In the Netherlands, many employees work on the basis of a temporary employment contract, also known as a fixed-term contract. This type of contract can be useful for both employers and employees, but also comes with specific rules and pitfalls.
At Arslan Advocaten we regularly advise and litigate on temporary employment contracts, termination of contracts and disputes about employment conditions.
What is a temporary employment contract?
A temporary employment contract is a contract that is entered into for a predetermined period. For example: six months, one year or until a certain date.
After expiry, the contract ends by operation of law, unless it is extended or converted into a permanent contract.
Main rules for temporary contracts
1. Number of extensions (chain arrangement)
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An employer may conclude a maximum of three temporary contracts within a period of three years.
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The fourth contract or the contract that exceeds the three-year term automatically becomes a permanent contract.
Exception for substitute teachers in (special) education: chain arrangement
For substitute teachers who are temporarily deployed in the event of illness of permanent teachers in primary orspecial education, there is an exception to the usual chain arrangement. In this situation, the chain of temporary contracts does not start automatically when you work purely as a replacement in case of illness. This means that the number of temporary contracts does not automatically add up to permanent employment, as long as you only work as a substitute in case of illness. Note: As soon as you no longer work purely as a replacement, or structurally work at the same location, the chain arrangement will still apply. It is therefore important to take a good look at what exactly your contracts have been concluded for.2. Interval
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If there is more than <6 months between two temporary contracts, the chain starts again.
3. Notification obligation
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For a temporary contract of 6 months or longer, the employer must notify in writing no later than one month before the end date whether or not the contract will be extended.
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If the employer does not do this, the employee can claim a indemnity.
4. Interim termination
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In principle, a temporary contract ends automatically.
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You can only cancel prematurely if this has been agreed in writing in the contract.
Tacit extension of a temporary contract
It sometimes happens that an employee continues to work after the agreed end date, while the employer says nothing about this. In that case, the temporary contract will be automatically continued under the same conditions. This is called a tacit extension. The duration of the extension is equal to the original contract duration, but does not exceed one year. Please note: this new period also counts towards the chain scheme, so it is important as an employer to keep a good overview.Practical examples
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Example 1: An employee had three temporary contracts of one year each. The fourth contract automatically became a permanent contract, even if the employer did not want that.
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Example 2: An employer forgot to inform an employee in time that his contract was not being extended. The employee was entitled to a severance payment of one month's salary.
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Example 3: An employee was given a one-year contract without an interim termination clause. When the employer wanted to dismiss her after six months, this turned out to be impossible without mutual agreement or court intervention.
Checklist for temporary employment contracts
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📄 Check the end date of your contract.
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📝 Check whether there is an interim termination clause in the contract.
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📧 Keep an eye on whether the employer gives you written notice for a contract of 6 months or longer.
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📂 Count the number of contracts and the total duration (chain arrangement).
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⚖️ Consult an employment lawyer in a timely manner in case of doubt or conflict. For example, have you not received a permanent contract even though you thought you were entitled to one? Or are there unclear agreements in your temporary contract that you want to have checked? Don't hesitate to seek advice—a specialist can often help you get started quickly and prevent unnecessary problems.
Tips to increase your chance of a permanent contract
- 🤝 Prepare the conversation well. Think about why you are valuable to the company. List your achievements, skills and projects where you have excelled.
- 🗣️ Use clear conversation techniques. Think about how to express your wishes clearly. For example, practice with a friend or colleague.
- 💪 Show that you want to grow. Indicate how you want to develop further and how that fits in with the company's goals.
Holiday days and holiday pay with a temporary contract
Even if you have a temporary employment contract, you still accrue vacation days and holiday pay. It does not matter whether you work full-time or part-time; the number of vacation days is calculated based on the number of hours worked. The exact number of days off you get is usually stated in your contract or the collective labor agreement that applies to your work. The holiday pay is usually paid out once a year, often in May, or at the end of your contract.Why Arslan Lawyers?
