Employment agreement (indefinite): contract template

Employment agreement (indefinite): contract template

Good to know

  • Intro : The opening paragraph (before Article 1) assumes the Employee is converting from an existing fixed-term contract. Delete it if this is a new indefinite hire instead.
  • Article 1 : The work/residence permit condition (point 2) only applies to Employees who need a permit to work in the Netherlands. Remove it if not relevant.
  • Article 2 : Add links to the Employer's own Code of Conduct and Mission and Vision.
  • Article 4 : We suggest offering between 5 and 10 extra-statutory holiday days as an employer benefit.
  • Other : We left out pension and other employer benefits. Draft these case-by-case, based on what benefits the entity offers as an employer.

Agreement text


PARTIES:
This agreement is made between ORGANIZATION LEGAL NAME, located at ORGANIZATION ADDRESS, the Netherlands, represented by EMPLOYER REPRESENTATIVE NAME, hereinafter referred to as the "Employer", and WORKER NAME, born on WORKER'S DATE OF BIRTH, residing at WORKER'S ADDRESS, hereinafter referred to as the "Employee". The Employer and the Employee hereinafter jointly referred to as "Parties".
Both parties hereby agree to the following terms:
    The Employee has been employed by the Employer on the basis of a fixed term employment contract dated PREVIOUS CONTRACT DATE in the position of PREVIOUS JOB TITLE . Parties now wish to enter into an employment contract for an indefinite period of time on the basis of the following terms and conditions (the "Employment Contract").


Article 1: Duration and Location

    The Employment contract is entered into for an indefinite period of time, with effect from START DATE .
    Parties have entered into this Employment contract under the condition precedent that the Employee must have obtained the required applicable residence and work permits, including visa, to stay and work in the Netherlands (the "Condition Precedent"). The Employment contract shall not have any effect and shall thus not commence if the Employee has not obtained the required permits, in which situation the Employee acknowledges that the Employee cannot derive any rights from this Employment contract. In the event the obtained permits have expired, have been withdrawn and/or become invalid under any circumstances during the employment, (i) the Employee shall immediately inform the Employer in writing, (ii) the Employment contract will automatically end, and (iii) the Employee shall indemnify and hold the Employer harmless from and against any costs, damages, fines, claims, liabilities and or other obligations arising from the expiration, withdrawal and/or the invalidity of any of the permits.
    Termination of this employment agreement is subject to Dutch law, including the statutory notice periods and grounds for dismissal as set out in Article 7:672 BW and related provisions.
    There is no probationary period for this employment agreement unless agreed otherwise in writing.
    The Employee will work X days a week, Monday through Friday, from 9:00 AM to 5:00 PM , totaling X hours per week.
    The Employee shall perform the activities at the Employer's office at ORGANIZATION ADDRESS or such other place as the Employer may instruct. The Employee will work onsite for at least X days per week unless otherwise mutually agreed upon in writing.


Article 2: Duties and responsibilities

    The Employee agrees to perform their duties in accordance with the Employer's Code of Conduct and Mission and Vision .
    The people policies related to reimbursement, absence, privacy etc. as set out on the Employer's internal wiki or policy pages, and amended from time to time, form an integral part of the Employment Contract ("People Policies"). In the event of any conflict or inconsistency between this Employment Contract and the Employer's People Policies, the terms of this Agreement shall prevail.
    The Employee holds the position of JOB TITLE and will carry out the roles associated under the guidance of the designated supervisor.
    The Employee participates in periodic performance reflection and feedback processes, as determined by the organization. These may include peer feedback cycles, sessions with a designated coach or team lead, or other formats. The organization may document performance observations to inform decisions such as role changes.


Article 3: Salary and holiday allowance

    The gross monthly salary (including 8% holiday allowance) amounts to € 0,000.00 , based on full-time employment (40 hours per week), pro-rated to € 0,000.00 for X hours per week.
    Salary and 8% holiday allowance will be paid on a monthly basis via direct deposit to the Employee's provided IBAN until the last day of each calendar month, after statutory and agreed deductions.


Article 4: Time-off

    The Employee is entitled to 20 days of statutory holiday per calendar year, based on full-time employment (40 hours per week), pro-rated to X days for X hours per week.
    The Employee is entitled to an additional X days of extra-statutory holidays per calendar year, based on full-time employment (40 hours per week), pro-rated to X days for X hours per week. These holidays must be used within the calendar year in which they are accrued and expire on 31 December of that year.
    The Employee must take holidays during periods when work allows, and only after consultation with the Employer.
    All accrued holiday time must be taken before the termination of this Employment Agreement unless the Employer determines it is impossible due to operational needs.
    In addition, the following public holidays are recognized as days off provided they fall on a workday for the Employee: Christmas Day, Boxing Day (Tweede Kerstdag), New Year's Day, Easter Friday, Sunday and Monday, Pentecost (Whit Monday), Ascension Day, King's Day (Koningsdag) and Liberation Day (once every 5 years).


Article 5: Reimbursements

    Reimbursements shall be provided in accordance with the People Policies.
    To cover commuting expenses, the Employer shall reimburse the most cost-effective 2nd class public transportation between the Employee's residence and the place of work, in accordance and subject to the conditions set out in the People Policies.


