Employers and employees can do so through the Joint Industrial Labour Council, the Social and Economic Council, Dutch Works The councils, with the European Works Councils, cooperate in various ways. Such partnerships also contribute to stable Labour relations. As a result, wage cost growth has remained modest, while productivity levels have remained high.
In the Netherlands, it has become common practice to include bonus schemes in employment agreements for highly qualified people. Bonuses/awards in specific industries are subject to specific statutory requirements. The wording of these schemes is extremely important because the right design can have tax advantages and save employers unexpected costs at termination of employment. In addition, providing benefits (rather than paying higher salaries) can provide tax advantages for both employers and employees.
It should be noted that contributions to social benefits such as Social Security and retirement payments are mandatory. They are borne by both the employer and the employee. Employers can hire “self-employed” in Holland. Self-employed people are not employees.