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Expert advice on employment contracts and dismissal
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Years of experience in labor disputes and procedures
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Personal and practical approach
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Both for employees and employers
- Clear answers to all your contract questions
- Carefully review your contract together before signing
- Advice on employment conditions, with an eye for your collective labor agreement
- Personal advice about work, income and career
- Support with financial planning and help with money worries
- Extra benefit: discount on insurance, energy, groceries and more
FAQ about temporary employment contracts
1. Can my employer extend my temporary contract indefinitely?
No, a permanent contract is automatically created after three contracts or three years.
2. What exactly is the notification obligation?
For contracts of 6 months or longer, the employer must inform you in writing one month before expiry whether the contract will be extended.
3. Can I terminate a temporary contract prematurely?
Only if this has been agreed in the contract. Otherwise not, unless the employer agrees.
4. Do I receive a transition payment at the end of a temporary contract?
Yes, you are also entitled to a transition payment if your contract is not extended.
5. What if my employer does not adhere to the rules?
Then you can claim compensation or in some cases enforce a permanent contract. Do you feel that you were entitled to a permanent contract, but did not receive it? Or are you unsure about the agreements in your temporary contract? Do not hesitate to contact an employment law lawyer or legal advisor. They can assess your situation, explain your rights, and work with you to determine what steps are possible. This way you are not alone and you can be sure that you are not missing out on any rights.
What happens if you become ill during a temporary contract?
Do you become ill during the term of your temporary contract? In that case, the employer is obliged to continue paying your wages, usually at least 70% of your salary, for a maximum of two years. The contract itself simply ends on the agreed end date, even if you are still ill at that time. Does the temporary contract expire while you are still ill? Then the employer's continued payment of wages stops and UWV usually takes over this payment via the Sickness Benefits Act. Please note that the amount of this benefit may differ from your original salary. Are you unsure about your rights or is there a conflict? Have your situation assessed in a timely manner by an employment law lawyer, so that you are not faced with any surprises.Pensions and temporary contracts
Even with a temporary contract, you are in most cases entitled to participate in your employer's pension scheme. Your employer is obliged to inform you about this and to register you with the pension fund or pension provider with which he works. Whether exactly you participate and from when depends on the scheme in your industry or company (think, for example, of pension funds such as ABP or PME). Therefore, always check your employment contract and ask your employer how the pension for temporary employees is arranged. This way you avoid surprises and you know for sure where you stand in terms of pension accrual.What is a letter of intent and what does it mean for a mortgage application with a temporary contract?
Do you have a temporary contract and do you want to buy a house? The mortgage provider then often asks for more certainty about your income. In such a case, your employer can complete a so-called declaration of intent. But what exactly does this mean?- This statement is usually completed on the standard form of the employer statement and is an important part of the mortgage application if you do not yet have a permanent contract.
- Your employer is not obliged to provide a letter of intent. Sometimes an employer chooses to only mention the current contract status, without expressing expectations about the future.
- With a positive letter of intent you will get access to banks or financial institutions such as ING, Rabobank or ABN AMRO sometimes the same options as someone with a permanent contract. This increases your chance of getting a mortgage, but is not a guarantee.
- If a letter of intent is not received, the mortgage provider will assess your application based on your current contract and any other financial situation.
Mortgage with a temporary employment contract: what are the options?
A frequently asked question is whether you can get a mortgage with a temporary employment contract. The short answer: yes, but different rules apply than with a permanent contract.How does it work?
- Declaration of intent: Banks and mortgage providers often ask for a letter of intent for a temporary contract. This is a statement from your employer stating that it is the intention to convert your contract to permanent upon expiry (provided the same performance and unchanged circumstances).
- Good to know: Your employer is not obliged to provide this statement. It is therefore wise to discuss this in a timely manner before you start a mortgage application.
Is it possible without a declaration of intent?
Sometimes you can also get a mortgage without a letter of intent, but then the following is critically examined:- Your income history (for example, annual statements from the past three years)
- Or you work through an employment agency with a so-called perspective statement
- Whether you bring enough of your own money
Practical advice
- Be well prepared: Always collect your pay slips, annual statements and (if possible) a letter of intent from your employer.
- Consider seeking advice from an Independent Mortgage Advisor, such as De Hypotheker or Vereniging Eigen Huis, so you know exactly where you stand.
- Please note: a letter of intent is not a guarantee of a mortgage. The final decision rests with the mortgage provider.