms touch every corner of HR. Employers who wait risk fines, audits, and reputational damage. Those who prepare early have an opportunity to lead, with fairer workplaces, more transparent pay, and smarter, sustainable operations.
Even the way organizations use AI in HR practices will need careful consideration. Adaptation will require time, focus, and strategy, but the rewards are worth it: a workforce that is treated fairly, compliance that’s airtight, and a company positioned to thrive.
The impact will be felt across all sectors, from SMEs with fluctuating workforces to multinational groups and staffing firms. Larger employers and temp agencies face added reporting and transparency obligations, making proactive preparation essential. By taking action now, Dutch employers can not only meet these legal requirements but also demonstrate leadership, integrity, and a commitment to a fair and sustainable workplace.
1. Freelancer classification & the VBAR law
The Netherlands is entering a new era of accountability on freelancer misclassification. After years of soft enforcement, the rules now have real consequences. With the DBA moratorium lifted in 2025 and penalties coming in 2026, misclassification is no longer theoretical, it’s a real financial and reputational risk for any organisation using freelancers.
VBAR brings clarity with a simple two-step test: first, is the worker truly independent or working under the organisation’s direction? Then, do they show genuine entrepreneurship, financial risk, multiple clients, their own tools and branding? The goal is fairness and transparency for both workers and employers.
A key change is the presumption of employment for freelancers earning under roughly €36 per hour. It doesn’t make everyone an automatic employee, but it gives lower-paid contractors a stronger position when questioning their status. This is the moment to prepare, not months from now, not after an audit letter arrives. Right now. Practical steps include:
- Mapping all your freelancer and ZZP engagements and identifying the roles that carry the most risk—long-term assignments, fixed hours, lower rates, or deep integration in the organisation.
- Updating contracts and statements of work so they reflect VBAR’s criteria and accurately describe entrepreneurial features where they truly exist.
- Redesigning high-risk roles, turning them into clear employment contracts or reshaping them into genuinely independent assignments with real autonomy, appropriate rates, and entrepreneurial structure.
- Creating a consistent internal framework so every new freelance engagement is assessed carefully and fairly.
- Communicating early with your freelancers, so no one is surprised and everyone has time to prepare before full enforcement begins in 2026.
This shift isn’t just about compliance. It’s about clarity, fairness, and building workplaces where people (employees and freelancers alike) know where they stand and can do their best work.
2. EU Pay Transparency Directive
The EU Pay Transparency Directive is one of the most meaningful steps Europe has taken to close the gender pay gap. Beginning in 2026, employers in the Netherlands will need to bring real openness into how they hire, evaluate, and pay people. This isn’t just about compliance, it’s about building workplaces where fairness isn’t promised, but practiced.
Key requirements at a glance
| Area | What Changes | Why It Matters |
| Recruitment Transparency | Salary ranges must appear in job ads; employers may not ask candidates about salary history. | Ensures candidates start on equal footing and prevents past discrimination from carrying forward. |
| Pay Structure & Job Evaluation | Employers (especially 150+ employees) must create gender-neutral, objective pay frameworks and classify jobs of equal value. | Builds consistency and fairness into every pay decision. |
| Reporting Obligations | 150+ employee companies report first (2028); 100–149 employee companies follow (2030). | Brings accountability and visibility to gender pay gaps. |
| Non-Compliance Consequences | Employees can claim uncapped compensation; authorities may issue fines up to €10,300; burden of proof rests with employers. | Raising the stakes—fair, defensible pay policies are essential. |
What employers should prepare in 2025–2026
- Audit current pay practices to identify early gaps.
- Create or refine job evaluation frameworks with works councils or employee representatives.
- Build transparent salary bands for each job family and use them consistently.
- Set up reliable systems to collect, analyze, and report pay data.
- Train HR and recruiters on salary transparency and the ban on salary-history questions.
- Communicate clearly with employees and candidates to build trust and reduce uncertainty.
The directive marks a turning point for workplace equality. With early preparation, employers can not only meet the rules but also strengthen fairness, trust, and retention, every step toward transparency is a step toward a better workplace.
3. Equal pay for agency & temporary workers (2026 CLA)
Essential (must be equal): Pay, paid holidays, social security contributions.Equivalent (can be comparable): Training access, work schedules, meal arrangements, travel allowances.
| Clause | Description | Key Details |
| 1. Equal Total Compensation | Agencies must ensure agency workers receive the same total pay as permanent staff in equivalent roles. | Covers base salary, bonuses, holiday allowance, reimbursements, variable pay, and financial benefits. |
| 2. Essential vs. Equivalent Conditions | Defines which employment conditions must be strictly equal and which can remain comparable. | Essential (must be equal): Pay, paid holidays, social security contributions. Equivalent (can be comparable): Training access, work schedules, meal arrangements, travel allowances. |
| 3. Impact on Agencies & Hiring Companies | The reform changes operational, payroll, and compliance obligations for both parties. | Agencies must revise pay scales, benefits, and bonus schemes — possible cost increases. Hiring companies must ensure temps receive equal treatment onsite. |
| 4. Why This Matters | Strengthens fairness and equal opportunities in the temporary work sector. | Aligns with EU trends for fair treatment. Early adopters can improve attraction & retention of temporary workers. |
4. Abolition of zero-hour contracts
The Netherlands will abolish zero-hour contracts starting in 2026, a major labor reform designed to provide more predictable and secure employment for flexible workers while balancing employer needs. The changes introduce minimum guaranteed hours, limit variability in working hours, and will have a significant impact on HR operations.
