Employment contract

A fixed-term contract ends automatically at the agreed date, while a permanent contract continues until it is terminated. Terminating a permanent contract requires a valid ground and, without consent, a UWV permit or a court decision.

A fixed-term contract of six months or more triggers a notice obligation (aanzegplicht). Under Article 7:668 of the Dutch Civil Code, the employer must inform the employee in writing, at least one month before the end date, whether the contract will be continued. If the employer fails to do so, it owes compensation of up to one month's salary.

Every employee whose contract is terminated or not renewed at the employer's initiative is generally entitled to a transition payment. It amounts to one third of a monthly salary per year of service. In 2026, it is capped at 102,000 euros gross, or one annual salary if that is higher. You can read Book 7 of the Civil Code on wetten.overheid.nl (in Dutch).

Under the chain rule in Article 7:668a of the Dutch Civil Code, a contract becomes permanent from the fourth fixed-term contract, or once the chain exceeds 36 months. A gap of more than six months between contracts breaks the chain.

A collective labour agreement (cao) may deviate from these limits within statutory bounds. The chain rule also applies when a new employer is a successor of the previous one, for example through a temporary employment agency. Read more about fixed-term employment contracts.

A probation period is only valid if it is agreed in writing and is the same for both parties. Its maximum length depends on the type and duration of the contract.

Under Article 7:652 of the Dutch Civil Code, the following maximums apply:

• contract of six months or less: no probation period allowed;
• fixed-term contract of more than six months but less than two years: maximum one month;
• fixed-term contract of two years or more, or a permanent contract: maximum two months.

A longer probation period than allowed is void in its entirety. During a valid probation period, both parties can end the contract with immediate effect. A dismissal for a discriminatory reason remains unlawful. See probation period: Dutch rules.

A non-compete clause is valid only if it is agreed in writing with an adult employee. In a fixed-term contract, the employer must also explain in writing why compelling business interests require the clause.

These requirements follow from Article 7:653 of the Dutch Civil Code. Without the written justification, a non-compete in a fixed-term contract is void. Even a valid clause can be set aside or limited by the court if it unfairly harms the employee's interests. A non-solicitation clause, which only bans approaching clients or colleagues, is treated in the same way.

Employers should tailor the scope, duration and area to what they actually need to protect. Read more in non-compete clause: what you need to know and non-solicitation clause.

A good contract records at least the parties, position, place of work, working hours, salary, holidays, notice periods and any applicable cao. The employer must also give the employee this essential information in writing under Article 7:655 of the Dutch Civil Code.

Some rules apply regardless of what the contract says. Employees build up statutory holiday of four times their weekly working hours per year, under Article 7:634 of the Dutch Civil Code. The statutory notice period for employers runs from one to four months, depending on the length of employment. For employees, it is one month.

For international employees, also arrange the applicable law, secondment, pension and, where relevant, the conditions of the residence permit. Our article on employment contracts in the Netherlands gives a broader overview.

We work on an hourly rate that we agree with you in advance. The rate for a lawyer is 250 to 350 euros excluding VAT, and for a partner 300 to 400 euros excluding VAT.

For drafting a contract or template, we can give you a cost estimate in advance. A one-off advice meeting without further assistance costs 300 euros including VAT. External costs, such as the court fee (griffierecht), are charged separately. Legal aid exists through the Legal Aid Board (Raad voor Rechtsbijstand), but we do not work on that basis.