Reorganization with a temporary contract in the Netherlands
If you work in the Netherlands on a temporary or fixed-term contract, you have less protection than on a permanent contract, but you are not without rights. Two of them are often overlooked.
What does this mean for you?
This page explains your rights under Dutch employment law. It is written for employees who work in the Netherlands, including highly skilled migrants and other internationals. If you are employed on a fixed-term Dutch contract, the following applies to you regardless of your nationality.
Your contract ends by operation of law
A temporary contract ends by operation of law on the agreed end date. For that expiry your employer does not have to give notice and does not need permission from the UWV (the Dutch Employee Insurance Agency). If your employer instead wants to end the contract early, stricter rules apply, which we discuss below.
In a reorganization your employer may choose not to renew
If your contract expires during or around a reorganization, your employer may decide not to renew it. The contract then simply ends on its end date.
That is legally different from dismissal. It makes your position weaker than that of a colleague on a permanent contract, but it does not mean you have no rights.
Less protection, but not without rights
Your employer must observe the notification obligation (aanzegplicht), in many cases you are entitled to a transition payment, and without an interim notice clause your employer cannot simply let you go early.
It is precisely those points that determine your position, and on each of them there is often more to gain than people think.
If your contract expires and you meet the conditions, you can usually also claim an unemployment benefit (WW).
Your rights on a temporary contract
- Notification obligation: written notice at least one month before the end date (Art. 7:668 BW)
- A notification penalty if your employer does this late or not at all
- In many cases entitlement to the statutory transition payment (Art. 7:673 BW)
- Without an interim notice clause: in principle pay or damages until the end date
- Protection under the chain rule (ketenregeling, Art. 7:668a BW)
- In most cases entitlement to an unemployment benefit (WW)
- The right to legal advice before you sign anything
Four things you need to know
Around the end of a temporary contract, a few rules determine your position. Two of them are often overlooked.
The notification obligation
For a contract of six months or longer, your employer must let you know in writing at least one month before the end date whether the contract will be continued, and if so on what terms (Article 7:668 BW). If this is done late or not at all, you are entitled to a notification penalty, up to one month's salary.
You too are entitled to a transition payment
On a temporary contract too, since 2020 you are entitled to the statutory transition payment if your employer does not renew it (Article 7:673 BW). This right exists from your first working day and is calculated according to the length of your employment.
You may come into view earlier
In a reorganization, the Dismissal Regulation (Ontslagregeling) prescribes a fixed dismissal order. First to come into view are, among others, agency workers, on-call workers and employees who have reached state pension age, together with employees on a temporary contract that expires within 26 weeks. For the employees who are then still eligible for dismissal, the reflection principle (afspiegelingsbeginsel) determines the selection. So you do not automatically go first; the order has several statutory steps.
Are you close to a permanent contract?
Under the chain rule, a permanent contract arises if you have had more than three successive temporary contracts, or if the series has lasted longer than three years, with gaps of no more than six months (Article 7:668a BW). A collective labour agreement (cao) can widen or narrow these limits within the statutory possibilities, so the rule does not always apply in full. If you are close to that point, have it checked whether you are already entitled to a permanent contract.
Can your employer let you go earlier?
If your employer wants to end your temporary contract before the end date, that is usually not possible just like that. This is one of your strongest points.
Early notice is not free
For an ordinary early termination, an interim notice clause in your contract is required in the first place. But even with such a clause your employer cannot give notice freely: prior permission from the UWV or dissolution by the subdistrict court is still needed, except in the case of a justified summary dismissal for urgent cause.
If there is no notice clause, your employer cannot end the contract by ordinary notice. The employer can then only try to have the contract dissolved by the subdistrict court, propose a termination by mutual consent, or, where there is an urgent cause, give summary dismissal.
You can claim until the end date
If your employer ends the contract without a valid ground, you can in principle claim pay or damages until the agreed end date. That can strengthen your negotiating position.
Watch out with a settlement agreement
If your contract simply expires, a settlement agreement is often unnecessary. If your employer wants to let you go earlier, do not sign without having the consequences assessed. After signing you have 14 days of statutory reflection time (Article 7:670b(2) BW); if that is not mentioned in the agreement, the period is three weeks.
Before you sign or agree
- Check whether your contract contains an interim notice clause
- Without a clause: do not let yourself be pressured to leave early
- Work out up to which date you are entitled to pay
- Check whether the notification obligation has been observed
- Have a proposal assessed legally before you agree
- Bear in mind your right to a transition payment on non-renewal
What you can do now
If your employer is reorganizing and you have a temporary contract, it is wise to take the steps below. The sooner you map out your position, the more options there are.
- Find out when your contract ends and whether it has already been renewed
- Ask in good time, in writing, whether your contract will be continued and on what terms
- Check whether your contract contains an interim notice clause
- Keep track of how many contracts you have had and for how long, with the chain rule in mind
- Keep all correspondence and documents you receive
- Have a proposal assessed legally before you agree
ReorgLegal assesses your full situation: your contract and its term, the notification, any build-up under the chain rule, your place in the dismissal order and a proposed exit package. On that basis we determine what rights you have and what would be a reasonable outcome in your situation.
Frequently asked questions
Can my employer simply not renew my temporary contract?
Yes, your employer may decide not to renew. However, the notification obligation must be observed, and in many cases you are entitled to the transition payment.
Will I receive a payment if my contract is not renewed?
In many cases yes. Since 2020 you are entitled to the statutory transition payment on a temporary contract as well when the employer does not renew.
Can my employer send me away earlier?
Not just like that. Even with an interim notice clause, prior permission from the UWV or dissolution by the subdistrict court is required. Without a clause, your employer can at most request dissolution or propose an arrangement; otherwise you in principle retain the right to pay or damages until the end date.
I have already had several temporary contracts, am I permanent?
Possibly. After more than three successive contracts or a series lasting longer than three years, a permanent contract may have arisen by operation of law. Have this checked.
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