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An oral employment contract is perfectly valid in the Netherlands: an employment contract does not need to be in writing. Nevertheless, working without a written contract is risky — for both employer and employee — especially because, in the event of a dispute, you must be able to prove what was agreed upon.
Oral is valid
An employment contract is established through a meeting of minds regarding work, wages, and authority; a written document is not required for this. A verbal agreement to come to work for wages, under your supervision, is therefore a legally valid employment contract.
The risk lies in the evidence
The problem arises during disputes. Was it agreed that the contract was temporary, or does it apply for an indefinite period? What exactly is the salary, position, or working hours? Without a written contract, this is difficult to prove. This was recently demonstrated again: an employer could not prove that a temporary contract had been agreed upon, with major consequences.
Doubt often works out in the employee's favor
If you cannot prove that a contract was temporary, it can be assumed that it applies for an indefinite period — resulting in protection against dismissal and ongoing obligations. Furthermore, clauses that must be in writing, such as a probationary period or a non-compete clause, do not apply if they were only agreed upon verbally.
Always record it in writing
Therefore, always draw up a written employment contract specifying the duration, salary, position, working hours, and desired terms. This prevents evidentiary problems and disputes, and ensures that you also comply with your duty to inform the employee. A good contract protects both parties.
Frequently Asked Questions
Is an oral employment contract valid?
Yes. An employment contract does not have to be in writing to be legally valid.
Why is oral communication risky after all?
Because in the event of a conflict, you must be able to prove what was agreed upon. If you fail to do so, a temporary contract, for example, can be deemed permanent.
Do verbal agreements regarding a probationary period or non-compete clause apply?
No. Those clauses must be agreed upon in writing, otherwise they are not valid.
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