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.
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.