Renew employment contract, what was it like again?
Two important rules can play a role in extending the employment contract: the chain determination and the obligation to notify.
The chain determination The Work and Security Act stipulates that you can take out 3 temporary employment contracts in 2 years. After that, a permanent employment contract is mandatory. Between 2 contracts must be at least 6 months to circumvent the chain determination. Exception If the employee has a temporary contract of 2 years or longer, you may extend the contract once by 3 months.
The notification obligation In case of a temporary contract of half a year or longer, there is also a notification obligation. This means that you must inform an employee in time about the renewal of his contract. If you do not, you must pay the employee a compensation of one month's salary. The notice period is 1 month. In this, the employee must be informed in writing whether or not the contract will be renewed and under which conditions. The notice is proportional; if you give notice 2 weeks late you have to pay 2 weeks notice. The notification obligation does not apply to a temporary contract: • Without end date • For the duration of a project • To replace a sick colleague • With a term of 6 months or less These rules apply to all temporary employees employed in the company. This can be based on a one-year contract, zero-hours contract, on-call contract, min-max contract.