An employment contract is the basis of the employment relationship between employer and employee. Yet there are many different types of contracts and a wide range of rules apply. As an employee, it is important to know what rights and obligations you have, so you are not caught off guard.
In this article we discuss the most important types of employment contracts, the statutory rules, and the most common pitfalls.
What is an employment contract?
An employment contract is an agreement between employer and employee under which you:
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personally perform work;
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are employed by the employer (relationship of authority);
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and receive wages for it.
Once these three conditions are met, there is legally an employment contract—even if no written contract exists.
Types of employment contracts
1. Temporary employment contract
A contract with a clear end date. Important here:
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You may have a maximum of 3 temporary contracts receive within 3 years (chain rule).
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After that, you are entitled to a permanent contract.
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Intervals of more than 6 months break the chain.
2. Employment contract for an indefinite period (permanent contract)
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Provides the most security.
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Dismissal is only possible via the UWV, a court, or a settlement agreement.
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Provides greater dismissal protection and accrual of rights.
3. On-call contracts (zero-hours and min/max)
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You are only called in when there is work.
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Since the Balanced Labour Market Act (WAB), after 12 months you are entitled to a fixed number of hours.
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During illness or vacation, you are entitled to continued pay based on the average hours worked.
4. Temporary agency contract
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You are employed by an employment agency, but work for a client company.
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Special rules apply, such as the phase system.
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Work as temporary agency worker can count toward successive employment with a subsequent employer.
5. Secondment contract
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You are on a permanent contract with a secondment agency and are seconded to clients.
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Often more security than a temporary agency contract.
6. Employment contract with special clauses
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Non-compete and non-solicitation clause.
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Probationary period.
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Confidentiality clause.
Important rules for employment contracts
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Written form: not required, but strongly recommended.
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Minimum wage: you are always entitled to at least the statutory minimum wage.
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Vacation days: at least 4 times the number of days you work per week.
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Continued wage payment during illness: for 2 years, at least 70%.
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Notice period: depending on employment and collective labor agreement.
Practical examples
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Example 1: An employee received four temporary contracts in three years. The court ruled that this automatically became a permanent contract.
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Example 2: An on-call worker consistently worked 25 hours per week. He could enforce a fixed number of hours via the statutory presumption of working hours.
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Example 3:An employee first started via a temp agency and then directly with the hirer. His earlier years as a temp counted.
Employment contract checklist
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📄 Is everything clearly set out in writing (position, pay, hours)?
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📅 How many temporary contracts have you already had?
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💶 Do you receive at least the minimum wage and holiday pay?
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🩺 Are the arrangements for sickness and leave properly arranged?
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🔒 What special clauses does it contain (non-compete, confidentiality)?
Common mistakes
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Accepting too many temporary contracts without realizing that this automatically results in a permanent contract.
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Signing an on-call contract without knowing that after 12 months you become entitled to fixed hours.
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Failing to pay attention to a non-compete clause that can seriously limit your career.
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Making verbal agreements that cannot be proven later.
Frequently Asked Questions (FAQ)
1. When am I entitled to a permanent contract?
After three temporary contracts or three years of employment, unless there was more than six months in between.
2. Can my employer keep giving me a zero-hours contract?
After 12 months the employer must make you an offer for fixed hours.
3. What is the difference between temporary agency work and secondment?
With temporary agency work you are flexibly employed by an employment agency, with secondment you often have a permanent contract with the secondment agency.
4. Can I enter into my employment contract orally?
Yes, that’s possible, but in writing is always safer.
5. Do I have to accept a non-compete clause?
No, this is negotiable. Seek legal advice if it hinders you.
Why Arslan Advocaten?
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Specialized in employment law and employment contracts
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Helping with reviewing and negotiating contracts
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Advising on disputes concerning on-call contracts, temporary agency work, and successive employers
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Always focused on your rights and future opportunities
Conclusion
An employment contract may sometimes seem standard, but the differences between contract types are significant and can greatly affect your rights and security. Therefore, always have your contract checked to ensure it is correctly drafted and that you are optimally protected.
