Fixed-Term Contracts in the Netherlands: A Guide for Expats

Special thanks to GMW Lawyers for providing this practical and helpful article for our readers.

Many employers in the Netherlands offer a fixed-term employment contract as the first employment agreement. A one-year contract is very common. If you are an expat working in the Netherlands, it is important to understand what this means for your rights and obligations. Below is an overview of the main rules governing fixed-term contracts.

1. The Chain Rule: When Temporary Contracts Become Permanent

Dutch law limits the number of consecutive temporary employment contracts an employer may offer to you. This is known as the chain rule (ketenregeling).

In general, an employment contract for an indefinite period is created automatically if:

• you have had more than three consecutive temporary contracts, with breaks of no more than six months between them; or
• the total duration of the temporary contracts exceeds three years.

If the employer wants to continue the employment relationship after that point, the contract is usually converted into a permanent contract.

There are exceptions to this rule, so it is always important to check the specific circumstances.

2. Non-Compete Clauses in Fixed-Term Contracts in the Netherlands

A non-compete clause in a fixed-term employment contract is subject to stricter requirements than in a permanent contract.

The employer must explain in writing why the clause is necessary to protect a substantial business interest. This justification must be specific and convincing.

The reason for this stricter rule is that a fixed-term contract already limits the employee’s freedom of labour because it ends on a specific date. For that reason, Dutch courts review such justifications very strictly.

If the employer’s reasoning is not sufficiently clear or strong, the non-compete clause may be invalid. Do have the clause checked by a lawyer before changing employment to a competitor to avoid receiving angry letters from the employer.

Please note that new rules on non-compete clauses may soon enter into force if the government approves the proposed legislation. We therefore advise you to keep an eye on the website of GMW Lawyers for the latest updates.

Note: If the legislative proposal aimed at providing more security for flexible workers is adopted by the Senate, the maximum interruption period will be extended to 36 months as of 1 January 2028.

Read Also: Help, I am Being Fired! Five Helpful Tips in Case of (Imminent) Dismissal

3. Early Termination

Although many fixed-term contracts include an early termination clause (tussentijds opzegbeding), it is important to check whether this clause is actually included in your contract.

If there is no early termination clause, you cannot simply resign before the end date without the permission of your employer, unless there is another legal ground to do so. The same applies to the employer.

For the employer, there is an additional requirement: even if an early termination clause exists, the employer still needs a valid reason for dismissal. In practice, this usually means that the dismissal must be reviewed by the UWV or the court, depending on the situation.

For expats, this is an important point: a fixed-term contract does not always mean flexibility. In some cases, both parties are bound by the contract until the agreed-upon end date.

4. Probation Period

A probation period (proeftijd) may be included in a fixed-term employment contract, but only under certain conditions.

In general:

• the probation period must be agreed in writing;
• it is only allowed in a fixed-term contract if the contract lasts longer than six months;
• for contracts of less than two years, the probation period may not exceed one month, unless a collective labour agreement (CAO) provides otherwise; and
• for contracts of two years or longer, the probation period may not exceed two months.

The probation period must be the same for both parties. If the employer can terminate the contract during probation, the employee must have the same right.

If these rules are not followed, the probation clause is invalid and is treated as if it never existed.

A fixed-term contract can be a good way to start your career in the Netherlands, but the details matter. By understanding your contract properly from the beginning, you can make informed decisions about your work, your future and your stay in the Netherlands. If anything is unclear, professional legal advice can make all the difference.

GMW Lawyers – Experts in Employment Law

Do you need legal advice? Contact our team of English-speaking employment lawyers for assistance. Call us at 070 361 5048 or send us an e-mail. We can work it out!

This article is written by Amber Willemsen from GMW Lawyers.