When it comes to fixed-term employment contracts, there is one specific legal obligation that needs to be taken in consideration: the notification. This article will elaborate on the legal obligations for the employer and the legal rights of the employee.

What is a notification?

A fixed-term employment contract is defined by termination after fulfilment of the fixed-term mentioned in the employment contract. The concerning contract ends by operation of law. No notice nor notice period is required.

As the end of the fixed-term employment contract approaches, it is important for both parties to decide if and how they want to continue their employment relationship. The notification entails a written statement of the employer whether he wants to prolong the fixed-term employment contract or not. This gives clarity to the employee, who is depending on the employment contract. Not only for his livelihood, but in case of an expat, also for his or her work visa.

Mind you, this is not the same notice as applicable when terminating an indefinite employment contract. The notification of a fixed-term employment contract as meant here is called “aanzegging” in Dutch, while the notice of an indefinite employment contract is known as “opzegging”.

What are the criteria regarding the notification?

If the fixed-term employment contract has a duration of at least six months, the obligation of a notification is applicable.

The employer needs to inform the employee a month before the end of the fixed-term employment contract whether the former wants to continue the employment relationship with the latter. In case of continuation, the employer also needs to hand over the conditions of the successive employment contract in writing with the notification.

What if the employer does not live up to the legal obligations?

What if the employer sends the notification too late? In that case, a fine is also owed by the employer. The fine is decided by the period that exceeds the deadline of the notification. For instance, if the employer sends the notification to the employee a week later than obliged, the fine owed to the employee will be a week’s salary.

What if the employer does not send a notification at all? In case of an employment contract with a fixed number of working hours, the employer will have to pay a fine of a full month’s salary to the employee. In case there is no fixed number of working hours, the rules concerning the fine differ depending on the specific situation.

What if the employer does not send a notification at all and does not hand over the conditions of a successive employment contract, yet the employee continues to work after the previous contract has ended by operation of law? In this case, the employment contract will be prolonged by operation of law for the same fixed-term as the previous fixed-term employment contract, although limited to a maximum of a year. The same conditions of the previous fixed-term employment contract are applicable to the successive fixed-term employment contract as well.

Your situation

The notification has strict obligations and far-reaching consequences. Therefore, it is important to make sure you live up to the obligations as an employer or are aware of your rights as an employee. Apart from the legal implications, there might also be an applicable collective labour agreement entailing consequences concerning this subject. You are more welcome to contact one of our employment experts in case you have any questions.