Employment contract

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

You’ve just got a new job, or perhaps you’re extending an existing position. You’ve just received a new employment contract. Before you sign your employment contract, there are some key clauses to which you should pay attention.

This post was reviewed and updated on 13 July 2020

1. Is the contract temporary or permanent?

Go for a permanent contract 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 three 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. Check the notice period

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. Money for vacation?

Your salary should always include 8% mandatory vacation money. This is standard in Dutch employment contracts.

5. How many paid vacation days?

You must be given a minimum of 20 vacation days, excluding national holidays. The total number of vacation days offered may vary, but is a significant point of attention in your contract.

6. Is there a non-competition clause?

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. Termination

If the employer wants to terminate the contract, he/she must pay severance, known as a transition allowance. Employees are now entitled to a severance from day one of their contract. The allowance is 1/3rd of the monthly salary per worked year. The higher entitlements for older employees and for employees with an employment of more than 10 years have been cancelled.

More information?

If you’d like to learn more about key considerations when starting a new job, you may also enjoy our new white paper about working in the Netherlands.

 

If in doubt, reach out

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, send us your question directly, or request a free legal consultation.