Notice Period in the Netherlands (Opzegtermijn)

If you or your employer want to end the employment contract, a notice period usually applies. The notice period is the time between the moment of giving notice and the actual end of the contract. Understanding the rules around notice periods is essential for protecting your rights and preserving your entitlement to unemployment benefits. In this article, we explain all the rules regarding notice periods under Dutch employment law.

What is a notice period?

A notice period (opzegtermijn) is the period that must be observed between the moment of giving notice and the date on which the employment contract actually ends. The purpose of the notice period is to give both parties time to prepare for the end of the employment relationship: as an employee, you can look for a new job, while your employer can arrange a replacement or reorganise the work.

The legal basis for the notice period is found in Articles 7:671 and 7:672 of the Dutch Civil Code (Burgerlijk Wetboek, BW). These articles set out when and how an employment contract can be terminated and what notice periods must be observed. The rules are mandatory, meaning they apply regardless of what the parties may have agreed, unless a specific deviation is permitted by law.

A notice period applies in several situations: when your employer dismisses you (with UWV permission or after a court ruling), when you resign yourself, or indirectly when your employment is terminated by settlement agreement. In this last case, the so-called "fictitious notice period" plays a crucial role for your unemployment benefits.

Statutory notice periods

The statutory notice period for the employer depends on the employee's length of service with that employer. Article 7:672 paragraph 2 BW sets out the following notice periods for the employer:

• Less than 5 years of service: 1 month notice
• 5 to 10 years of service: 2 months notice
• 10 to 15 years of service: 3 months notice
• 15 years of service or more: 4 months notice

These periods are minimum periods for the employer. It is important to realise that the length of service includes the entire period of employment with the same employer, including any preceding temporary contracts if there was no interruption of more than six months.

For you as an employee, the statutory notice period is always one month under Article 7:672 paragraph 3 BW. This applies regardless of your length of service. The idea behind this asymmetry is that the employer, who has greater economic power, should give the employee more time to find a new position, especially after many years of service.

Employer vs employee notice period

As explained above, there is an important difference between the notice period that applies to the employer and the one that applies to you. The employer's notice period is linked to the employee's years of service (1, 2, 3, or 4 months), while the employee's notice period is always one month by default.

The employer's notice period can never be shorter than double the employee's notice period under Article 7:672 paragraph 6 BW. This means that if your contractual notice period as an employee is extended to, say, two months, your employer's notice period must be at least four months. This rule is designed to prevent employers from extending the employee's notice period without also extending their own.

It is also important to understand that the employer can only give notice of dismissal after obtaining permission from the UWV (in the case of economic dismissal or long-term illness) or after a court has dissolved the contract. A settlement agreement bypasses these procedures, but the notice period still plays a role through the "fictitious notice period," which we discuss below.

Contractual deviations

Although the statutory notice periods provide a clear framework, it is possible to deviate from them in the employment contract, subject to certain conditions. The law allows deviations in several directions:

Extending the employee's notice period

Under Article 7:672 paragraph 6 BW, the employee's notice period can be extended in the employment contract, provided that this is agreed in writing and that the employer's notice period is at least double the employee's notice period. For example, if your notice period is extended to two months, the employer's notice period must be at least four months. This requirement protects you from disproportionate restrictions.

Shortening the employer's notice period

The employer's notice period can be shortened in a collective agreement (CAO) under Article 7:672 paragraph 8 BW, but it can never be less than one month. Shortening the employer's notice period purely through the individual employment contract (without a CAO basis) is not permitted.

Extending the employer's notice period

The employer's notice period can always be extended in the employment contract or collective agreement. This only benefits the employee.

Notice period in collective agreements (CAO)

A collective agreement (collectieve arbeidsovereenkomst, CAO) can contain different rules regarding notice periods. Under Article 7:672 paragraph 8 BW, a CAO may shorten the employer's notice period to a minimum of one month and may also set different notice periods for the employee, subject to conditions.

If a CAO applies to your employment, the notice period provisions in the CAO take precedence over both the statutory rules and any provisions in your individual employment contract (unless the individual contract is more favourable to you). You should therefore always check whether a CAO applies to your sector or company and what it says about notice periods.

Some CAOs contain specific provisions for different categories of employees. For example, a CAO might provide that managers have a longer notice period than other employees, or that different periods apply during a probation period. Always consult the specific CAO text for the precise rules that apply to your situation.

Fictitious notice period in settlement agreements

When your employment ends through a settlement agreement, there is technically no "notice" given by either party. However, for the purpose of unemployment benefits (WW), the UWV applies a so-called fictitious notice period (fictieve opzegtermijn). This is one of the most important concepts to understand if you are negotiating a settlement agreement.

The fictitious notice period is the period during which the UWV considers you as "still employed," even though you may have already stopped working. During this period, you cannot receive unemployment benefits. The length of the fictitious notice period corresponds to the statutory or contractual notice period that the employer would have had to observe if they had dismissed you via the regular route.

How is the fictitious notice period calculated?

The calculation works as follows:

1. Determine the applicable notice period (statutory or contractual, whichever applies).
2. The notice period starts on the first day of the month following the date of the agreement (or the date that the employer gave notice of the intention to terminate).
3. The end of the fictitious notice period is the earliest date on which the employer could have validly terminated the contract.
4. One month is deducted from this period if the UWV procedure (which is being bypassed by the settlement agreement) would normally be required. This deduction represents the time the UWV procedure would have taken.

