Document background
The Deferred Compensation Contract is a specialized agreement used in the Netherlands when an employer wishes to establish a formal arrangement for postponing payment of an employee's compensation to a future date. This type of contract is particularly valuable for tax planning, employee retention, and long-term incentive purposes. It must comply with Dutch tax and employment legislation, including the Wages Tax Act and Civil Code provisions. The document typically includes detailed terms about the deferred amount, vesting schedule, payment conditions, and tax implications. It's commonly used for executives and key employees, especially in situations involving performance-based compensation or long-term incentive plans. The contract must carefully address Dutch-specific requirements regarding social security contributions, pension implications, and employee protections.
