An employment contract is the foundation of the employment relationship between employer and employee. Yet there are many different types of contracts and various rules apply. As an employee, it is important to know your rights and obligations so that you are not caught off guard.
In this article, we discuss the most important types of employment contracts, the legal rules and the most common pitfalls.
What is an employment contract?
An employment contract is an agreement between employer and employee whereby you:
personally perform work;
are employed by the employer (authority relationship);
and receive wages in return.
Once these three conditions are met, there is legally an employment contract – even if there is no written contract.
Types of employment contracts
1. Fixed-term employment contract
A contract with a clear end date. Important to note:
You may receive a maximum of 3 temporary contracts within 3 years (chain regulation).
After that, you are entitled to a permanent contract.
Gaps of more than 6 months break the chain.
2. Permanent employment contract (indefinite-term contract)
Provides the most security.
Dismissal is only possible via the UWV, court or settlement agreement.
Offers more dismissal protection and accumulation of rights.
3. On-call contracts (zero-hours and min/max)
You are only called in when there is work.
Since the Balanced Labour Market Act (WAB), you are entitled to a fixed number of hours after 12 months.
During illness or holiday, you are entitled to continued payment based on average hours worked.
4. Temporary agency contract
You are employed by a temporary employment agency but work for a client company.
Special rules apply, such as the phase system.
Work as a temporary worker can count towards successive employership.
5. Secondment contract
You are permanently employed by a secondment agency and are assigned to clients.
Often provides more security than a temporary agency contract.
6. Employment contract with special clauses
Non-compete and non-solicitation clauses.
Probationary period.
Confidentiality clause.
Important rules for employment contracts
Written form: not mandatory, but strongly recommended.
Minimum wage: you are always entitled to at least the statutory minimum wage.
Holiday days: a minimum of 4 times the number of days you work per week.
Continued payment during illness: at least 70% for 2 years.
Notice period: depending on length of service and collective labour agreement.
Practical examples
Example 1: An employee received four temporary contracts in three years. The court ruled that this automatically became a permanent contract.
Example 2: An on-call worker structurally worked 25 hours per week. He was able to enforce a fixed number of hours through the legal presumption of scope of employment.
Example 3: An employee first worked through a temporary employment agency and then directly for the client company. His previous agency years were counted.
Employment contract checklist
Is everything clearly documented (position, salary, hours)?
How many temporary contracts have you already had?
Are you receiving at least the minimum wage and holiday allowance?
Are arrangements for illness and leave properly regulated?
What special clauses are included (non-compete, confidentiality)?
Common mistakes
Accepting too many temporary contracts without realising this automatically results in a permanent contract.
Signing an on-call contract without knowing that after 12 months you are entitled to fixed hours.
Not paying attention to a non-compete clause that can seriously limit your career.
Making verbal agreements that cannot be proven later.
Frequently asked questions (FAQ)
1. When am I entitled to a permanent contract?
After three temporary contracts or three years of employment, unless there was a gap of more than six months.
2. Can my employer keep giving me a zero-hours contract?
After 12 months, the employer must offer you fixed hours.
3. What is the difference between temporary agency work and secondment?
With temporary agency work, you are flexibly employed by an agency; with secondment, you often have a permanent contract with the secondment company.
4. Can I conclude my employment contract verbally?
Yes, you can, but written is always safer.
5. Do I have to accept a non-compete clause?
No, this is negotiable. Seek legal advice if it restricts you.
Why Arslan Advocaten?
Specialised in employment law and employment contracts
Assistance with reviewing and negotiating contracts
Advice on disputes regarding on-call contracts, temporary agency work and successive employership
Always focused on your rights and future opportunities
Conclusion
An employment contract may seem standard, but the differences between contract types are significant and can greatly affect your rights and security. Therefore, always have your contract checked to ensure it is correctly drafted and that you are optimally protected.