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If you employ workers on a fixed-term contract, in some cases a notice period is applicable. Your employees are entitled to know if their contract might be renewed or not and under what terms.
How does it work?
You send your employee a written statement in which you inform them if their contract will be renewed or not. You do this at least 1 month before the contract ends. You also explain the terms of the renewal.
When does it apply?
The notice period for fixed-term contracts only applies to contracts that have a minimum period of 6 months and that end on or after 1 February 2015.
The notice period for fixed-term contracts does not apply to:
- permanent employment contracts
- fixed-term contracts of less than 6 months
- temporary agency worker contracts containing a temporary employment clause
- fixed-term contracts without a particular end date
Failure to give notice
If you fail to give the correct notice period, your employee is entitled to compensation. The amount of compensation (Dutch) depends on both the type of contract and to what extent you have exceeded the notice period.
Failure to provide the proper terms of renewal
If you have given proper notice, but, in case of renewal of the employment contract, have forgotten to specify the terms of the new contract, the terms of the former contract continue to apply.
Difference notice period permament employment and fixed-term contracts
A notice period with regard to permanent employment contracts has to be given before the employment ends. In the case of fixed-term contracts, that end automatically when they reach the agreed end date, its only intention is to inform the employee about what will happen with their contract.