Chain rule for fixed-term contracts (ketenregeling)

The chain rule (ketenregeling) limits how long an employer can keep an employee on successive fixed-term contracts. Once the limit is passed, the contract converts by operation of law into a contract of indefinite duration; no notice, agreement or court decision is needed for that to happen.

Legal basis

Article 7:668a of the Dutch Civil Code sets the limit at three fixed-term contracts, or a total duration of thirty-six months, whichever is reached first. Contracts count as part of the same chain if the interval between them is six months or less. An interval of more than six months breaks the chain and the count starts again.

A collective agreement may currently deviate, up to a maximum of six contracts over four years, and only for specified sectors and roles.

Change from 1 January 2028

The Wet meer zekerheid flexwerkers has been enacted and takes effect on 1 January 2028. From that date the interval that breaks the chain is extended from six months to thirty-six months, and the option to deviate by collective agreement on the number and duration of contracts disappears. A shorter interval of six months is retained for pupils and students working limited hours. Until 31 December 2027 the current rules continue to apply in full.

The practical effect of the change is that the familiar pattern of rehiring the same employee after a seven-month break will no longer reset the count.

Where it goes wrong

Employers most often miscount by ignoring earlier employment through an agency or a payroll company for the same work, which can count towards the chain. A second frequent problem is the contract that runs on after its end date: continuing to work without a new written contract renews the arrangement on the same terms and adds to the count.

Employers must also remember the separate obligation under Article 7:668 to notify the employee in writing, at least one month before the end date, whether a contract of six months or longer will be renewed and on what terms. Failure to do so carries a penalty of up to one month of salary.