Before you sign

By F. Jager, 30-03-2022 , HR4Expats

Starting a new job is very exciting! Nonetheless, it can be daunting to leave your comfort zone and start somewhere new, especially if there is still a matter of the contract that must be discussed.

I have seen many people trying to read a contract before signing it without knowing what to look for. In this article, I will give you some tips so you know what to look for next time before you sign.

Salary
Most companies in the Netherlands organize their salaries according to a step/scale matrix. Based on your experience, education and function, you will be placed on a certain step in the matrix. Based on your performance, you will grow to the next step in a frequent time frame (often, this is one step per year). If and how the scale is implemented depends on the company and CAO.

Here is an example. John has received an offer from the X-store for the function of a sales employee. Based on his experience and education, he is placed on Scale 1 and step 2 (see the table below).

This means John will start at the X-store with a salary of €2.100 gross per month. After 1 year, John has his performance evaluation. His manager is very satisfied with his performance. Therefore, John will grow to the next step on the matrix (scale 1, step 3), which means John receives a salary of €2.200 gross.

Every year John’s performance is good and grows to the next step on the scale. After 5 years, John has reached the end of the scale, €2600. This means that even if John is performing excellently, he is not able to grow in salary anymore. UNLESS he makes a promotion to a higher function of Sales manager.
A little side note: of course, there are other ways to reward an employee for a great job besides salary. Think of a bonus, lease-car, etc.

In the 6th year, John receives a promotion to become a sales manager. This means he starts at the matrix at scale 2, step 4. Since you are not allowed to go back in salary (unless you are demoted). In the 7th year, John grows to the next step (scale 2, step 5) and receives €2700 gross per month.

Often you can find the specific matrix for your function in the CAO applicable to your company. If you want to know what the salary is after taxes, you can ask the company for a pro forma.
This document shows the indication of your future pay slip. It might variate by a few euro but it’s a good indicator to see what you will receive in your bank account.

Probation period
In most cases, there is a probation period included in the contract. However, double-check this! To implement a probation period, it must be on a written agreement (like a contract). If this is not enclosed in a written agreement, the probation period is invalid. This is a rule by law.

Competition clause
Another important thing to check in the contract is the competition clause. Many companies enclose this vague paragraph in the contract regarding a competition clause. Of course, you are excited about your new job, and quitting is not on your mind now. But do the future you a favor and ask what the competition clause exactly entails. Does it mean you are restricted to work for the competition in a 5km radius? Does it mean you are not allowed to work for the competition in a time frame of 5 years after quitting? Ask the company if they could specify the competition clause a bit more in-depth.

The other parts of the contract you should check is:

  • Working hours: is it the amount you applied for?
  • Termination of the contract. It is always good to know what the duration of the contract is and what the notification period would be.
  • Position: is the position and the responsibilities the same as in the job ad?
  • Is there a CAO applicable? If not, where are the primary working conditions stated?
  • Do you get at least 4x your work week available for vacation? (For full time 20 days)


If any of these topics above are missing in the contract you are about to sign, I suggest you not directly sign the contract. Instead, ask for a draft version, so you can let a friend/family member/college read and evaluate the contract. Rather be safe than sorry.

Source:

  • G.A. Diebels, De Kleine Gids voor het Nederlandse arbeidsrecht, Deventer: Wolters Kluwer 2020.