This is precisely why it is so important that the end date in your settlement agreement correctly accounts for the fictitious notice period. If the end date is too early, you may face a period without income or benefits. A lawyer can verify this calculation for you as part of a free agreement review.

Notice period and unemployment benefits

The notice period has a direct impact on your right to unemployment benefits (WW-uitkering). The UWV applies the fictitious notice period rule to determine when your entitlement to benefits starts. Even if your employment actually ends earlier (for example, because you are released from duties), the UWV will not pay benefits during the fictitious notice period.

The key rule is: your unemployment benefits do not start until the fictitious notice period has elapsed, regardless of when you actually stopped working. This means that if the end date in your settlement agreement is before the end of the fictitious notice period, you may have to wait before you can receive benefits. During this waiting period, you have no income from your employer (because the contract has ended) and no income from the UWV.

To protect your benefit rights, the end date in your settlement agreement should ideally be set at or after the end of the fictitious notice period. This way, you continue to receive your salary from your employer until the benefits start. Your employer may release you from duties during this period, meaning you do not have to work but still receive your salary.

Calculating the end date

Correctly calculating the end date of your employment is crucial, both when your employer gives notice and when you terminate the contract by settlement agreement. Here are the key rules for calculating the end date:

When notice is given by the employer

Under Article 7:672 paragraph 1 BW, notice must generally be given against the end of the month. This means the end date is always the last day of a calendar month, unless a different arrangement has been agreed or follows from custom. The notice period starts running from the first day after the notice is given.

For example: if your employer gives notice on 14 March and the applicable notice period is 2 months, the employment ends on 31 May (the end of the month that falls at least 2 months after the notice date).

When you resign

The same rules apply: you must give notice against the end of the month, and the statutory notice period for the employee is one month. If you give notice on 10 January, your employment ends on 28 (or 29) February.

In a settlement agreement

The end date is negotiable, but it should take the fictitious notice period into account. As explained above, setting the end date too early can result in a gap period without income or benefits.

Special situations

Notice period during probation

During the probation period (proeftijd), no notice period applies. Both the employer and the employee can terminate the employment contract immediately, without giving notice. The probation period can be a maximum of one month for temporary contracts of up to two years and a maximum of two months for permanent contracts or temporary contracts of more than two years (Article 7:652 BW).

Notice period and summary dismissal

In the case of summary dismissal (ontslag op staande voet), the employer terminates the contract with immediate effect. No notice period applies. However, summary dismissal is only valid if there is an "urgent reason" (dringende reden) and the dismissal is given immediately after the discovery of that reason. If a summary dismissal is found to be invalid, the regular notice period rules apply retroactively.

Notice period and long-term illness

If you have been ill for two years and the employer obtains UWV permission to dismiss you, the employer's notice period is reduced by the duration of the UWV procedure (with a minimum of one month remaining). This is because the UWV procedure itself already takes several weeks, and the legislator did not want the employee to have to wait even longer.

Notice period and bankruptcy

In the case of bankruptcy, the bankruptcy trustee (curator) can terminate the employment contract with a maximum notice period of six weeks, regardless of the employee's length of service (Article 40 Faillissementswet). This is a significant deviation from the normal rules.

Notice period and retirement

The employment contract can be terminated on or after the state pension age (AOW-leeftijd) with a notice period of one month, unless a different period has been agreed (Article 7:672 paragraph 4 BW). This applies regardless of the employee's length of service.

Frequently asked questions about notice periods

What is the standard notice period for employees in the Netherlands?

The standard statutory notice period for employees is one month. For employers, the period depends on the employee's length of service: 1 month (less than 5 years), 2 months (5-10 years), 3 months (10-15 years), or 4 months (15+ years). The employment contract or collective agreement may contain different provisions.

Can my employer shorten the notice period?

The employer cannot unilaterally shorten the notice period through the employment contract. Only a collective agreement (CAO) can shorten the employer's notice period, to a minimum of one month. If your employer dismisses you without observing the correct notice period, this is called "irregular termination" and you may be entitled to compensation.

What happens if I do not observe my notice period?

If you resign without observing the correct notice period, this is called "irregular termination" on your part. Your employer can claim compensation equal to the salary over the notice period that you should have observed (Article 7:677 paragraph 2 BW). In practice, employers do not always pursue this, but the risk exists.

Does the notice period apply to temporary contracts?

A temporary contract ends automatically on the agreed end date without a notice period. However, if the temporary contract contains an "early termination clause" (tussentijds opzegbeding), the contract can be terminated before the end date, and in that case the regular notice period rules apply. Note also that for contracts of six months or longer, the employer has a notification obligation (aanzegtermijn) of one month before the end date.

What is the fictitious notice period?

The fictitious notice period is the period applied by the UWV when your employment ends through a settlement agreement. It corresponds to the notice period the employer would have had to observe in a regular dismissal. Your unemployment benefits do not start until this period has elapsed, so the end date in your settlement agreement should take it into account.

Can I be released from duties during the notice period?

Yes, it is common for employers to release employees from duties during the notice period, especially in the context of a settlement agreement. When you are released from duties, you do not have to work, but you continue to receive your full salary. This is often negotiated as part of the termination terms.