Temporary Contract in the Netherlands (Tijdelijk Contract)

A temporary employment contract (tijdelijk contract or bepaalde-tijdcontract) is one of the most common forms of employment in the Netherlands. As an employee with a temporary contract, you have specific rights and protections under Dutch law. Understanding these rules is essential, particularly regarding the chain rule, notification obligations, conversion to a permanent contract, and your rights upon termination. In this article, we explain everything you need to know.

What is a temporary contract?

A temporary employment contract (arbeidsovereenkomst voor bepaalde tijd) is a contract that ends automatically on an agreed date or upon the occurrence of a specified event. Unlike a permanent contract, a temporary contract does not require notice of termination — it simply expires by operation of law (van rechtswege) on the agreed end date.

The legal framework for temporary contracts is found in Book 7, Title 10 of the Dutch Civil Code (BW), with specific provisions in Articles 7:667 through 7:668a. These articles regulate the duration, renewal, and termination of temporary contracts, as well as the important chain rule that limits the number and total duration of consecutive temporary contracts.

Temporary contracts are widely used in the Netherlands for various reasons: to cover temporary increases in workload, to replace employees on leave, to allow both parties to evaluate the working relationship, or simply as a standard first step before offering a permanent position. Regardless of the reason, your rights as a temporary employee are firmly established by law.

It is important to understand that having a temporary contract does not mean you have fewer rights during the contract period. During the term of the contract, you are entitled to the same working conditions, salary, and benefits as comparable permanent employees. The main difference lies in what happens at the end of the contract and in the rules around termination.

The chain rule (ketenregeling)

The chain rule (ketenregeling) is one of the most important protections for employees with temporary contracts. It limits the number of consecutive temporary contracts an employer can offer before the contract automatically converts into a permanent contract. The chain rule is set out in Article 7:668a BW.

Under the current rules, a temporary contract automatically becomes a permanent contract in either of the following situations:

• More than 3 consecutive contracts: If you are offered a fourth consecutive temporary contract with the same employer, the fourth contract is automatically a permanent contract.
• More than 3 years total duration: If the total duration of consecutive temporary contracts exceeds 36 months (3 years), the contract that causes the threshold to be exceeded automatically becomes a permanent contract from that point.

The key word here is "consecutive." The chain is broken when there is an interruption of more than 6 months between two contracts. If the gap between two contracts exceeds six months, the chain starts over, and the employer can again offer up to three temporary contracts within a maximum of three years.

Exceptions to the chain rule

There are several exceptions and special provisions:

• Collective agreements (CAO): A CAO can extend the chain rule to a maximum of 6 consecutive contracts within a period of up to 4 years, but only for specific functions where this is objectively justified by the nature of the work.
• Educational sector: Special rules apply for teachers and temporary positions in education.
• Employees under 18: The chain rule does not apply to employees who work on average 12 hours or fewer per week and are under 18.
• Apprenticeships: Contracts for apprenticeships (BBL-overeenkomsten) do not count towards the chain.
• Temporary agency workers: The chain rule for temporary agency workers (uitzendkrachten) can be deviated from in the applicable CAO for temporary agency work.

Notification obligation (aanzegtermijn)

The notification obligation (aanzegtermijn) requires your employer to inform you in writing at least one month before the end date of your temporary contract whether the contract will be renewed and, if so, under what conditions. This obligation is laid down in Article 7:668 BW and applies to all temporary contracts with a duration of six months or longer.

The notification must be made in writing. An email is sufficient, but a verbal statement is not. The employer must clearly state one of the following:

• The contract will not be renewed (the employment ends on the agreed date).
• The contract will be renewed, and the conditions of the new contract are specified.
• The employer is not yet able to confirm whether the contract will be renewed (this counts as notification that the employer is considering the matter, but is not a definitive answer).

Consequences of failing to notify

If the employer fails to provide timely notification, the consequences depend on the situation:

• No notification at all: The employer owes you compensation equal to one month's gross salary.
• Late notification: The employer owes you compensation proportionate to the delay. For example, if the notification is two weeks late, the compensation is half a month's gross salary.

