Employment contract
Employment contracts in Dutch employment law: a brief overview
In the Netherlands, employment contracts are an important legal instrument to define the relationship between employer and employee. Dutch employment law has several types of employment contracts, each with specific characteristics and legal rules.
The indefinite employment contract
The indefinite employment contract, also known as a permanent contract, is the most stable form of employment contract. Here, no end date is fixed, meaning the contract continues until one of the parties decides to terminate it. This type of contract offers the employee the most security, as the employer has to follow a legal dismissal route in case of dismissal, via the UWV or the subdistrict court.
The fixed-term employment contract
A fixed-term employment contract, also called a temporary contract, has a predetermined end date. This type of contract is suitable for situations in which the employer has a temporary need for extra staff, for instance due to seasonal work or a specific project. In the Netherlands, an employer may offer an employee a maximum of three temporary contracts in a three-year period. After these three contracts, or after three years, the employer must offer a permanent contract, unless there is an interval of more than six months between contracts.
The on-call agreement
An on-call contract, which includes zero-hours contracts and min-max contracts, offers flexibility to both employer and employee. With a zero-hours contract, the employee only works when the employer calls him, with no guarantee of a minimum number of hours. In a min-max contract, minimum and maximum hours are agreed. The Labour Market Balance Act (WAB), which came into force in 2020, strengthened the rights of on-call workers. For instance, after one year, workers must receive an offer for a fixed-hour contract based on the average number of hours worked in that year.
The employment contract for temporary workers
Temporary workers work through a temporary employment agency, which acts as a formal employer. This type of employment contract offers extreme flexibility, both for the employer and the employee, but is often accompanied by fewer securities for the employee. An important aspect of the temporary employment contract is the ‘phase’ in which the temporary worker finds himself. The rights and obligations of the temporary worker increase the longer they work through the agency.
Conclusion
Dutch employment law offers different types of employment contracts that meet the needs of both employers and employees. Whether it is security, flexibility or a balance between the two, each agreement has its own legal rules and protection. It is very important for both employers and employees to be well aware of the rights and obligations associated with the different employment contracts.
Permanent, temporary or flexible? Legal advice on employment contracts in Amsterdam
Do you need legal advice on types of employment contract? As an employment attorney in Amsterdam, I am ready to answer your questions and support you in making the right choices. Please feel free to contact me; together we will ensure a suitable solution that suits your situation.
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