Direct or interim contract: What’s best for building teams in the Netherlands?

When international companies scale in the Netherlands, one of the first questions they have is: “Should we hire on a direct contract or use temporary staffing?”

Both options are legal, common, and effective in the Dutch market – but they serve very different purposes. Understanding the differences will help you build a team that’s cost-effective, compliant, and fit for your growth plans.

What is a direct contract in the Netherlands?

A direct contract is a long-term employment agreement between a hiring company and an employee. It provides security for the employee and is subject to strong labour protections under the Dutch labour law. It typically begins as a fixed-term contract, usually lasting 6 months to 1 year. According to the Dutch ‘chain rule,’ an employer is obliged to offer an indefinite contract after 3 consecutive fixed-term contracts have been offered over a period of up to 3 years.

Key features:

• The notice period is typically 1 month

• A direct contract offers much greater protection for employees, as termination is only legal under strict reasons

• Dismissal is regulated via the Dutch Employee Insurance Agency (UWV) or in court

When to hire on a direct contract?

Permanent contracts work best when:

• Your business is ready to build a long-term presence in the Netherlands

• You want to invest in leadership roles or specialist talent

• Retention, team culture, and stability are critical to your business’s success

What is a temp/interim contract?

A temporary contract (also known as interim contract, contract work, project-based employment, or temping) is an agreement with a fixed end date or project scope. It’s commonly used when hiring through a recruitment agency or for short-term needs.

Key features:

• The contract lasts for a set period (e.g. 3, 6, or 12 months)

• It often includes a short notice or a no-notice clause

• The contract’s termination is simplified for both the employer and the employee once the term ends

• The contract can be directly with the employer or via a recruitment agency, which then becomes the legal employer

When does it make sense to hire a temp?

Hiring interim staff is beneficial for several reasons:

• Temporary staffing delivers speed and offers a lot of flexibility when you need to scale fast for temporary projects or during seasonal spikes in business.

• It’s a low-risk way to test a new role, an employee’s fit, or even a new market (for example, when you are first entering the Dutch market).

• It’s ideal for replacing staff on leave, such as maternity leave, sabbaticals, or long-term sick leave.

Why hire interim staff through a recruitment agency?

• All legal and compliance requirements are covered (by an ABU-certified agency)

• Payroll is handled by the agency, reducing administrative workload

• Interim workers do not add to your headcount, as they are legally employed through the staffing agency

The best of both worlds

Many companies find the best approach is a blended one, combining both temporary and permanent staffing. This strategy allows them to start with temporary contracts to gain speed, flexibility, and lower risk. Once a temp’s performance and fit are proven, they can be converted to a permanent role. Ultimately, this model uses temporary staffing for surge periods and permanent hiring for foundational roles, enabling a company to remain agile while building long-term strength.

How a recruitment agency can offer the perfect solution

Whether you’re setting up your first Dutch office or adding new roles across departments, Adams Multilingual Recruitment helps you make the right hiring decisions.

• Temp & perm staffing across industries such as marketing, sales, HR, finance, customer success, and more

• Multilingual candidate pool ready to work

• 28 years of Dutch employment knowledge to keep you compliant

• Fast placements from job brief to onboarding in a few weeks