Article 6: Illness

    In the event of sickness and/or any other kind of absence due to care leave, or calamity leave, the Employee shall inform the Employer as soon as reasonably possible, but not later than 9:00 AM on the first day of illness/absence, and must provide an estimate of the duration of absence. The Employee shall follow any instructions of the Employer, such as explained in the People Policies.
    The Employee agrees to comply with all reasonable efforts to aid their recovery, including cooperation with reintegration programs as mandated by Dutch law (Wet Verbetering Poortwachter).
    If the Employee is unable to perform their duties due to illness, the Employer will fulfil its obligations in accordance with Article 7:629 BW.
    If the Employee's incapacity to work due to illness exceeds one month, the Employee will no longer be entitled to commuting expense reimbursement until they resume work.


Article 7: Confidentiality Obligation

    The Employee agrees to maintain strict confidentiality regarding all non-public information relating to the Employer, its partners and affiliates, both during and after the term of this Employment Agreement.
    Confidential information includes but is not limited to: internal policies, business strategies, financial data, partner lists, and other proprietary information.
    The Employee is prohibited from disclosing confidential information in any form, including social media, without prior written consent from the Employer.
    Other than for the benefit of the Employer within the scope of the normal work, the Employee may not copy, compile, merge, assemble or process information, products or systems of the Employer.


Article 8: Employer's Property

    All documents, devices, and other resources provided by the Employer remain the property of the Employer. The Employee agrees to return all such items on the last day of employment, or upon request from the Employer.
    The Employee must immediately report any theft or loss of any items or documents related to their job function provided by the Employer or used by the Employee in their job function.
    The Employee is also required to report immediately to the Employer if they discover a virus, Trojan, or other malware on any computer, laptop, tablet, phone, or other device provided by the Employer or used by the Employee in their job function.


Article 9: Outside Employment (Nevenwerkzaamheden)

    The Employee may perform paid work or freelance activities alongside this agreement, provided the combined total does not exceed 40 hours per week and such activities do not conflict with the Employer's interest.
    Any paid or unpaid activity related to the Employer's mission or cause areas requires prior written approval from the Employer.


Article 10: Intellectual Property

    The Employee will transfer all the intellectual and/or industrial property rights arising from its work to the Employer irrespective of whether the creation, discovery or invention took place during or outside working hours and irrespective of whether the Employee's position either directly or indirectly entails creative, exploratory or inventive work, including the creation of intellectual property, as soon as they are created, in so far as these rights do not already rest with the Employer in accordance with the law. The Employee hereby transfers all intellectual property rights to the Employer and the Employer hereby accepts such transfer. Insofar as necessary to effectuate such transfer the Employee shall, at the Employer's first request, co-operate and perform all actions that the Employer may deem desirable or necessary to effectuate such transfer. The Employee confirms to transfer, to the extent permitted by applicable law, all (future) moral rights the Employee may possess or acquire as a consequence of the performance of the duties under this Employment contract. Insofar as the Employee's moral rights cannot be assigned or transferred due to provisions of mandatory law, the Employee hereby, insofar as permitted by mandatory law, waives such moral rights.
    Unless otherwise provided for by law, the Employee shall not acquire any right to be identified as the creator, discoverer or inventor of any such intellectual property.
    The Employee shall immediately report all creations, discoveries and inventions to the Employer. The Employee shall do whatever may be required to obtain the maximum possible protection of such intellectual property. Where the protection of intellectual property requires an application, an act of filing or a similar act, this shall be done solely in the name of the Employer.
    The Employee acknowledges that the salary includes remuneration for all creations, discoveries and inventions made, including the creation of intellectual property.


Article 11: Non-competition & non-solicitation clause

    The Employer welcomes that the Employee may wish to continue their career where they can have the greatest impact, including outside of the Employer. The Employer therefore does not intend to restrict the Employee from taking up work elsewhere after termination of employment. What the Employer does wish to prevent is that (i) an organisation is started or joined that is, in essence, a copy of the Employer's business operations, services, or products, and (ii) the Employer's employees are approached or solicited to join or work for that other business. Therefore, by signing this contract, the Employee commits, both during the Employment contract and for a period of 6 months after the date on which the Employment contract terminates, to (i) not be engaged in any activities which are in direct competition with the activities of the Employer in a country in which the Employer conducts activities, and (ii) refrain from, either directly or indirectly, engaging individuals who work for the Employer or any of its group companies or who were so during the Employee's employment, and/or accepting their engagement.


Article 12: Penalty clause

    In the event of a breach of any of the provisions of articles 10 and 11, the Employee shall be liable to the Employer for an immediately due and payable penalty of EUR 5,000 per breach and EUR 500 for each day on which the breach continues, without prejudice to any other rights provided for by law or under this Employment contract such as the right to specific performance, the right to an injunction or the right to claim damages in lieu of this penalty.


Article 13: Choice of Law and Final Provisions

    Invalidity of any provision in this Employment Agreement does not affect the validity of the remaining provisions. The Parties will consult to replace the invalid provision with a legally valid one that mirrors the original intent.
    In the event that it has a substantial interest in doing so, the Employer shall be entitled to unilaterally amend one or more of the provisions of this Employment contract and / or the People Policies.
    No amendment and/or addition to this Employment contract shall have any force or effect unless it is in writing. This Employment contract supersedes all previous agreements between the Parties.
    The Employee may request HR for a Dutch translation of this Employment Contract. The Dutch translation will be for internal use only. The English version will prevail.
    This Employment Agreement is governed by Dutch law, and Dutch courts have jurisdiction.

CITY, DATE
Employer
Employee
NAME
JOB TITLE

(signature)
NAME
JOB TITLE

(signature)