Do you work through an employment agency and are you considering signing a permanent contract with the same or a new employer? Then it is important to know how the law deals with temporary contracts and the transition to permanent employment. In this article we explain how the chain arrangement works and when you can claim a contract for an indefinite period.
What is the chain arrangement?
The
chain arrangement stipulates that an employment contract for an indefinite period arises after three consecutive temporary contracts or after a period of 36 months. This applies if the interval between the contracts is a maximum of six months. This means that if you have had three or more fixed-term contracts with the same employer within three years, you will automatically receive a permanent contract.
Switch from temporary worker to permanent employment
If you have worked as a temporary worker and are subsequently offered a contract with the hirer (the company you worked for through the temporary employment agency), it is important to know that your previous contracts can be taken into account when determining your employment history. This affects the question of whether you are entitled to a permanent contract or a higher severance payment upon termination of the employment contract.
Successive employership: when do contracts count?
The law states that contracts with different employers can be regarded as successive if the work at the new employer is comparable to that at the previous employer. This means that if you first worked as a temporary worker at a company and then are employed directly, these contracts can be added together. This means you may be entitled to a permanent contract or severance pay sooner.
Conditions for successive employership
- Employer's initiative: The new employer must approach you to perform the same work. The initiative must therefore come from the employer.
- Similar work: The work you will perform at the new employer must broadly correspond to the work you did through the employment agency. There should be no major differences in tasks or responsibilities.
- Interval: The interim period between the different contracts may not be longer than six months, otherwise the contracts will start counting 'again'.
Consequences for employers and employees
Employers should be careful that if they hire an employee who has previously worked for them as a temporary worker, they may be able to claim a permanent contract more quickly. For employees, this means that when switching from temporary work to permanent work, they may be more likely to qualify for dismissal protection and higher severance pay.
In practice, this could mean, for example, that if you are offered permanent employment with the hirer after your period as a temporary worker, your employment history will be taken into account when assessing your rights.
Suppose, after a series of temporary contracts via theemployment agency, you receive a contract for an indefinite period with the same company. If the employer then terminates the last temporary contract on the agreed end date, you as an employee can rely on dismissal protection. This means that the employer cannot simply dismiss you; permission is then required from theUWVor thesubdistrict court, unless you as an employee – possibly with the help of alawyer– agrees to the dismissal through, for example, a settlement agreement. If this does not happen and you contest the dismissal, a judge can even annul the dismissal.
You can see that taking your employment history into account in subsequent employerships can have important consequences for your legal position, especially when it comes to dismissal and the associated compensation.
When may an employer terminate a permanent contract after the chain arrangement?
If you have automatically received a contract for an indefinite period after applying the chain arrangement, stricter rules apply for terminating your employment. An employer cannot simply terminate the contract on the agreed end date, as with a temporary contract.
Terminating a permanent contract is only permitted with the permission of theUWV or via thesubdistrict court, for example if there is long-term incapacity for work or business economic reasons. Another option is if you, as an employee, agree to the dismissal, for example if this is done through a settlement agreement. If these legal procedures are not followed, ajudge may quash the dismissal and reinstate employment.
Conclusion
The chain arrangement offers both opportunities and points of attention for employees who switch from temporary employment to permanent employment. It is important to understand how successive employership works and how your rights as an employee are affected. Do you have questions about the chain arrangement or would you like advice about your specific situation? Please contact one of the specialized employment law lawyers at Arslan Lawyers.
Keywords: chain arrangement, permanent contract, temporary worker, successive employership, severance pay, employment law, temporary contracts, permanent employment.
