Charlotte Urlus, 24 September 2026

Changing terms and conditions of employment: when is an employer permitted to do so?

Sooner or later, every employer runs into it: the need to change an employee’s terms of employment. A different work schedule, an adjusted role, the removal of a bonus, or a mandatory return to the office. But what can an employer change unilaterally, and when is the employee’s consent required? In this blog, we explain how to approach a change to employment terms in a legally sound way under Dutch law.

Under Dutch employment law, the basic rule is that an employment contract cannot be amended unilaterally. Employment terms are agreements between employer and employee and changing them generally requires the employee’s consent. This applies to primary terms such as salary, working hours and holiday entitlement, but equally to secondary terms such as a company car or a bonus scheme.

If an employer changes an employment term without consent, there is a risk that the employee will later challenge that change. A Dutch court can then restore the original agreement, in some cases with retroactive effect.

The unilateral amendment clause

An exception applies if the employment contract contains a so-called unilateral amendment clause (Section 7:613 of the Dutch Civil Code). This is a written clause that gives the employer the right to unilaterally amend the employment terms. Even then, however, the employer cannot simply rely on it at will. The bar is set high: the employer must be able to demonstrate a compelling business interest that justifies the change. A reorganisation or a fundamental change in business operations may qualify as such an interest, but cost-cutting alone is generally not sufficient.

The standard of good employership

If the employment contract does not include an amendment clause, the employee is in principle not obliged to agree to a change. Even so, under Section 7:611 of the Dutch Civil Code, the statutory standard of good employership, an employee may in certain circumstances be required to accept a reasonable proposal to amend the terms. The Dutch Supreme Court has developed a test for this. Are there changed circumstances in the workplace that give rise to the proposal, is the proposal itself reasonable, and can acceptance reasonably be required of the employee?

In practice, this comes down to a balancing of interests. A significant deterioration of employment terms is less likely to be considered reasonable than a minor adjustment to working hours. The greater the impact on the employee, the stronger the justification must be.

Practical tips for employers

Include a unilateral amendment clause when drafting the employment contract, rather than only once it becomes necessary. This gives the employer the legal room to make changes later, provided a compelling business interest exists at that time.
Always obtain consent in writing. A verbal agreement is difficult to prove and will not hold up in a later dispute. Record the change, the reason for it, and the effective date in an addendum to the employment contract.
Communicate early and transparently. Explain why the change is necessary and what its consequences are for the employee. Employees are far more likely to accept a change once they understand why it is needed.
Offer a transition period where appropriate. Particularly for significant changes, a reasonable transition period demonstrates good employership and reduces the likelihood of legal proceedings.
Involve the works council in good time. For collective changes, the works council may have a right of consent under the Dutch Works Councils Act (Wet op de ondernemingsraden). Do not skip this step: a decision taken without the required consent can be annulled.

In short

Changing employment terms is not simply a matter of sending an email and moving on. With the right preparation, clear communication and proper documentation, employers can prevent disputes further down the line and demonstrate that they are acting diligently. Are you unsure whether a proposed change would hold up legally, or would you like an amendment clause or addendum drafted that actually stands firm? Get in touch. We are happy to think this through with you and make sure you are not faced with unwelcome surprises later on.

And naturally, the same applies in the other direction: if you are an employee facing a proposed change to your employment terms and are wondering whether you are required to agree to it, we are of course glad to assist you as well.