This compensation is in addition to your regular salary and is due regardless of whether the contract is renewed or not. The claim for this compensation must be filed within two months after the end of the temporary contract (Article 7:686a paragraph 4 sub b BW). After this period, the claim expires.

It is important to realise that the failure to notify does not automatically extend or renew the contract. The contract still ends on the agreed date. The only consequence is the financial compensation the employer owes you. If you believe you are entitled to this compensation, you should claim it in writing from your employer, preferably before the two-month deadline expires.

Conversion to a permanent contract

There are several ways in which a temporary contract can be converted into a permanent contract:

Automatic conversion through the chain rule

As discussed above, a temporary contract automatically becomes a permanent contract if the chain rule limits (3 contracts or 36 months) are exceeded. This conversion happens by operation of law, meaning it applies automatically even if neither party intended it. Your employer cannot undo this conversion by simply putting "temporary contract" on the new agreement.

Implied permanent contract

In some cases, even without exceeding the chain rule limits, a court may conclude that a permanent employment relationship has arisen. This can happen if the employer has created a reasonable expectation that the employment would continue permanently, for example through statements, behaviour, or a pattern of always renewing contracts in the past.

Conversion through continued work

If you continue to work after the end date of your temporary contract without any objection from your employer, the contract may be deemed to have been tacitly renewed under Article 7:668 paragraph 4 BW. The renewed contract is considered to have the same conditions as the previous one, with a maximum duration equal to the previous contract (but no longer than one year). This tacit renewal also counts towards the chain rule.

Probation period rules

The probation period (proeftijd) in a temporary contract is subject to strict rules under Article 7:652 BW. The rules differ depending on the duration of the contract:

• Temporary contract of 6 months or shorter: No probation period is permitted. Any probation clause is null and void.
• Temporary contract longer than 6 months but up to 2 years: Maximum probation period of 1 month.
• Temporary contract of 2 years or longer: Maximum probation period of 2 months.

The probation period must be agreed in writing and must be the same for both parties. During the probation period, both you and your employer can terminate the contract immediately without giving notice. No notice period applies, and no permission from the UWV or court is needed.

An important limitation: a probation period is not permitted in a second or subsequent temporary contract with the same employer, unless the new contract requires clearly different skills or responsibilities. This prevents employers from using repeated probation periods to circumvent employment protection.

Non-compete clause in temporary contracts

Since 1 January 2015, the rules for non-compete clauses in temporary contracts are significantly stricter than for permanent contracts. Under Article 7:653 paragraph 2 BW, a non-compete clause in a temporary contract is only valid if the employer has included a written motivation in the clause itself, explaining why the clause is necessary to protect the employer's substantial business or service interests.

This requirement reflects the legislator's view that it is unfair to restrict an employee's career options after a temporary contract that already limits the duration of employment. The motivation must be specific: a general statement that the company "has important interests" is not sufficient.

If the employer has not provided such a motivation, the non-compete clause is null and void from the start. You are not bound by it and can freely move to a competitor or start your own business. In practice, many employers fail to provide adequate motivation, making non-compete clauses in temporary contracts frequently unenforceable.

Early termination

A temporary contract is designed to last until the agreed end date. However, early termination is possible in certain circumstances:

Early termination clause (tussentijds opzegbeding)

If the contract contains an early termination clause, both you and your employer can terminate the contract before the end date, subject to the regular notice period rules. The employer also needs a valid reason and must follow the regular dismissal procedure (UWV permission or court ruling), unless the termination is by settlement agreement.

Without an early termination clause

If there is no early termination clause, the contract cannot be terminated before the end date under normal circumstances. If the employer nonetheless terminates the contract early without such a clause, you are entitled to compensation equal to the salary you would have earned until the end date of the contract. Similarly, if you leave early without such a clause, your employer can claim compensation for the remaining term.

