Notice periods Employment Contracts
Giving notice - for employee and employer
Notice period for employer
In general, the statutory notice periods are applicable for termination of both permanent employment contracts and fixed term employment contracts. However, it is possible, a notice period other than the statutory notice period is applicable, because of other agreements in the individual employment agreement.
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 to be observed by the employer is:
- one (1) month for employment agreement continuing for less than five (5) years.
- two (2) months for 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 agreements continues beyond fifteen (15) years.
Notice period for employee
The statutory notice period for the employee is one (1) month.
A longer notice period may be agreed upon if it is laid down in writing. In that case, the notice period of the employer has to twice the time the notice period the employee has to observe.
For employer – How to give notice to employee on 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 send to the employee. If you would like to receive a template termination notification letter, please send us your request and fill in the contract form.
- In line with the changes per January 1, 2020 of the Balanced Labour Market Act [Wet arbeidsmarkt in balans (WAB)] the employer has to pay a severance payment for not extending the fixed term employment contract.
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 proportional. 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 termination notification for fixed-term employment contracts does not apply in case of:
- fixed-term employment contract less than 6 months;
- temporary agency worker contracts containing a temporary employment clause.
For questions regarding HR or notice periods, please contact us.