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NL employment law interactive guide

Interactive decision tree guiding companies to the right employment model: entity, EOR, or contractor. Branching questions with personalised recommendation.

About this tool

Guide companies to the right employment model (own entity, Employer of Record, or contractor) using a branching decision tree based on headcount, timeline, and commitment level.

For whom

Companies exploring Dutch market entry who are unsure which employment model fits.

Inputs

A series of branching questions about company stage, planning horizon, and risk tolerance.

Output

Personalised recommendation with explanation.

Step 10 of 1 answered

How many people do you plan to employ in the Netherlands?

Headcount affects the cost-efficiency of different employment models. Larger teams generally justify the overhead of establishing a local entity.

Sources & methodology

How the result is computed

Decision branches are anchored on three statutory pivots: (1) whether you need a Dutch legal entity (driven by substance and permanent-establishment tests), (2) whether the work qualifies as employment vs contractor under Wet DBA/VBAR, and (3) whether the expected duration exceeds the EOR break-even horizon. Each leaf of the tree surfaces the dominant legal regime that applies to that configuration.

Primary sources

  1. 01Dutch Civil Code Book 7, Title 10: employment contractStatutory foundation of the Dutch employment relationship (authority, wages, personal performance).
  2. 02Wet Werk en Zekerheid (WWZ) & Wet Arbeidsmarkt in Balans (WAB)Fixed-term contract chain rules, transition payment, and permanent-contract incentives that drive the "entity vs EOR" branch.
  3. 03Wet DBA & Wet VBAR: contractor frameworkCriteria that push a relationship out of the contractor branch into EOR/entity territory.
  4. 04Belastingdienst: permanent establishment (vaste inrichting)Tests used to decide whether hiring in NL triggers a corporate-tax presence: drives the entity-required branch.

Results are indicative and based on publicly available Dutch law, tax-authority guidance, and Octagon's engagement history. Always confirm specifics with a qualified adviser before acting on them.

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