End Of Fixed Term Contract Letter Template for the Netherlands

An End Of Fixed Term Contract Letter is a legally required document in the Netherlands that formally notifies employees when their fixed-term employment contract will not be renewed. This letter ensures compliance with Dutch employment law and provides clear communication about the end of the employment relationship.

When do you need this document?

You need this letter whenever a fixed-term employment contract is approaching its natural expiry date and you decide not to renew it. This applies to temporary contracts, seasonal employment, project-based work, or maternity cover arrangements. The letter is particularly crucial when you have employees on successive fixed-term contracts, as Dutch law has strict rules about converting these to permanent employment. You must also use this document when international employees' work permits are linked to specific contract periods, ensuring proper notification before visa expiration.

Key legal considerations

The timing of this letter is critical under Dutch law - you must provide written notice at least one month before the contract end date as mandated by Article 7:668 of the Dutch Civil Code. If you fail to meet this deadline, the contract may automatically extend or convert to permanent employment. The letter must clearly reference the original contract details, specify the exact end date, and explain that no renewal will occur. You should also address transition payments if the employee has worked for 24 months or more, as they may be entitled to compensation under Article 7:673 of the Dutch Civil Code. Consider including information about final salary payments, accrued holiday entitlements, and the return of company property.

Legal requirements in Netherlands

Netherlands employment law imposes specific obligations when ending fixed-term contracts. The Work and Security Act requires you to consider the Chain Rule (Ketenregeling) under Article 7:668a, which states that after three consecutive fixed-term contracts or three years of employment, the next contract becomes permanent unless there's a break of more than six months. Your letter must demonstrate compliance with these succession rules. Additionally, you must inform the Works Council if applicable, particularly in larger organizations where employee representation rights apply. The notification must be in writing and should reference the specific legal basis for non-renewal. Ensure the letter is delivered through traceable means to prove compliance with the one-month notice requirement, as this protects you from potential legal challenges regarding improper termination procedures.