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PEO in the Netherlands

The Netherlands is a country that welcomes international investment and global trade. It fosters an open economy made to entice start-ups, entrepreneurs, and foreign companies to do business in the country. It presents a competitive economy that invites companies poised for global expansion. The country also boasts a productive workforce that can help your company thrive and achieve its business goals faster.


As straightforward as it is to establish a subsidiary or branch office of your business in the Netherlands, it can be a lengthy and costly process that may not be favorable for your company. For this reason, a better option may be to hire new employees through a Professional Employer Organization (PEO) for a faster and more cost-effective solution.


What is a Global Professional Employer Organization (PEO)?

A global PEO helps you hire employees even without establishing a legal entity in the country where you are planning to start your business. The PEO provider will handle the payroll, taxes, benefits, and all human resources-related activities of the employees, enabling the new hires to solely focus on your business needs.


PEOs act as your co-employer. They technically hire the employees and are responsible for managing payroll services and complying with local state laws. You still retain business decisions and employee functions, allowing you to use the new talents as if you hired them directly through traditional methods.


How Does a PEO Work in the Netherlands?

Employment laws in the Netherlands require thorough attention to detail, which many businesses seldom have the time or resources to spend on. The lengthy process of filing for benefits, payrolls, contracts, employment insurance, records, and visa requirements can be too resource-intensive to manage. With the help of a PEO service, the burden of handling all these things is removed, expediting the hiring process while remaining compliant with the legal requirements.


PEO providers hire people on your behalf, acting as your employer of record (EOR) in the Netherlands. In short, you are contracting them to get new hires while following the stipulations stated in the labor laws in the Netherlands. This saves you from compliance issues as the PEO provider will be the one to handle that aspect.


The PEO acts as the employer of your new hires in the Netherlands, shouldering all the local requirements for employment. You provide the employment criteria to the PEO company, and they will handle the rest.


Hiring through a global PEO company lets you eliminate the need to deal with legal entity liabilities. This method also allows you to minimize, if not eliminate, contractor risks while allowing you to quickly acquire new talents to cope up with increasing market demands. Additionally, new employees can start working with your company almost immediately because the PEO company will manage their paperwork.


Who needs a PEO Solution?

If you have limited resources to put into directly hiring employees in the Netherlands, your business will benefit the most out of PEO solutions. Start-ups and corporations who want to test the waters in the country can also fast-track compliance-related issues through PEOs.


Benefits of PEO Services in the Netherlands


  • Rapid onboarding solution – The PEO will handle everything you need for employment, including complicated paperwork, tax registrations, insurance, and benefits. In a couple of days, you can get your new employee working for your company.


  • Leave it to experts – PEO companies have in-depth knowledge of labor laws, tax systems, payroll practices, and local regulations in the Netherlands. Even if you are unfamiliar with these areas, your PEO agency is able to handle this for you.


  • Ensure instant, full compliance – Global PEO companies are compliant with the laws of the country they operate in. When you enlist their service, you allow them to become your EOR in the Netherlands. Therefore, you will start hiring through their compliant channel.


  • Low-cost international expansion – Global PEO solutions are designed to reduce the cost and complexity of expanding into the Netherlands. By tapping their resources, you can hire new talents without the need to establish a legal entity in the country.


  • Streamlined hiring process – You can skip the lengthy process and avoid red tape associated with hiring new talents in the Netherlands. Our recruitment experts have effective processes and systems to find the best suited talent to match your business needs. All you need is to provide the hiring qualifications, wait for the PEO to present the candidates, and approve the employment agreement.


  • Get control over business decisions – Employees hired through a PEO are still under your control. It is your responsibility to assign them the tasks that will drive your company towards success. It is also up to you whether you will retain them after a certain period or look for other candidates to carry out your operations.


Partnering with INS Global

Launching a business internationally can be a daunting, challenging, and time-consuming task. Having a trusted partner like INS Global, which has over 15 years of experience providing comprehensive PEO solutions to businesses in various industries, makes it easier and faster. Our team of experts is well-versed in the local employment laws in the Netherlands, ensuring full compliance for your business. Get in touch with us today to learn how we can help you with your global expansion.


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