When you, as an employee, have a fixed-term contract that lasts longer than six months, the employer must inform you no later than one month before the end of the contract whether your employment contract will be extended or not. This is called the obligation to notify. If the employer does not comply with this, you are entitled to notification compensation.
What is the obligation to notify?
The obligation to notify means that the employer:
-
must state in writing whether your contract will be extended or terminated;
-
must do this at least one month before the contract’s end date;
-
must be clear about the terms upon extension (for example, number of hours or salary).
If this is forgotten or done too late, you are entitled to a notice compensation.
Can the notice be included in the contract in advance?
Yes, it is possible for the notice to be arranged already when signing the employment contract. The employer may include in the employment agreement that the contract will not be extended after it ends. This counts as a valid notice, as long as it is included clearly and unambiguously.
Note: it is important that the employee is not disadvantaged by this and that the notice takes place well in time (i.e., at signing). Oral agreements usually do not suffice, unless they are so timely and complete that your position as an employee does not suffer as a result. But documenting in writing and in advance always provides the most certainty.
How much is the notice compensation?
The amount of the notice compensation is equal to the wages for the period during which the employer is late with the notice.
👉 Examples:
-
If the employer is 10 days late, you receive the wages for those 10 days.
-
Was no notice given at all? Then you are entitled to compensation equal to one month’s salary (the maximum).
How do you claim the notice compensation?
It is important to act quickly:
-
Ask the employer in writing to pay the notice compensation.
-
Does the employer not pay voluntarily? Then you can submit a request to the subdistrict court.
-
This request must be made within two months after the end of your employment contract.
Note: after this period, your right expires permanently.
When does the application period start?
The period to claim the notice compensation starts at the moment your employer should have given notice at the latest—that is, one month before the end of your temporary contract. You then have up to two months after the end of the employment to claim the compensation. So don’t wait too long: after this period, your right to the notice compensation automatically expires.
Common mistakes by employees
-
Taking action too late, causing the right to compensation to expire.
-
No written proof of the late or missing notice kept.
-
Thinking the compensation is paid automatically, whereas action is often required first.
When does the notice compensation not apply?
There are exceptions in which the employer does not owe notice compensation:
-
For contracts that are less than six months in duration.
-
For temporary agency contracts with an agency clause.
-
When the employee terminates the contract themself.
In addition, it is important to know that the notice must always be given in writing An oral notice is, in principle, not permitted. If the employer nevertheless does this only orally, they must still pay the notice compensation. Only if the oral notice is given so promptly that the employee’s interests are not harmed can there be an exception. But this is rare in practice—so always ask for written proof!
Help from an employment lawyer
Are you unsure whether you are entitled to notice compensation, or would you like someone to check the calculation? Our employment lawyers are happy to help you with:
-
reviewing your employment contract;
-
calculating the correct compensation;
-
drafting a written request to the employer;
-
filing proceedings with the court if necessary.
Conclusion
The notice compensation is intended as protection for employees with a fixed-term contract. Has your employer failed to comply with the notice obligation (on time)? Don’t wait too long and contact us immediately. This prevents your right from lapsing after two months.
Frequently Asked Questions
What is the obligation to notify in fixed-term employment contracts?
The obligation to notify requires the employer to inform you in writing whether your contract will be extended or terminated at least one month before it ends. This notice must clearly state the terms of extension or termination.
Can the notice of contract extension or termination be included in the employment contract in advance?
Yes, the employer can include a clause in the contract specifying that it will not be extended, as long as this is clear and unambiguous at signing. Oral agreements are less reliable unless they are timely and fully documented in writing.
What compensation am I entitled to if my employer fails to give proper notice?
If the employer is late with the notice, you are entitled to wages for the period they were late; if no notice is given at all, you can receive up to one month’s salary as compensation. The amount depends on how late the employer was in providing notice.
How do I claim notice compensation if my employer does not pay voluntarily?
You should request the compensation in writing from your employer; if they refuse, you can file a claim with the subdistrict court within two months after your employment ends. Acting promptly is essential to preserve your rights.
