What Is a Fixed-Term Contract under Dutch Law?
A Dutch employment contract is either for a fixed term (arbeidsovereenkomst voor bepaalde tijd) or permanent (voor onbepaalde tijd). A fixed-term contract ends automatically when the term expires, without notice and without UWV or the court, but for contracts of six months or more the employer must say in writing at least a month before the end whether it will be renewed. A permanent contract only ends by notice, agreement or a court decision. Successive fixed-term contracts turn into a permanent one under the chain rule: after more than three contracts, or after more than 36 months, with gaps of no more than six months. From 1 January 2028 that gap becomes 36 months.
Fixed-term and permanent contracts at a glance
- End of a fixed-term contract: automatic on the agreed date (Article 7:667(1) of the Dutch Civil Code). No notice, no dismissal procedure.
- Notice of non-renewal: for contracts of six months or more, in writing at least one month before the end date; otherwise up to one month's salary is owed (Article 7:668).
- Early termination: only if both parties agreed that right in writing (Article 7:667(3)). Otherwise the court, or agreement.
- Chain rule: a permanent contract arises after more than three fixed-term contracts or more than 36 months, counting gaps of up to six months (Article 7:668a).
- From 1 January 2028: gaps of up to 36 months count, and collective agreements can no longer extend the chain.
- Transition payment: owed when the employer does not renew a fixed-term contract, from the first day of employment.
- Permanent contract: always needs notice, agreement or a court decision to end (Article 7:667(6)).
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What Is the Difference Between a Fixed-Term and a Permanent Contract?
The difference lies almost entirely in how the contract ends. During the contract, the employee has the same rights under both types.
| Point | Fixed-term contract | Permanent contract |
|---|---|---|
| How it ends | Automatically on the agreed date | Only by notice, agreement or a court decision |
| Early termination | Only if agreed in writing for both parties | Notice, subject to the dismissal rules |
| Written notice about renewal | Required for contracts of six months or more | Not applicable |
| Maximum probation period | None up to six months; one month up to two years; two months from two years | Two months |
| Transition payment | Owed if the employer does not renew | Owed if the employer terminates |
A fixed-term contract can be agreed for a period of time, such as one year, or until an event, such as the end of a project or the return of an employee on sick leave. For an event-based contract the end is not set on a calendar date, which matters for the notice of renewal and for the probation period. Setting up the contract itself is covered in the guide to the Dutch employment contract.
How Does a Fixed-Term Contract End?
A fixed-term contract ends by operation of law when the agreed or statutory period expires: Article 7:667 of the Dutch Civil Code (1). No notice is needed, no UWV permission and no court decision.
Notice is only required if the parties agreed so in writing, or where the law or custom requires notice and the parties did not validly exclude it (paragraph 2). There is one statutory exception worth knowing: where a permanent contract that did not end by dismissal or court decision is followed, within six months, by a fixed-term contract, that fixed-term contract needs notice to end, and the notice period is calculated from the start of the permanent contract (paragraph 4). From 1 January 2028 that six-month window becomes 36 months.
Because the contract simply ends, the dismissal prohibitions, such as the one during illness, do not stop it from ending. They protect against notice by the employer, not against a term that expires.
Does the Employer Have to Say Whether a Fixed-Term Contract Will Be Renewed?
Yes, for a fixed-term contract of six months or more. The employer must inform the employee in writing, at least one month before the contract ends, whether it will be continued and, if so, on what terms: Article 7:668 of the Dutch Civil Code (1). This is called the aanzegplicht.
The duty does not apply to a contract of less than six months, or to a contract whose end was agreed in writing not to fall on a calendar date (paragraph 2). If the employer does not give the notice at all, it owes the employee one month's salary; if it gives it late, a proportional amount (paragraph 3). The contract still ends: the sanction is money, not continuation.
If the contract continues after the end date without the employer having given the notice, or without objection from either side where no notice duty applied, it is deemed renewed on the same terms for the same period, up to a maximum of one year (paragraph 4). A contract that carries on "by accident" is therefore not open-ended, but it is also not over.
Can a Fixed-Term Contract Be Ended Early?
Only if the contract says so. A fixed-term contract can only be terminated by notice before its end date if that right has been agreed in writing for each of the parties: Article 7:667 of the Dutch Civil Code (3). This is the early termination clause (tussentijds opzegbeding).
With such a clause, the employer can give notice as for a permanent contract, with the same requirement of a reasonable ground and the right route: UWV permission or the subdistrict court. Without one, the employer cannot give notice at all and has to ask the court to dissolve the contract; for redundancy and long-term illness that is possible directly under Article 7:671b of the Dutch Civil Code (1)(c). The court then sets the end date and can award the employee up to the salary for the rest of the term (paragraph 10). The full system is set out in the guide to termination of employment in the Netherlands.
A party that terminates a fixed-term contract without an early termination clause, and without an urgent reason, owes the other party the salary for the rest of the term, which the court can reduce to no less than three months' salary: Article 7:677 of the Dutch Civil Code (4). The employee can also ask the court to annul such a notice. An employee who wants to leave early without a clause therefore needs the employer's agreement or a court decision.
When Does a Fixed-Term Contract Become Permanent?
Under the chain rule (ketenregeling) of Article 7:668a of the Dutch Civil Code (1), the last contract counts as permanent from the day on which successive fixed-term contracts between the same parties have together exceeded 36 months, or when more than three fixed-term contracts have followed each other. In both cases gaps of up to six months between contracts do not break the chain.
