Hiring hospitality staff: essential steps and tips
After an intensive search, you've finally found the perfect candidate for the open position in your hospitality business. While you're probably eager to get this person started right away, there are still some administrative tasks to handle first. What needs to be done before your new employee can actually start working?
Make clear agreements
When hiring hospitality staff, it is important to make and document several agreements before the employment begins:
Job description: What role will the new employee fulfill?
Work hours: How many hours per week will the employee work?
Salary: What will the employee earn?
These agreements must be clearly and formally documented to prevent misunderstandings and ensure legal clarity.
Employment contract for hospitality staff
In the employment contract, you will document all agreements with the employee. This document should include the job description, working hours, salary, and other employment terms. You can also include a probation period to assess if the employee is suitable for the position. During this period, both parties can terminate the contract immediately. A non-compete clause can also be included to prevent the employee from working directly for a competitor after leaving your company.
Determine the contract duration: an employment agreement can be for a fixed term (temporary) or an indefinite term (permanent). This provides both you as the employer and the employee with clarity about the expected duration of the employment relationship and possible extension options, ensuring transparency for both parties.
Tasks and responsibilities
Accurately describe the specific tasks and responsibilities of the position the new hospitality worker will fulfill. This can range from serving and kitchen duties to management tasks, depending on the role.
Comparison with reference jobs
Compare the business role with reference jobs as specified in the Collective Labor Agreement (cao). Choose the reference job that best matches the business role. For example, a server might have a reference number of B3.1, indicating that this role falls into function group III.
Job groups and salary tables
When determining the salary for hospitality staff, it is important to consider the legal minimum wage, which in 2024 is €13.27 per hour for a 36-hour workweek. This ensures that the employee is placed in the correct job group and receives the appropriate base salary.
By following these steps, you ensure that your new hospitality employee is fairly compensated according to current cao agreements and legal requirements.
Secondary employment conditions
It is wise to include these secondary employment conditions in the employment contract or as an annex to the contract. This provides clarity and prevents misunderstandings. Examples of secondary employment conditions are:
Meals during work hours: Many hospitality businesses provide meals during work hours, which contributes to the health and well-being of employees, promotes team building, and saves costs.
Tipping policy: A transparent tipping policy is crucial. This can be arranged in various ways, such as equal distribution, a percentage of sales, or team distribution. Clear communication about the tipping policy prevents misunderstandings and ensures fairness.
Employee discounts: Employee discounts on meals, drinks, and events are attractive benefits that show appreciation, foster loyalty, and strengthen team bonding.
The importance of identity verification for new employees
Establishing the identity of a new employee is a crucial first step in hiring staff. This process is legally required according to the Dutch Identification Act, and non-compliance can result in fines and legal issues. Identity verification helps prevent fraud and ensures that you do not employ illegal workers, which is important for the integrity of your business. Additionally, proper identity verification ensures that you have the correct information for tax administration, essential for correctly completing payroll tax forms and other tax-related documents.
How to verify an employee's identity
Check the identity document: Ask your new employee to show a valid identity document. Valid identity documents include: A Dutch passport or ID card, An EU/EER passport or ID card, A residence document for non-EU/EER citizens, A refugee passport
Make a copy: Make a copy of the identity document. Ensure the copy is clear and readable, and store it in the personnel administration. Be careful not to copy sensitive information, such as the citizen service number (BSN), unless strictly necessary for your administration.
Check validity: Verify that the identity document is valid and not expired. An expired identity document is not allowed for identity verification.
Compare the details: Compare the details on the identity document with the information provided by the employee, such as name, date of birth, and address. Ensure they match to avoid discrepancies.
Citizen service number (BSN): Ask the employee for their BSN and check if it matches the number on the identity document. The BSN is necessary for tax administration and payroll tax.
Document the identity verification: Note in your administration that the identity verification has been performed and the steps you have taken. This can help in case of inspections by the authorities and shows that you have met your legal obligations.
Hiring foreign hospitality staff
When hiring foreign hospitality staff, you must consider specific regulations and procedures. For employees from EU or EER countries, free movement of workers applies, meaning they can work without a work permit. For staff from outside the EU/EER, a work permit (TWV) or a combined residence and work permit (GVVA) is often required. Additionally, you must check and register the identity and work permits. Ensure you are aware of all relevant legal requirements to ensure compliance.
Drafting a loan agreement
When hiring hospitality staff, it may be necessary to draft a loan agreement for company assets such as laptops, uniforms, or other work-related materials. This agreement specifies which items the employee is loaned, their condition at issuance, the employee's responsibilities for maintenance and use, and the return conditions upon termination of employment. This document helps prevent misunderstandings and provides clarity on the rights and obligations of both parties regarding the loaned materials.
House rules and sharing with employees
Establishing and sharing house rules is essential for the proper functioning of a hospitality business. These rules provide clarity on expected behavior, safety protocols, hygiene regulations, and other important procedures within the company. Specific examples could include the use of personal phones and nail polish. For instance, set rules for when and where employees may use their phones to minimize disruptions during work hours, and guidelines for nail polish to ensure hygiene and a neat appearance. By documenting and communicating these house rules with new employees, you promote a professional and safe working environment for everyone. Ensure that the house rules are easily accessible, for example, by including them in the employee handbook or providing them during the onboarding process.
Legal obligations
In addition to mutual agreements, there are also legal obligations you must meet as a hospitality entrepreneur:
Payroll tax form: Having the employee complete a payroll tax form is another essential part of the administration. This form, also known as the model declaration for payroll taxes, indicates how much income tax and social security contributions you must withhold from the employee's salary. The form contains important information such as the employee's personal details, BSN, and any payroll tax credit. By accurately completing and maintaining this form, you ensure compliance with tax obligations and avoid fines and other sanctions.
Employment contract: A written employment contract is a must. It documents all agreements such as the job description, number of working hours, salary, and other employment terms. This agreement provides both you as the employer and the employee with clarity and protection in case of disputes.
Registration with the tax authorities: If you are hiring an employee for the first time, you must register as an employer with the tax authorities. This is necessary to obtain a payroll tax number, which you need for remitting income tax and social security contributions.
Mandatory insurance: As an employer, you are required to take out certain insurance policies for your staff, such as disability insurance and sick leave insurance. These insurances provide a safety net for your employees in case of illness or an accident and are legally required.
By following these steps and having the necessary documents and forms in order, you ensure that your new employee can start working legally and without issues.
Pension accumulation
Employees aged 21 and older in the hospitality and catering sector are required to accumulate pension benefits with the Hospitality & Catering Pension Fund. As an employer, you do not need to register a new employee yourself. The pension fund receives periodic wage data from the tax authorities and the Employee Insurance Agency (UWV), enabling them to determine which (new) employees should accumulate pension benefits. This system ensures that all employees are automatically included in the pension scheme without additional administrative burdens for the employer. Make sure your employees are aware of this scheme and its benefits.
Privacy and hiring hospitality staff
When hiring hospitality staff, it is important to handle your employees' privacy with care. According to the General Data Protection Regulation (GDPR), you may only collect data necessary for the employment relationship, such as identity details, address, and bank details. You may not request sensitive information, such as medical data, unless there is a legal basis for it. Store the collected data securely and only for as long as necessary for the purpose for which it was collected. Clearly inform employees about what data you collect and how you use and protect it. For certain sectors, such as hospitality, it can be useful to periodically recheck your employees' identity documents, especially if you work with temporary contracts. By carefully establishing and documenting your employees' identity, you ensure compliance with legal requirements and that your business operates fairly and transparently.