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What is a notice of termination by the employer? It is the written notification that you, as an employer, must provide no later than one month before the end of a temporary contract of six months or longer: you inform the employer whether or not you will continue the contract, and if so, under what conditions. This notification obligation is stipulated in Article 7:668 of the Dutch Civil Code. Note the distinction: this is not a termination or dismissal, but an obligation to provide information regarding the expiration of a temporary contract. If you forget to provide the notification, you owe a notification compensation.
The short answer
- The notification obligation applies to a fixed-term employment contract of six months or longer with a fixed end date.
- You must notify us in writing at least one month before the end whether the contract will be continued, and under what conditions.
- It is a duty to inform, not a dismissal: the contract ends by operation of law on the end date in any case.
- If you fail to give notice or give notice too late, a notice payment of up to one month's salary is due (pro rata in the event of late notice).
- The employee must claim the compensation within two months after the termination (Article 7:686a paragraph 4 of the Dutch Civil Code).
What exactly is a notice of dismissal by the employer?
The term 'notice of dismissal' is somewhat confusing from a legal perspective, as no dismissal is involved. What the law calls 'notice' is the notification at the end of a temporary contract. Article 7:668 paragraph 1 of the Dutch Civil Code obliges the employer to inform the employee in writing, no later than one month before the agreed end date, whether the employment contract will be continued and, if so, under what conditions. This ensures the employee knows where they stand in time and can look for other work if necessary.
The obligation applies only to a fixed-term contract of six months or longer with an end date on a calendar date. For a contract shorter than six months, there is no notification requirement. The obligation also does not apply to a contract that does not end on a fixed date, for example for the duration of a project, or to a temporary employment contract with a temporary employment clause.
Notice is not termination
The difference with termination is fundamental. A temporary contract ends by operation of law on the end date, without the need for notice and without the permission of the UWV or the sub-district court. The notification does not change this: it merely confirms whether the contract ends or continues. If you wish to terminate a permanent contract or a long-term temporary contract prematurely, you do require a genuine notice of termination, with reasonable grounds and the preventive review by the UWV or the sub-district court (Articles 7:669 and 7:671 of the Dutch Civil Code). This route is completely separate from the notification obligation.
So do not confuse the two. You can announce in the same letter that the contract is ending, but that is not a dismissal: the law allows the contract to expire automatically.
What happens if you are late?
If you do not give notice at all, the notice compensation is equal to a gross monthly salary (Article 7:668, paragraph 3 of the Dutch Civil Code). If you give notice too late, the compensation is pro rata to the number of days you are late. For example, if you were ten days late, you pay approximately one-third of a monthly salary. The compensation is due regardless of whether the contract ends or continues.
The employee must file the claim within two months after the end of the contract (Article 7:686a, paragraph 4 of the Dutch Civil Code). After that, the right lapses. For the employer, this is a strict deadline to keep an eye on, as a forgotten notice can quickly cost money.
Practical example
A catering company hires an employee for a one-year contract from March 1 to March 1. The employer does not wish to extend the contract after its expiration, but only considers this on February 20. The notice is then almost three weeks too late. The contract ends as planned on March 1, but the employer must pay a notice compensation pro rata for the days that were late. Had he given written notice before February 1, nothing would have been due.
Honest recommendation
For a standard notice, you usually do not need a lawyer. A short, timely letter stating whether or not the contract will continue is sufficient, provided you keep track of the date. Mark the notice date in your calendar as soon as you enter into a temporary contract of six months or longer; this will automatically prevent the compensation. Always record the notice in writing, for example by email with a read receipt.
Seeking legal assistance is advisable if the situation becomes more complex: in case of doubt as to whether it is truly a temporary contract, with a contract containing an early termination clause, with successive contracts leading towards permanent employment (the chain rule), or if you actually do wish to terminate the contract early. In such cases, it concerns termination rather than notification, and the rules apply much more strictly.
Want to know more or need help? Check out our page on the notice of dismissal by the employer, read how to drafting a notice of dismissal by the employer , or what it costs to have a notice of dismissal by the employer drafted.
Frequently Asked Questions
It is the written notification that the employer must provide no later than one month before the end of a temporary contract of six months or longer (Article 7:668 of the Dutch Civil Code). You state whether the contract will be continued and under what conditions. It is a duty to inform, not a dismissal.
For a fixed-term employment contract of six months or longer with a fixed end date. Not for contracts shorter than six months, contracts without a calendar date as the end date, or a temporary employment contract with a temporary employment clause.
A temporary contract ends by operation of law on the end date; the notice merely confirms whether it stops or continues. Termination is actual dismissal and requires reasonable grounds plus permission from the UWV or the subdistrict court (Articles 7:669 and 7:671 of the Dutch Civil Code).
If you do not give notice at all, a notice payment of one gross monthly salary is due (Article 7:668 paragraph 3 of the Dutch Civil Code). If you are late, compensation applies pro rata to the number of days you are late.
Yes. The law requires written notice. An email suffices, provided it can be proven to have been received. If you do it only verbally, you still risk the notice fee because you cannot prove the timely written notification.
Within two months after the termination of the employment contract (Article 7:686a paragraph 4 of the Dutch Civil Code). If the claim is filed later, the right to the notice payment lapses.
No. A temporary contract ends automatically on the agreed date. The notice is merely a notification regarding whether or not to continue and does not change the end date.