- Same employer or successor. The rule also applies where the employee works for different employers that must reasonably be regarded as each other's successors with respect to the work, whether or not the new employer knows the employee's abilities (paragraph 2). The typical case is someone who first works through an agency and is then hired directly for the same work.
- Notice period. Once the contract is permanent, the notice period is calculated from the start of the first contract in the chain (paragraph 4).
- A short contract after a long one. A contract of no more than three months that directly follows a contract of 36 months or more between the same parties does not trigger the 36-month limb (paragraph 3).
- Collective agreements. A collective agreement can extend the period to at most 48 months and the number to at most six contracts, for jobs where the intrinsic nature of the business requires it (paragraph 5). For seasonal jobs that can be done for at most nine months a year, a collective agreement or ministerial regulation can shorten the gap to three months (paragraphs 13 and 14).
- Exceptions. The rule does not apply to contracts concluded for a vocational work-based learning programme (paragraph 10), or to employees under eighteen working on average twelve hours a week or less (paragraph 11). For employees who have reached state pension age the limits are 48 months and six contracts (paragraph 12).
More on how the chain is counted, including agency work and successor employers, in the guides to the chain rule and consecutive employment contracts.
What Changes in the Chain Rule from 1 January 2028?
The text of Article 7:668a that wetten.overheid.nl shows as applying from 1 January 2028 makes three changes. A gap of up to 36 months no longer breaks the chain, collective agreements can no longer extend the chain, and there is a special rule for pupils and students.
| Rule | Until 31 December 2027 | From 1 January 2028 |
|---|---|---|
| Gap that does not break the chain | Up to six months | Up to 36 months |
| Extension of the chain by collective agreement | To at most 48 months and six contracts | No longer possible |
| Pupils and students working at most 16 hours a week | General rule | Gap of up to six months still breaks the chain |
| Permanent contract followed by a fixed-term one (Article 7:667(4)) | Within six months: notice needed | Within 36 months: notice needed |
The limits of 36 months and three contracts themselves do not change, and neither do the exceptions for vocational training, young part-time employees and employees above state pension age. The practical effect is that the common practice of a six-month break followed by a new series of fixed-term contracts no longer works from 2028. How the new rule applies to chains that started before 2028 depends on transitional provisions that are not covered here; an employer planning contracts across that date should check them before relying on the old gap.
How Does a Permanent Contract End?
A permanent contract always requires prior notice to end, unless it ends by agreement or by court decision: Article 7:667 of the Dutch Civil Code (6). The employer needs a reasonable ground and the right route; the employee can resign by giving notice.
The Dutch dismissal system, with its nine grounds, the UWV and court routes and the notice periods, is set out in the guide to termination of employment in the Netherlands. Two provisions of Article 7:667 protect the permanent contract directly: a clause under which the contract ends automatically on marriage or registered partnership, or on pregnancy or childbirth, is void (paragraphs 7 and 8).
What About Probation and the Transition Payment?
The type of contract affects both. A fixed-term contract of six months or less cannot have a probation period at all, and not renewing a fixed-term contract triggers the transition payment in the same way as a dismissal.
Free toolTransition payment calculatorThe statutory severance on dismissal or non-renewal, based on salary, holiday pay and bonus.Calculate the paymentThe maximum probation period is two months for a permanent contract and for a fixed-term contract of two years or more, one month for a fixed-term contract of more than six months but less than two years or without a calendar end date, and none for a contract of six months or less (Article 7:652 of the Dutch Civil Code). A renewal for the same job cannot contain a new probation period.
The employer owes the transition payment when a fixed-term contract ends and is not continued on the employer's initiative, unless a new contract that can be terminated early and starts within six months was agreed before the end (Article 7:673 of the Dutch Civil Code (1)(a)). Successive contracts with gaps of no more than six months count together for the amount (paragraph 4).
Fixed-Term Contracts in the Netherlands: A Checklist
For employers, before offering or renewing a fixed-term contract:
- How many fixed-term contracts has this employee already had with you or a predecessor, and how long has the chain lasted, counting gaps of up to six months (up to 36 months from 2028)?
- Does a collective agreement change the chain rule for this job, and will that still be possible from 2028?
- Is the contract six months or longer? Then put the date for the written notice of renewal, one month before the end, in the diary now.
- Do you want to be able to end the contract early? Then include an early termination clause for both parties.
- Is a probation period allowed, and is it the first contract for this job?
- If you will not renew: has the transition payment been calculated?
For employees: check the end date, whether you received the written notice in time, how many contracts you have had, and whether your contract contains an early termination clause before you resign. A Dutch employment lawyer can check a chain of contracts quickly.
Worked Examples
Each example assumes Dutch law applies and no collective agreement changes the statutory rules.
Three contracts and a fourth. An employee has three one-year contracts in a row. A fourth contract, even for three months, is the fourth fixed-term contract, so it counts as permanent. The 36-month limb would also have been exceeded.
The six-month break. An employee's third fixed-term contract ends on 31 March 2026. The employer offers a new fixed-term contract starting on 1 November 2026. The gap is more than six months, so under the current rule a new chain starts. If the same gap fell after 1 January 2028, it would not break the chain, subject to the transitional provisions.
No notice of renewal. A one-year contract ends on 30 June. The employer forgets the written notice. The contract still ends on 30 June if the employee stops working, but the employer owes one month's salary. If the employee keeps working in July, the contract is deemed renewed for another year on the same terms.
Leaving early. An employee on a two-year contract without an early termination clause finds another job after eight months and resigns with one month's notice. That notice is not possible under the contract. Unless the employer agrees, the employer can claim salary for the rest of the term, which the court can reduce to no less than three months' salary.