The main rule
The successive fixed-term contracts rule (ketenregeling) is set out in art. 7:668a of the Dutch Civil Code (BW). An employee automatically gets a contract for an indefinite period if:
- you give them more than three temporary contracts in succession, or
- the temporary contracts together last longer than 36 months.
Whichever happens first counts. A fourth temporary contract is therefore by operation of law a permanent contract, even if the paper says otherwise.
When does something count as one chain?
Contracts count towards the same chain if there are six months or less between them. Only after a break of more than six months does a new chain begin.
Note: even if the employee keeps doing the same work for you in the meantime through an employment agency or another company, that can count. The law looks at reality, not only at who the employer is on paper.
Deviating in the collective labour agreement
A collective labour agreement (cao) can in certain cases deviate from the successive fixed-term contracts rule, for example for specific roles or sectors. If your company falls under a collective labour agreement, always check what it says first. Without a collective labour agreement, you cannot deviate from the rule yourself in the contract.
Do not forget the notice of renewal
If a temporary contract of six months or longer is ending, you must inform the employee in writing at least one month before the end whether you will renew the contract, and if so on what terms (aanzegging, art. 7:668 BW). If you do not, or do so too late, the employee can claim compensation.
Checklist for your next temporary contract
- Which contract in the chain is this?
- How many months do the contracts last together, including this contract?
- Was there a break of more than six months anywhere?
- Does your collective labour agreement deviate from the statutory rule?
- Is the notice of renewal for the current contract already in your calendar?