Summary dismissal

Even without an early termination clause, the employer can summarily dismiss you (ontslag op staande voet) for an urgent reason. However, the requirements for summary dismissal are very strict: there must be an urgent reason, the dismissal must be given immediately, and the reason must be communicated immediately. If a summary dismissal is found to be invalid, you may be entitled to significant compensation.

Mutual consent (settlement agreement)

You and your employer can always agree to end the contract early by signing a settlement agreement, regardless of whether the contract contains an early termination clause. In this case, the terms of the termination (end date, compensation, non-compete clause, etc.) are negotiated between the parties.

Severance pay rights

As an employee with a temporary contract, you have the right to severance pay (transitievergoeding) if your employer does not renew your contract, provided you have been employed for at least one day. This right was established by the Wet Arbeidsmarkt in Balans (WAB) which came into effect on 1 January 2020.

The severance pay is calculated as one-third of your monthly salary for each year of service. For partial years, the amount is calculated proportionally. For example, if you earned EUR 3,000 per month and worked for 2 years, your severance pay would be EUR 2,000 (2 x 1/3 x EUR 3,000).

You are entitled to severance pay in the following situations:

• Your employer does not renew your temporary contract.
• Your employer terminates the contract early (with an early termination clause).
• Your employer does not offer you a new contract under conditions that are at least equivalent to the previous one.

You are not entitled to severance pay if you resign yourself, if you are dismissed for seriously culpable behaviour, or if you are offered a new contract under at least equivalent conditions and you refuse it. Note that with a settlement agreement, the compensation is negotiable and may be higher or lower than the statutory severance pay.

Non-renewal and unemployment benefits

When your temporary contract is not renewed, you generally have the right to unemployment benefits (WW-uitkering), provided you meet the standard eligibility requirements. The non-renewal of a temporary contract is generally not considered "culpable unemployment" (verwijtbare werkloosheid), so the UWV will typically not refuse your benefits.

To be eligible for unemployment benefits, you must meet the following conditions:

• Loss of working hours: You must have lost at least 5 hours per week (or half your working hours if you worked less than 10 hours).
• Availability: You must be available for work and actively seeking new employment.
• Weeks requirement (wekeneis): You must have worked at least 26 out of the 36 weeks before the first day of unemployment.
• No culpable unemployment: The unemployment must not be your own fault.

Register as a jobseeker with the UWV on the first working day after the end of your contract. Late registration can result in a reduction of your benefits.

Frequently asked questions about temporary contracts

How many temporary contracts can I get from the same employer?

Under the chain rule, you can receive a maximum of 3 consecutive temporary contracts within a period of 3 years. If you receive a fourth contract, or if the total duration exceeds 36 months, the contract automatically becomes a permanent contract. A collective agreement (CAO) may set different limits.

When must my employer notify me about renewal?

For temporary contracts of six months or longer, your employer must inform you in writing at least one month before the end date whether the contract will be renewed. Failure to do so entitles you to compensation of up to one month's gross salary.

Am I entitled to severance pay when my temporary contract expires?

Yes. Since 1 January 2020, you are entitled to severance pay from the first day of employment if the employer does not renew the contract. The amount is one-third of your monthly salary per year of service.

Can I be dismissed during a temporary contract?

Only if the contract contains an early termination clause (tussentijds opzegbeding), and even then, the employer must follow the regular dismissal procedure. Without such a clause, early termination by the employer is a breach of contract, and you are entitled to compensation for the remaining contract period.

Is a probation period allowed in a temporary contract?

Only in temporary contracts longer than six months. For contracts up to two years, the maximum probation period is one month; for contracts of two years or longer, it is two months. No probation period is allowed in a second or subsequent contract with the same employer, unless the role requires clearly different skills.

What happens to my non-compete clause when my temporary contract ends?

A non-compete clause in a temporary contract is only valid if it includes a written motivation from the employer explaining why the restriction is necessary. If no motivation is provided, the clause is null and void. If valid, the clause remains in force after the contract ends, unless it is lifted in a settlement agreement.