Fixed-term contracts

Succession of fixed-term employment contracts

Main rule

In the situation as per 1 July 2015, the “succession” is significantly reduced into the 3x2x6 rule. The employment contract for a definite period is automatically converted into an employment contract for an indefinite period if:

1. After 3 consecutive employment contracts a fourth consecutive employment contract is entered into; and/or
2. Multiple (2, 3 or more) temporary employment contracts have been entered into exceeding a total term of 2 years (previously 3 years); and
3. The consecutive employment contracts have not been interrupted for more than 6 months (previously 3 months).

The provisions on succession of fixed-term employment contracts do not apply:

1. To employees under 18 with a average employment of 12 hours or less a week; and
2. To employees that are pupils following a work-study program.

Deviation in collective labour agreement

The provisions on succession of fixed-term employment contracts still have the possibility to deviate in the collective labour agreement, but that possibility is severely limited. In the collective labour agreement, the number of contracts for a definite period can be extended to no more than six (previously unlimited) and the consecutive employment contract can be concluded for a maximum period of four years.

Any deviations in the collective labour agreement shall only be possible:

1. For agency workers;
2. For (appointed) board members of legal entities (but only concerning the total term of consecutive temporary employment contracts);
3. For positions or position groups where the intrinsic nature of the conduct of business requires an extension and/or increase of the provisions on succession of fixed-term employment contracts. This does not apply to normal fluctuations in the conduct of business due to economic circumstances, but rather to the necessity resulting from the nature of the conduct of business, respectively from the production process in the sector. This applies, for example, to media & culture, academia, and some positions in the hospitality sector;
4. For certain positions excluded by the Ministry of Social Affairs and Employment (professional football players). (also see: Deviations from the collective labour agreement in a nutshell).

Former situation (legislation prior to 1 July 2015)

The former provisions on succession of fixed-term employment contracts was also known as the 3x3x3 rule. Briefly, this means that the employment contract for a definite period is automatically converted into an employment contract for an indefinite period, if:

1. After 3 consecutive employment contracts a fourth consecutive employment contract is entered into; and/or
2. Multiple (2, 3 or more) temporary employment contracts have been entered into exceeding a total term of 3 years; and
3. The consecutive employment contracts have not been interrupted for more than 3 months.

Transitional law

The former legislation shall still apply to employment contracts concluded or renewed before 1 July 2015. The new provisions on succession of fixed-term employment contracts shall apply to all employment contracts concluded or renewed on or after 1 July 2015.

If the opportunity to deviate has been in the collective labour agreement, this opportunity shall be possible until the expiration date of that collective labour agreement, but no later than until 1 July 2016 (irrespective of whether the collective labour agreement remains in effect after 1 July 2016).

Practical pointers

• Due to the new rules, an employee will have a fixed-term employment contract sooner. It is therefore important for the employer to make a definitive choice about a possible permanent employment at an earlier date. Please consider this in hiring employees.
• There will be significant changes in the provisions on succession of fixed-term employment contracts in the collective labour agreements. It is therefore important at this time to examine whether certain positions in your company are eligible for deviations on the provisions on succession of fixed-term employment contracts. You can consider this in current and/or future negotiations on the collective labour agreement.
• If there are deviations in the collective labour agreement on the provisions on succession of fixed-term employment contracts, please examine critically whether this deviation is correct, to prevent employees from going to court and claim the existence of a permanent employment.
• In light of the new rules, the best way to act is to conclude three contracts with a total length of 23 months (for example, a contract for 7 months and 2 contracts for 8 months). There are multiple advantages for such a series of contracts, as you can see here.