Notification period

Legislation as per 1 January 2015

As per 1 January 2015, employers are obliged to inform ("notify") employees at least one month before expiry of the temporary employment contract whether the employment contract is to be renewed, and if so, under which conditions. If the employer fails to do so, he has to pay a penalty equal to the amount of one gross monthly salary (without holiday allowance or other allowances). If the notification is too late, there is an obligation to pay a proportional amount. The employee is entitled to claim the notification fee from the employer until 2 months after expiry of the employment contract. If he fails to do so in time, his right to claim the penalty lapses. Also if the employer renews the employment contract, the aforementioned notification period applies. After expiry of the employment contract, the employee can claim the notification penalty within 2 months.

There are three exceptions where the notification obligation does not apply:

1. If this concerns a temporary employment contract for less than 6 months;
2. If the termination date cannot be determined, for example if the employment contract applies to the length of a project
3. In case of substitution of an employee, for example during maternity leave.

Please note: if the employment contract is renewed, the notification obligation as described above also applies. Furthermore, if the employer wishes to renew the employment contract, but fails to state under which conditions, the employment contract shall be considered as continued under the same conditions, but for a term longer than 1 year.

Practical pointers

• Prevent the notification period by entering into employment contracts for less than 6 months. Please note due to the term it is impossible to include a stipulation for a trial period in such a contract.
• Arrange your administration to include the terms that apply from 1 January 2015, so you do not forget these terms. If you are late, you have to pay a notification fee. To prevent such payments, you can use our notification tool. The notification tool monitors the terms that apply to the provisions on succession of fixed-term employment contracts, it automatically warns you when the notification term approaches and offers a standard letter, customized for and with you, for renewal and/or non-renewal. If you are interested in this tool, please contact Katja van Kranenburg.
• Read best use of temporary contracts under the new law.

Alert: recently, the Cantonal Court in Utrecht stated that a clause in a Collective Bargaining Agreement stipulating that the termination of the employment contract is notified in advance is valid. However, the question still remains if a notification in advance is in compliance with the intention of the legislator.