The seven things you need to check in your new employment contract

Godelijn Boonman

You just got a new job or maybe you’re extending an existing position. This includes a new employment contract. Before you sign your employment contract, there are certain things you should pay attention to: 

1. Is the contract temporary or permanent? Go for permanent if possible. Dutch law offers a great deal of protection to permanent employees. An employer cannot terminate a permanent contract unilaterally. He/she needs consent from the employee or permission from the cantonal judge or UWV. If a permanent contract is not a possibility, remember that the maximum period for a temporary contract is two years and a maximum of three temporary contracts are permitted.

2. Is there a trial period? If so, an employer can dismiss you without giving a reason. However, a trial period is not permitted in a temporary contract for six months or less. For a temporary contract longer than six months, the trial period may only be one month. If the contract is permanent, the maximum length of the trial period is two months. Employer and employee must agree upon this in writing.

3. The notice period for an employer wanting to end an employment contract depends on the employee’s years of employment.

  • Less than 5 years: one month;
  • Between 5 and 10 years: two months;
  • Between 10 and 15 years: three months;
  • More than 15 years: four months.

An employee’s notice period is, in principle, always one month. An employer may agree upon another notice period but an employer’s notice period must always be twice that of the employee’s and has a maximum of six months. This notice period must be taken into account when terminating an agreement.

4. Your salary should always include 8% mandatory vacation money.

5. You must be given a minimum of 20 vacation days, excluding national holidays.

6. Don’t just sign a contract with non-compete or non-solicitation clauses. Once agreed upon, the clauses are binding and can be a great nuisance when one wants to leave for greener pastures. Ideally, do not agree to these clauses. And note that they are not allowed in a temporary contract unless the employer can demonstrate a need for them.

7. If you have two years of service, and the employer wants to terminate the contract, he/she must pay severance, known as a transition allowance. This has changed in recent years and the allowance is far lower than the cantonal court formula which was previously the rule. So, try to negotiate a golden parachute if you are in a position to do so. You should aim for something like a month or more of salary for each year of service.

Contact

Are you unsure if you have negotiated for the best arrangements in your employment contract? If so, please do not hesitate to contact one of our specialised employment lawyers.

Update article: December 2017.

This article was also published on the ACCESS website.

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