The importance of a good employment contract
Your employment contract is the foundation of your employment relationship. This document contains all agreements between you and your employer regarding salary, working hours, position and other important conditions. It is therefore crucial that you read and understand your employment contract thoroughly before signing it. This applies in particular to labour migrants, who sometimes receive a contract in a language they do not fully master.
In the Netherlands, an employer is legally required to record the principal terms of employment in writing. This must be done within one month after the commencement of the work. If you have not received a written contract, this does not mean that you have no rights. An oral agreement is also valid, but more difficult to prove.
Types of employment contracts
There are different types of employment contracts in the Netherlands. The most common is the fixed-term contract, which automatically ends after the agreed period. After three successive contracts or after a total duration of three years, an indefinite-term contract automatically arises. This is known as the chain rule (ketenregeling).
In addition, there are on-call contracts (oproepcontracten), min-max contracts (min-maxcontracten) and temporary agency agreements (uitzendovereenkomsten). Under an on-call contract, you are not obliged to accept a call, but after twelve months your employer must offer you fixed hours based on the average of the preceding period.
Probationary period: what is allowed and what is not?
A probationary period offers both the employer and the employee the opportunity to determine whether the cooperation is satisfactory. During the probationary period, the contract may be terminated by both parties without notice period. The maximum probationary period depends on the duration of the contract. For a contract of six months or shorter, no probationary period is permitted. For a contract of more than six months but less than two years, the probationary period is a maximum of one month. For a contract of two years or longer or for an indefinite period, the probationary period is a maximum of two months.
A probationary clause (proeftijdbeding) is only valid if it has been agreed in writing and is the same for both parties. If your employer dismisses you during the probationary period (proeftijd), it must, at your request, state the reason in writing.
The non-competition clause
A non-competition clause limits your possibilities to work for a competitor or start your own business after the end of the employment relationship. Since 2015, a non-competition clause in a fixed-term contract is in principle no longer permitted, unless the employer provides written justification as to why the clause is necessary due to compelling business interests.
In an employment contract for an indefinite term, a non-competition clause may be included. However, note that an overly broad non-competition clause may be nullified or limited by the court. If the clause unreasonably disadvantages you in relation to your employer's interest, the court may render the clause wholly or partially ineffective.
Notice Period and Termination
The statutory notice period for employees is one month, regardless of the duration of the employment. For employers, the notice period is longer and depends on the duration of the employment: one month for less than five years, two months for five to ten years, three months for ten to fifteen years, and four months for fifteen years or longer. In the employment contract, a longer notice period for the employee may be agreed upon, but then the notice period for the employer must be double.
Tips for labour migrants
As a labour migrant, you deserve extra attention when signing your employment contract. Ask for a translation of the contract into your own language if you do not master Dutch well. Check whether the salary is at least the statutory minimum wage. Pay attention to any deductions for housing, which may not exceed 25% of the minimum wage. Check whether your working hours, breaks and overtime arrangements are clearly stipulated.
Always keep your own copy of your signed employment contract. If you have doubts about certain provisions, have the contract reviewed by an employment lawyer. At Arslan Advocaten, we can explain your contract to you in multiple languages and advise you on your rights and obligations.