- HR & Operational Impact: Employers must review and update contracts, adjust workforce planning, communicate changes clearly, and update payroll/HR systems. The reform may increase fixed labor costs but promotes fair, transparent, and equitable employment practices.
- Contract Changes: Zero-hour contracts will be banned, employment agreements must specify minimum hours, and min-max contracts will be allowed only if maximum hours do not exceed 130% of the minimum. On-call work without minimum hours is limited to students, minors, and certain temporary agency workers in their first year.
- Implementation Timeline: Key measures take effect January 1, 2026, while stricter rules on on-call work and temporary agency scheduling are delayed until January 1, 2027 to allow employers time to adjust.
5. Extended break between temporary contracts
Starting in 2026, Dutch labor law will extend the mandatory break between consecutive temporary contracts from six months to five years.
- This reform aims to prevent the repeated chaining of fixed-term contracts to avoid creating permanent employment relationships, encouraging employers to offer long-term, stable contracts for roles requiring continuity. The change is designed to reduce precarious employment, ensuring that temporary workers are not caught in a cycle of short-term assignments and promoting fairer, more secure working conditions.
- Exceptions to the five-year rule will remain for seasonal work and student or pupil contracts, preserving flexibility for industries with intermittent or seasonal labor needs.
- The reform will have major implications for workforce planning, requiring employers to reassess the long-term necessity of temporary roles, monitor contract histories, and plan transitions to permanent employment proactively.
6. Minimum wage increase (2026)
From 1 January 2026, the minimum hourly wage for workers aged 21+ will rise to €14.71 gross per hour.
- A 36-hour week equals approximately €2,294.40 gross per month.
- Employers must ensure all hourly, part-time, and on-call workers meet or exceed the new rate.
Key employer actions:
- Update employment contracts, salary scales, and payroll software.
- Recalculate overtime, supplements, and allowances based on the new hourly minimum.
- Check that monthly fixed salaries comply with the underlying minimum hourly rate.
Youth minimum wage (2026):
- Still age-based, calculated as a percentage of the adult minimum.
- Example: 20-year-olds ≈ 80% of the adult rate (approx. €11.77/hr).
- Employers with student-heavy workforces must monitor age transitions to avoid underpayment.
7. EU AI Act: Employment-Related Obligations
Many HR technologies (CV screeners, candidate ranking tools, performance assessment systems, and monitoring software) will be classified as “high-risk» AI, triggering strict compliance duties.
High-risk HR AI systems must include:
- Strong human oversight with documented review processes.
- Clear risk management, data governance, and transparency.
- Worker/ applicant notification whenever AI supports decisions (e.g., hiring, promotion, dismissal).
- Clear explanations of decision logic and the option for human review.
Implementation window: 2025–mid-2026
Employers should:
- Inventory all AI tools used in HR and classify their risk level.
- Assess whether vendors meet the Act’s documentation and transparency requirements.
- Update HR & data governance policies.
- Train HR teams on oversight responsibilities.
- Conduct legal and technical compliance audits before August 2026.
8. Disability & labour cost compensation changes
Transition Payment Compensation Limited to Small Employers
From 1 July 2026, the Dutch transition payment compensation after two years of illness will apply only to small employers. Organisations with 25 or more employees will no longer receive reimbursement and must fully budget for transition payments when ending contracts after long-term incapacity. This significantly raises disability-related cost exposure and requires updated financial planning.
Phasing Out LKV for Older Workers (56+)
The labour cost compensation (LKV) scheme for older workers is being phased out. From 1 January 2026, employers can no longer claim LKV for older employees hired on or after 1 January 2024, and the incentive will be abolished except for transitional protection for hires before 2024. This removes a financial stimulus that previously helped offset higher wage costs for older workers.
Strengthened LKV for Workers with an Occupational Disability
In contrast, the LKV for workers with an occupational disability is being expanded. Employers will be able to receive LKV for the entire duration of employment, instead of the previous three-year limit, and some administrative steps will be simplified. Companies that exceed their Participation Act quota may also receive a higher LKV bonus, making inclusive hiring more financially attractive.
What Employers Need to Prepare
These shifts require more precise workforce and budget planning. Employers should update disability-related financial provisions, reassess hiring strategies for older versus disabled workers, and take full advantage of the expanded LKV incentive for occupational disability hires ahead of mid-2026.
Preparing today for a fairer, stronger 2026
The year 2026 will redefine the HR and compliance panorama in the Netherlands. These changes aren’t just legal obligations; they are opportunities to build fairer workplaces, strengthen trust, and future-proof your people strategy.
But preparation cannot wait. Companies that take action now, by auditing their HR systems, updating contracts and policies, redesigning workforce models, and building transparent pay and compliance frameworks; they will enter 2026 with confidence instead of scrambling under pressure.
If you want expert guidance through these reforms, theHRchapter is here to help. We support organisations of all sizes in navigating Dutch and EU HR regulations, designing compliant systems, and transforming these obligations into strategic advantages. Get in touch with theHRchapter to prepare your organisation for 2026: stronger, compliant, and ready for the future of work.
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