End Of Temporary Contract Letter Template for the Netherlands
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What is a End Of Temporary Contract Letter?
The End Of Temporary Contract Letter is a crucial document in Dutch employment practice, required by law to be provided at least one month before the termination date of a fixed-term employment contract. This requirement stems from Article 7:668 of the Dutch Civil Code, which mandates written notification of whether a temporary contract will be renewed. The letter serves multiple purposes: it confirms the end date of employment, outlines final arrangements, addresses company property return, and details any final payments or transition allowances. It's particularly important in the Netherlands due to strict employment regulations and the potential automatic conversion of temporary contracts to permanent ones under the 'chain rule' (ketenregeling). The document helps employers maintain compliance with Dutch employment law while providing clarity to employees about their employment status.
About the End Of Temporary Contract Letter
An End Of Temporary Contract Letter is a legally mandated document that Dutch employers must provide to employees when a fixed-term employment contract approaches its expiration date. Under Netherlands employment law, this formal notification serves as official confirmation that your temporary contract will not be renewed and establishes clear termination procedures in compliance with Dutch Civil Code requirements.
When do you need this document?
You must issue this letter at least one month before your employee's temporary contract ends, as required by Article 7:668 of the Dutch Civil Code. This applies whether you're ending a seasonal employment arrangement, concluding a project-based contract, or allowing a maternity cover position to expire naturally. The letter becomes particularly crucial when you've employed someone on multiple consecutive temporary contracts, as failing to provide proper notice could trigger automatic conversion to permanent employment under the chain rule. You also need this document when international employees require official documentation for visa or residence permit applications, or when terminating contracts that may qualify for transition payments under Dutch law.
Key legal considerations
The letter must clearly reference the original employment contract terms and confirm the specific end date to avoid ambiguity about employment status. You should address any outstanding holiday pay, final salary payments, and transition allowances (transitievergoeding) that may be due under Netherlands law. Include explicit instructions for returning company property such as equipment, access cards, or confidential materials to prevent post-employment disputes. Consider whether your employee qualifies for a transition payment if they've worked for you for at least two years, as this compensation may be mandatory regardless of the temporary contract nature. The document should also clarify any post-employment obligations such as confidentiality agreements or non-compete clauses that remain in effect after the contract ends.
Legal requirements in Netherlands
Dutch employment law under the Work and Security Act requires written notification of contract non-renewal delivered within specific timeframes to maintain legal compliance. The chain rule (ketenregeling) provisions in Article 7:668a of the Civil Code limit consecutive temporary contracts to 36 months maximum, after which employment automatically converts to permanent status unless proper procedures are followed. Your letter must comply with written notice requirements and include all mandatory information such as final working dates and property return deadlines. Netherlands law also requires that you inform employees about their rights regarding unemployment benefits and potential transition payments. Ensure your letter references the specific contract dates and terms to demonstrate compliance with fixed-term employment regulations and avoid unintended permanent employment obligations under Dutch Civil Code Book 7.
GOVERNING LAW
Applicable law
This End Of Temporary Contract Letter is drafted to comply with Netherlands law. Key legislation includes:
Work and Security Act (Wet Werk en Zekerheid): Regulates employment protection, including rules for fixed-term contracts and their termination
Chain Rule (Ketenregeling) - Article 7:668a BW: Governs the maximum number and duration of consecutive temporary contracts before they automatically convert to permanent contracts
Transition Payment Law (Transitievergoeding): Regulations regarding compensation that may be due to employees upon termination of employment, including temporary contracts
Written Notice Requirement - Article 7:668 BW: Mandates that employers must inform employees in writing at least one month before the end date about whether the contract will be extended
General Data Protection Regulation (GDPR): Ensures proper handling of employee personal data in employment documentation
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