Terminating an employment contract: what is the last day?

As a rule, the last day of the employment contract is the day before the notice of termination takes effect. If you terminate “effective March 1st” or “as of March 1st”, the last working day is usually February 28th (or 29th): the employment contract expires on the last day of the month and ends at midnight on the 1st. However, it is not always that simple. Unclear wording in a notice of termination frequently leads to disputes, and a difference of just one day can be procedurally decisive. Below, we explain the situation, where things go wrong, and how to formulate it watertight.

What does the law say about the last day?

The general rule is set out in Article 7:672 of the Dutch Civil Code: termination of an employment contract takes place at the end of the month, unless another day has been designated in writing or by custom. In practice, this rule is often translated into the well-known “per 1” formulation. The employment contract then ends on the last day of the month, and the new month begins without employment.

Important: the termination must also respect the correct notice period. For the employer, the statutory notice period is usually one to four months, depending on the duration of employment; for the employee, it is generally one month. The notice period runs and the employment contract ends at the end of the month. If you combine both, you can determine the exact end date.

Example: calculate the end date step by step

Suppose you want to terminate an employee who has been employed for less than five years, meaning a one-month notice period applies. You give notice on January 10. Because termination takes place at the end of the month, the period does not start running immediately: the entire month of February counts as the notice month. The employment contract then ends on the last day of February (February 28 or 29), and the last working day falls on that date. If the employee was employed for longer, the end date shifts forward by one or more months. Therefore, always calculate the notice period starting from the end of the next month

“As of March 1st” or “by March 1st”: when is the last day?

The confusion arises from the words “per” and “against”. Do you mean by “per March 1” that the employment contract runs up to and including February 28 (last day February 28), or that March 1 itself is the last day? That distinction seems small, but it is not. On the end date of the employment contract, various time limits begin to run, such as the time limit for filing a petition with the court. Being one day late can mean that an employee (or employer) is no longer admissible.

This is exactly what happened in a case before the Arnhem-Leeuwarden Court of Appeal. The employer had terminated the agreement “as of March 1, 2018” and assumed that the last day was February 28, 2018. The employee interpreted it differently: for him, March 1, 2018, was the last day. The Court ruled that the employee was entitled to understand the wording “as of March 1, 2018” to mean that the termination took effect on March 1, as a result of which the former employee’s petition was still timely – and therefore admissible. In this case, the unclear wording worked to the employer’s disadvantage.

The lesson: in case of doubt, an unclear notice of termination is interpreted to the disadvantage of the person who drafted it. As an employer, you want to avoid that discussion.

Please note: deviating agreements in the contract or collective labor agreement take precedence

Although the law assumes termination “at the end of the month”, this is not an immutable fact. A different termination date or notice period may have been agreed upon in the employment contract itself or in an applicable collective labour agreement. Such deviating provisions may take precedence over the statutory general rule.

Therefore, always check three sources before setting the end date:

• The law (Article 7:672 of the Dutch Civil Code): general rule and statutory notice periods.
• The employment contract: a different termination date, a longer notice period, or a specific clause regarding termination.
• The collective labour agreement: sector-specific rules that can supplement or replace the statutory regulations.

When deviating from the contract, note that the extension of the notice period is subject to limits: if the period for the employee is extended, it must in principle be at least twice as long for the employer. An incorrectly included clause can therefore itself cause problems. All the more reason to have the employment contract drafted carefully.

Draft a crystal-clear notice of dismissal

If you wish to terminate an employment contract by giving notice, you must serve the employee with a notice of dismissal. In doing so, take into account the notice period, the provisions of the employment contract and the collective labour agreement, and any termination (for example, during illness or pregnancy). And note: termination by the employer usually requires prior permission from the UWV or the employee's consent – ​​so termination cannot simply be done without further ado.

The most important thing to prevent ambiguity: explicitly state the last day. Do not write merely that the agreement is being terminated “as of February 1,” but add: “the last day of the employment contract is January 31.” This way, you rule out any discussion about that one decisive day in advance.

Checklist for a watertight notice of dismissal

• State both the effective date of the termination and the last day of the employment contract, with the date.
• Check the correct notice period based on the duration of employment.
• Check the employment contract and collective labor agreement for deviating provisions.
• Check whether a prohibition on termination applies and whether UWV permission or consent is required.
• Draw up the notice in writing and ensure that you can prove receipt.

What if the last day has already led to a conflict?

Has a dispute arisen regarding the end date, a submitted petition, or compensation for irregular termination? If so, acting quickly is important, precisely because deadlines are short. Have the wording of the termination and the procedure followed reviewed before you respond. Our legal experts provide employment law assistance to help you determine your position and avoid unnecessary mistakes.

Frequently asked questions about the last day of cancellation

What is the last day for cancellation “effective March 1st”?

As a rule, the last day is the day before the stated date, so February 28 (or 29). The employment contract ends at the end of the month. Because the wording can lead to dispute, it is advisable to explicitly state the last day in the notice of termination.

Does the employment contract always end on the last day of the month?

According to the general statutory rule, yes: termination takes effect at the end of the month. However, a different termination date may have been agreed upon in the employment contract or collective labour agreement. That deviating agreement may take precedence over the law.

Why does one day make a difference?

On the end date, various time limits start running, such as the time limit for taking legal action. If the final day is unclear, this can make the difference between an admissible request and one filed too late.

Am I allowed to deviate from the notice period in the contract?

Deviating in writing is possible within limits. If you extend the notice period for the employee, it must in principle be at least double for the employer. Therefore, have such a clause legally reviewed.

As an employer, do I need permission to terminate the contract?

Termination by the employer generally requires prior permission from the UWV (in the case of dismissal for economic reasons or long-term disability) or the employee's consent. Without a valid basis, the termination may be reversed or result in compensation.

When exactly does the notice period start?

Because termination takes effect at the end of the month, the notice period usually only starts from the first of the following month. If you give notice halfway through a month, the period starts from the beginning of the next month. Take this into account when determining the end date.

Have your notice of dismissal checked by MKB Juristen

Do you want to be certain that your termination is legally correct – from the notice period to the exact stated last day? Our employment law draft your notice of termination or review an existing one, taking into account your employment contract, the collective labour agreement, and any prohibitions on termination. This way, you avoid costly disputes afterwards.

Schedule a no-obligation intake and present your situation to one of our legal experts. We would be happy to explain what the correct end date is in your case.