A fixed-term contract ends automatically on the agreed end date; the employer needs no reason, no UWV permission and no court order. What the employer does owe is written notice at least one month before the end date for contracts of six months or longer (Article 7:668 of the Dutch Civil Code, BW), and in almost every case a transition payment (transitievergoeding).
The main exceptions: after more than three contracts or more than 36 months, the last contract may already be permanent under the chain rule, and a non-renewal based on pregnancy, illness or another protected ground is discrimination.
Table of contents
How does a fixed-term contract end?
It ends by operation of law on the agreed date (Article 7:667 BW). No notice of termination is needed and the dismissal protection for permanent contracts does not apply.
For a permanent contract, the employer needs UWV permission on economic grounds or after long-term illness, or a dissolution by the subdistrict court (kantonrechter) on one of the grounds in Article 7:669 BW. None of this applies when a temporary contract simply expires. A notice period matters only if the contract allows early termination and one party wants to end it before the end date. The employer does not have to give a reason, but a short written explanation prevents suspicion that the real reason was a prohibited one.
What is the notice duty (aanzegplicht)?
For a fixed-term contract of six months or longer, the employer must inform the employee in writing, no later than one month before the end date, whether the contract will be continued and, if so, on what terms (Article 7:668(1) BW). A contract of exactly six months falls within the rule; a five-month contract does not.
The duty does not apply to a contract that ends on an event rather than a calendar date, such as the end of a project, or to a contract with a temporary-agency clause (uitzendbeding). A letter is the safest form; an e-mail is generally accepted if the employer can prove receipt. A conversation in the corridor does not count, and the employer bears the burden of proof. The employer may also state in the contract itself that it will not be continued.
The notice is not a termination. Giving it late does not extend the contract; it only leads to compensation.
What does the employer owe if the notice is late or missing?
No notice at all costs one month’s salary; late notice costs one day’s salary for each day of delay. This is the notice compensation (aanzegvergoeding) of Article 7:668(3) BW, and no compensation is owed if the employer is bankrupt, in a suspension of payments or in a debt restructuring scheme.
The employee does not have to prove any loss. The basis is the gross monthly salary; for variable hours the average hours are used. The claim lapses three months after the day on which the notice duty arose, which is one month before the end date (Article 7:686a BW). This is a lapse period (vervaltermijn): a letter does not stop it, only a petition to the subdistrict court does. In practice you have about two months after the contract ends. See also our article on rights of employees when the employer goes bankrupt.
Are you entitled to a transition payment?
Yes, if the contract is not continued at the employer’s initiative. Under Article 7:673 BW the right exists from the first day of employment.
The payment is one third of the gross monthly salary per year of service, calculated pro rata over the actual duration. A statutory cap applies that is adjusted every year, or one annual salary if that is higher; check the current figure on the government website. No payment is owed for seriously culpable conduct of the employee, from state pension age, in bankruptcy or suspension of payments, or if the employee declined an offered renewal. That is why an offer of renewal should always be put in writing.
Statutory interest runs from one month after the contract ended. The claim lapses three months after the end date (Article 7:686a BW), a different starting point than for the notice compensation.
When does a temporary contract become permanent?
Under the chain rule (ketenregeling) of Article 7:668a BW, the contract becomes permanent once more than three consecutive fixed-term contracts have been concluded or the chain has lasted longer than 36 months. Contracts are consecutive if the gap between them is six months or less.
A collective labour agreement (CAO) may deviate within statutory limits, so always check it. The chain also continues with a successor employer (opvolgend werkgeverschap): agency contracts for substantially the same work count when the employee is later hired directly.
A second trap is tacit continuation. If the employee continues working after the end date and the employer does not object, the contract is continued on the same terms for the same period, up to one year (Article 7:668(4) BW). That continued contract counts as a new link in the chain.
Where does the employer’s freedom stop?
The employer may let the contract of a sick or pregnant employee expire, because the prohibitions on termination in Article 7:670 BW apply to notice, not to expiry. It may not base the decision on illness, pregnancy or another protected ground.
Non-renewal because of pregnancy is direct discrimination on grounds of sex under the equal treatment legislation. The employee can ask the Netherlands Institute for Human Rights (College voor de Rechten van de Mens) for an opinion or claim damages before the subdistrict court. Where the contract was not continued as a result of seriously culpable conduct by the employer, the court can also award a fair compensation (billijke vergoeding); the threshold is high.
Can you claim unemployment benefit (WW)?
In principle, yes: an employee whose contract is not renewed by the employer is not culpably unemployed. You must have worked at least 26 of the 36 weeks before unemployment and lose at least five working hours a week, or half your hours if you worked fewer than ten.
Apply to the UWV no later than one week after your first day of unemployment. Declining a renewal on essentially the same terms can lead the UWV to refuse benefit, so assess the offer before you say no. If you are ill on the end date, the contract still ends and the UWV pays sickness benefit under the Sickness Benefits Act (Ziektewet).
What should you check as an employee?
- Is the contract six months or longer, and does it end on a fixed date without an agency clause?
- Did you receive written notice at least one month before the end date? If not, diarise the three-month lapse date.
- How many contracts and months does the chain count, including agency periods?
- Does the final payslip include the transition payment, untaken holiday and holiday allowance?
- Have you applied for WW and requested a reference (getuigschrift) under Article 7:656 BW?
- Do not keep working after the end date unless you want a tacit continuation.
What should you check as an employer?
- Keep a register of end dates with a reminder six weeks in advance.
- Send the notice in writing, with proof of receipt, stating whether and on what terms the contract continues.
- Count the chain, including agency contracts and a predecessor employer, before offering a new contract.
- Make sure nobody works past the end date without a signed new contract.
- Pay the transition payment with the final settlement; interest runs from one month after the end.
What can we do for you with a contract that is not renewed?
Our employment lawyers advise employees and employers on the end of fixed-term contracts; our employment law guides cover related topics.
- We check the notice duty and the chain rule against your contract history.
- We calculate the notice compensation and the transition payment.
- We send the written claim and file the petition before the lapse date.
- We assess whether a non-renewal is discriminatory and conduct the case before the Institute or the court.
- We draft compliant notice letters and end-date procedures for employers.
Summary
- A fixed-term contract ends automatically; no reason or permission is needed.
- For contracts of six months or longer, written notice is due one month before the end date; failure costs up to one month’s salary.
- The transition payment is owed from day one when the employer does not renew.
- Claims lapse after three months; only a petition to the subdistrict court stops the clock.
- More than three contracts or more than 36 months makes the contract permanent.
Frequently asked questions
Does my employer have to give a reason for not renewing my contract?
No. A fixed-term contract ends by operation of law on the agreed date. The decision may not, however, be based on a protected ground such as pregnancy or illness.
What is the notice duty when a temporary contract is not renewed?
For contracts of six months or longer, the employer must inform you in writing at least one month before the end date whether the contract will be continued and on what terms. Late notice costs one day of salary per day of delay, up to one month (Article 7:668 BW).
Am I entitled to a transition payment if my contract is not renewed?
Yes, if the employer does not continue the contract, from the first day of employment. No payment is due if you declined an offered renewal or were seriously culpable.
Can I claim unemployment benefit (WW) after my contract is not renewed?
Usually yes, if you meet the weeks requirement of 26 out of 36 weeks. Apply to the UWV no later than one week after your first day of unemployment.
What should I do if I receive notice of non-renewal verbally?
Ask for written confirmation. Oral notice does not meet Article 7:668 BW, so you may be entitled to the notice compensation; claim it within three months of the day the notice was due.
