EU Working Time Directive 2025: Compliance for Dutch companies
More and more Dutch companies are faced with European rules for working hours. Organizations in consultancy and IT, in particular, find that complying with these rules is sometimes difficult in practice. Teleworking in Dutch companies has exploded in the past twenty years: the share rose from 26% in 2004 to 85% in 2024, more than tripling it. This article explains what the EU Working Time Directive is, which rules apply, and how Dutch service providers deal with it.
What is the EU Working Time Directive
The EU Working Time Directive is a 2003 European law (Directive 2003/88/EC) that sets rules for maximum working time and rest periods. The Netherlands has implemented this directive into the Dutch Working Time Act.
The directive applies to all employers in the EU who employ staff. The goal is to protect employees from overtime and to ensure that everyone gets enough rest. For consultancy and IT companies, this means adapting their work schedules to European standards.
- Worker protection: Prevents overload by setting maximum working hours
- Level playing field: Ensures the same rules in all EU countries
- Legal basis: Forms the basis for the Dutch Working Time Act
Most important rules about working and rest times
The EU Working Time Directive sets clear limits on how many hours a person can work and when rest is mandatory. These rules apply to all employees, including in the IT and consultancy sectors.
Maximum working time per week
On average, employees are not allowed to work more than 48 hours per week, including overtime. This calculation takes place over a maximum period of four months. For consultancy companies that often work on a project basis, this means that busy periods are offset with quieter weeks. Netherlands By the way, has one of the shortest average working weeks in the world with just 29 hours a week, with 86% of working mothers working less than 35 hours a week.
With a written agreement, employer and employee can agree that someone works more than 48 hours a week. The employee can always withdraw this “opt-out” agreement without consequences.
Daily and weekly rest periods
Every employee is entitled to at least 11 hours of continuous rest per day, which means that after a working day until 22:00, the next business day can only start at 09:00.
In addition, a weekly rest of at least 24 hours applies, in addition to the daily rest. This rest period also applies to weekend work for IT migrations or emergency projects.
Breaks during the working day
For a working day longer than six hours, a break is mandatory. For office work, there is usually a break of 30 minutes, which can possibly be included in two parts. This break time does not count as working time.
Compliance with the Working Time Directive in practice
Many Dutch service providers do not register their working hours accurately enough. We see that consultancy and IT companies miss out on 10-15% of their billable hours as a result. Research shows that Dutch consultants only invoice 85% of their actual billable hours to customers, leaving 15% of consultancy time unregistered and possibly losing €44,000 per consultant annually.
Practical compliance consists of four main components:
- Accurate time recording: Record all hours worked, including overtime
- Keep documentation: Save working time registration for at least two years
- Inform employees: Informing employees about their rights
- Set up monitoring: Use systems that warn of possible violations
For Dutch service providers, this often means switching from Excel sheets to professional time registration systems. These systems often link to accounting software such as Exact or AFAS.
Exceptions and special situations
The EU Working Time Directive has some exceptions for specific groups and situations. Supervisors can sometimes be exempted from rest time rules, but the maximum working time of 48 hours per week always applies.
Autonomous employees with full control over their working hours sometimes fall outside the directive. Please note: bogus self-employment may cause the rules to apply anyway.
In emergencies, such as a major failure or crisis, the rules may be temporarily deviated from. These deviations must later be compensated with extra rest.
*Compensation later required
Automatic monitoring and reporting
Manual control of working hours takes a lot of time and often leads to errors. On average, companies with automated systems spend 30% less time on administration.
Real-time alerts
Modern time registration systems notify managers immediately if an employee is about to exceed the maximum working time. This prevents violations before they happen. The manager or administrator can also often make changes afterwards.
Automated reporting
Professional systems can generate the reports that the SZW Inspectorate can request based on your data. Integration with Dutch accounting software makes the process from time registration to payroll administration seamless.
We see that companies that switch to integrated time registration systems such as TimeChimp not only become compliant, but also set more billable hours.
Sanctions and risks in case of non-compliance
Non-compliance with the EU Working Time Directive involves various risks for Dutch companies.
The SZW Inspectorate can impose fines of up to €10,000 per offence. In the event of repeated offences, these amounts can quickly increase. In addition, employees can claim wages and compensation if their rights are violated.
Reputational damage is another risk. Customers and potential employees can become reluctant if it appears that a company is not taking employment legislation seriously. In the tight labor market for IT and consultancy professionals, this can be a major disadvantage.
Practical steps for Dutch service providers
For consultancy and IT companies, there are five concrete steps to comply with the EU Working Time Directive:
- Inventory current processes - Map how working hours are currently registered
- Deploy digital time tracking - Choose a system that meets Dutch requirements
- Train employees - Explain why accurate recording is important
- Set alerts - Provide automatic notifications in case of exceedances
- Review and archive - Keep records safe for at least two years
Want to see how time tracking simplifies compliance? Try TimeChimp for free and discover how more than 4,000 Dutch companies optimize their time.
FAQs
The directive only applies to employees, not to real self-employed workers. However, if a self-employed person actually works as an employee (false self-employment), the directive may still apply.
Yes, all hours worked including overtime must be accurately recorded. This applies to all employees, regardless of their contract or position.
The basic rest periods of 11 hours a day and 24 hours a week cannot be negotiated. Only for the maximum working time per week, there is an opt-out option by written agreement.
Working time registration is kept for at least two years and is immediately available, digitally or on paper, when audited by the SZW Inspectorate.