Do you work through a temp agency and consider signing a permanent contract with the same or a new employer? Then it’s important to know how the law deals with temporary contracts and the switch to a permanent employment. In this article, we explain how the chain rule works and when you can claim a contract for an indefinite period.
What is the chain rule?
The chain rule states that a contract for an indefinite period arises after three successive temporary contracts or after a period of 36 months. This applies if the interval between the contracts is a maximum of six months. This means that if you have had three or more contracts for a fixed term with the same employer within three years, you automatically get a permanent contract.
Transition from temp worker to permanent employment
If you’ve worked as a temp worker and then get offered a contract by the hirer (the company you worked for via the temp agency), it’s important to know that your previous contracts can count towards determining your employment history. This affects whether you’re entitled to a permanent contract or a higher severance pay when the employment contract ends.
Successive employer: when do contracts count?
The law states that contracts with different employers can be seen as successive if the work with the new employer is comparable to that with the previous employer. This means that if you first worked as a temp worker for a company and then join them directly, these contracts can be added together. As a result, you may be entitled to a permanent contract or a severance pay sooner.
Conditions for successive employer
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Employer’s initiative: The new employer must approach you to perform the same tasks. So the initiative must come from the employer.
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Comparable tasks: The tasks you will perform at the new employer must broadly match the work you did via the temp agency. There should be no major differences in tasks or responsibilities.
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Interval: The period between the different contracts should not be longer than six months, otherwise the contracts start to ‘count again’.
Impact for employers and employees
Employers should be aware that if they hire an employee who has previously worked for them as a temp, this person may be entitled to a permanent contract sooner. For employees, this means that when moving from temp work to full-time work, they may be entitled to dismissal protection and a higher severance pay sooner.
Conclusion
The chain rule provides both opportunities and points of attention for employees switching from temp work to permanent employment. It’s important to fully understand how successive employer works and how your rights as an employee are influenced. If you have questions about the chain rule or would like advice about your specific situation, please contact one of the specialized labor law attorneys at Arslan Lawyers.
Keywords: chain rule, permanent contract, temp worker, successive employer, severance pay, labor law, temporary contracts, permanent employment.
