Almost every business has or will have to deal with personnel. For this reason, businesses often use employment contracts & NDAs for all employees. Therefore, it is important that this employment contract is correctly setup. The employer lays down the agreements between themselves and the employee in this employment contract. But which agreements do the employment contract cover? Join us as we explain setting up contracts & NDAs.


Payment is perhaps one of the most important components of contracts & NDAs. The employee provides labor in exchange for payment by the employer. The activities are laid down in the employment contract. Of course, the payment is also recorded. This payment is also known as wages. Usually this wage consists of money, but the employer may also pay (partial) wages in kind, of the part that is above the minimum wage (if applicable). For example, the employee may receive shares in exchange for his labor, or the employee may receive a house from the employer.


The employer has the right to determine the work content of the employee, so the employer can also give orders to the employee. The employer must outline these activities in the contract. This makes it clear what is expected of the employee and an employer can start a targeted improvement process in the event of any dysfunction.

Trial Period

In the contract is also room to indicate whether the employee has a trial period. During this period, an employer has the right to legally dismiss the employee. The length of the trial period can differ in length, from 15 days up to 100 days. If the trial period is too short, the employer doesn’t know the full set of skills and work ethic of the employee. You also don’t want a long trial period as it will not support the morale of the employee and you don’t want to have an uncertain work situation for a long time. The most common trial period length is 90 days.

No Employment Contract?

Business experts strongly warn employers and employees against not signing employment contracts. An employment contract is beneficial for both the employer and the employee. Also, in case of a dispute, an employment contract can significantly speed up the process when it is required.

Non-Disclosure Agreements (NDA)

Multiple parties are involved in collaborations, often involving sensitive information from one of the parties. You can see this collaboration in the broadest sense of the word. An example of this is with an employer and employee. Often a confidentiality agreement is signed between the employer and the employee. It is also useful to sign a confidentiality agreement for projects and collaborations with external parties. It is recommended that you sign a nondisclosure agreement if there is a risk of sensitive information being accessed by the other party.

Situations In Which You Need An NDA

It is useful to have an NDA in the following situations:

  • In an acquisition or a merger. Before any actual takeover or merger has been signed, confidential information has already become public. This information is confidential and perhaps the core of your business. You don’t want this to just end up on the street.
  • When hiring an employee. The employee will come across information at his/ her work that is the property of your organization, and you do not want that information to be on the street for everyone.
  • When hiring a consultant or other contractor. This consultant or contractor comes from outside the organization and will also leave the organization. So even with such a collaboration it is useful to make a confidentiality agreement, or an NDA.
  • In conversations with investors about products that a company has not (yet) set a claim for through intellectual property rights.