Last updated on 27 October 2026

A permanent contract (vast contract) is an employment contract for an indefinite period. It has no end date and does not end automatically. An employer can only terminate it on reasonable grounds, with permission from the UWV or dissolution by the subdistrict court, or with the employee’s written consent (Articles 7:669 and 7:671 Dutch Civil Code).

Table of contents

Legal basis

A fixed-term contract ends by operation of law on the agreed date (Article 7:667 Dutch Civil Code). A permanent contract does not. You get a permanent contract either by agreeing on one or through the chain rule (ketenregeling) in Article 7:668a Dutch Civil Code.

Under the chain rule, a contract becomes permanent once you have had more than three consecutive fixed-term contracts, or once those contracts together last longer than 36 months. Contracts count as consecutive if there are no more than six months between them. A collective labour agreement (cao) may allow up to six contracts within 48 months for specific roles.

A permanent contract may include a probationary period of no more than two months, agreed in writing (Article 7:652 Dutch Civil Code). Dismissal requires one of the reasonable grounds listed in Article 7:669(3), such as economic reasons, long-term illness, poor performance or a breakdown of the working relationship.

How it works in practice

For dismissal on economic grounds or after long-term illness, the employer applies to the Employee Insurance Agency (UWV) for permission (Article 7:671a). For personal grounds, such as poor performance, the subdistrict court (kantonrechter) decides (Article 7:671b). Redeployment to another suitable position must also be impossible.

Many permanent contracts end with a settlement agreement (vaststellingsovereenkomst). If an employee consents to termination in writing, they may withdraw that consent within 14 days without giving a reason (Article 7:671(2)). If the employer fails to mention this right, the period becomes three weeks.

The Act on more security for flexible workers (Wet meer zekerheid flexwerkers) will change the chain rule. The six-month break will become three years. That part is expected to take effect on 1 January 2028. Until then, the current rules apply.

Common pitfalls

Employers sometimes assume a short break resets the chain. A gap of six months or less still counts. Agency work or a different employer for the same job can also count as a successive employer.

Employees often do not realise they already have a permanent contract. If you keep working after your fourth fixed-term contract, your contract counts as permanent. Signing a new ‘temporary’ contract does not change that.

A permanent contract is not a ban on dismissal. If you are dismissed, you are entitled to a notice period (Article 7:672 Dutch Civil Code) and usually to a transition payment (transitievergoeding).

Our employment lawyers assist employers and employees in matters involving permanent contracts and dismissal.