Notice period in the Netherlands are part of the employment agreement, delineating the duration between the employee’s resignation or dismissal and their final departure from the company. Understanding the notice periods is essential for both the employer and employee to navigate transitions smoothly and adhere to Dutch employment law.
Table of Contents
Dutch Civil Code – The Book of Law in the Netherlands
The Dutch Civil Code [Burgerlijk Wetboek, BW] is the primary legal code governing civil law matters in the Netherlands. It covers a wide range of topics, divided into 10 books regarding obligations and contracts, family law, property law and private laws.
The ten books of the Dutch Civil Code are:
- Book 1 Dutch Civil Code: Natural Persons and Family Law
- Book 2 Dutch Civil Code: Legal Persons
- Book 3 Dutch Civil Code: Property Law
- Book 4 Dutch Civil Code: Law of Succession
- Book 5 Dutch Civil Code: Property Rights
- Book 6 Dutch Civil Code: Obligations Law
- Book 7 Dutch Civil Code: Particular Agreement
- Book 8 Dutch Civil Code: Transport Law
- Book 9 Dutch Civil Code: Intellectual Property
- Book 10 Dutch Civil Code: International Private Law
Book 7 of the Dutch Civil Code is related to Particular Agreement and includes employment contracts requirements. This book plays a crucial role in shaping the legal framework for employment relationships in the Netherlands. Understanding both employer obligations and employee rights is crucial for compliance with Dutch employment law.
Notice Period Netherlands for Employers
The statutory notice period Netherlands for employers is applicable for termination of both permanent employment contracts and fixed term employment contracts.
Important! Unless agreed otherwise, the notice period starts running at the beginning of the month following the month in which notice is given.
The statutory notice period Netherlands to be observed by the employer, stipulated in Book 7, Article 672 Dutch Civil Code (BW) is:
- One (1) month for an employment agreement continuing for less than five (5) years.
- Two (2) months for an employment agreements duration of five (5) and ten (10) years.
- Three (3) months for employment agreements, continuing for a period between ten (10) and fifteen (15) years.
- Four (4) months if the employment agreement continues beyond fifteen (15) years.
Notice Period Netherlands for Employees
The statutory notice period Netherlands to be observed by the employee, stipulated in Book 7, Article 672 Dutch Civil Code (BW) is one (1) month.
Important! Unless agreed otherwise, the notice period starts running at the beginning of the month following the month in which notice is given.
A longer notice period for the employee may be agreed upon if it is laid down in the employment. In that case, by law the notice period of the employer has to be twice the time the notice period the employee has to observe.
For Employers: Give Notice to Employee on a Fixed Term Employment Contract
A fixed term employment contract is an employment agreement with a start and end date. The employment contract ends by law on the agreed end date, however, the employer needs to notify the employee in writing if the employment will be continued or discontinued.
- Employment contract between employee and employer is a fixed-term employment contract of at least 6 months or longer.
- Employer must inform the employee in writing at least one (1) month before the contractual end date.
- In case the fixed term employment contract will be continued, please provide the employee with a renewed employment contract.
- The employment could be continued on a fixed term employment contract or a permanent employment contract.
- Read more on Fixed term Employment Contract conversion to Permanent Employment Contract.
- In case the fixed term employment contract is not renewed a written letter must be sent to the employee.
- If you would like to receive a template termination notification letter, please send us your request and fill in the contact form.
- In line with the Balanced Labour Market Act [Wet arbeidsmarkt in balans (WAB)] the employer has to pay a severance payment [transitievergoeding] for not extending the fixed term employment contract.
- In case the employee has requested a reference letter, send the letter to the employee in accordance with the the legal information in an official reference letter.
Employer Failure of Notice or Giving Notice too Late
- In case the employer fails to give notice or giving notice later than one (1) month in writing, if the employment will be continued or discontinued, the employee is entitled to a compensation. The compensation for not giving notice is one (1) month gross salary.
- In the employer is giving notice later than one (1) month, the employee compensation will be paid proportionally. Example: if the notice period is one week too late (three weeks before the end date of the employment contract) employee is entitled to a compensation of one week gross salary.
The notice period for a fixed-term employment contract does not apply in case of:
- A fixed-term employment contract less than 6 months;
- A temporary agency worker contracts containing a temporary employment clause.
