Rolling Contract Employment Template for the Netherlands

A Rolling Contract Employment agreement is an indefinite-term employment contract that establishes a permanent working relationship between an employer and employee in the Netherlands. Unlike fixed-term contracts, this agreement continues indefinitely until terminated by either party according to Dutch employment law procedures. You'll need this document when hiring employees for permanent positions where job security and long-term commitment are priorities for both parties.

When do you need this document?

You should use a Rolling Contract Employment agreement when establishing permanent employment relationships in the Netherlands. This contract type is essential when hiring full-time or part-time employees for ongoing positions without a predetermined end date. Companies typically use these agreements for core business roles, management positions, and any employment situation where they want to provide maximum job security to attract and retain talent. The agreement is also necessary when converting temporary contracts to permanent employment after the legal maximum period for fixed-term contracts has been reached.

Key legal considerations

Several critical legal elements must be included in your Rolling Contract Employment agreement to ensure Dutch law compliance. The probationary period cannot exceed two months for contracts longer than two years, and one month for shorter contracts. Notice periods vary based on employment duration and must follow statutory minimums outlined in the Dutch Civil Code. You must clearly specify working hours, overtime policies, and rest periods in accordance with the Working Hours Act. The agreement should detail salary, holiday entitlement (minimum 20 days annually), and any additional benefits. Termination clauses must comply with the Work and Security Act, including proper dismissal procedures and potential transition payments. Consider including non-compete clauses, but ensure they meet Dutch reasonableness standards regarding duration, geographical scope, and compensation.

Legal requirements in Netherlands

Netherlands employment law mandates specific requirements for Rolling Contract Employment agreements under the Dutch Civil Code Book 7, Title 10. The contract must be written and include parties' full details, job description, salary, working hours, and place of work. Employers must provide the agreement within one month of employment commencement. Minimum wage requirements must be met according to the Minimum Wage and Minimum Holiday Allowance Act, with holiday allowance of at least 8% of annual salary. The Working Conditions Act requires employers to ensure safe working environments and may necessitate specific safety clauses. For companies with 50+ employees, Works Councils Act provisions may apply, requiring consultation on employment terms. The Work and Security Act governs dismissal procedures, requiring valid grounds and proper notice periods. Employers must also comply with discrimination laws and provide equal treatment regardless of gender, age, nationality, or other protected characteristics.