Many employees in the Netherlands work on a temporary contract. When such a work agreement is not renewed, it can have significant implications. Fortunately, in many cases, the employee is entitled to a severance pay.

At Arslan Lawyers, we often receive questions about severance payments with temporary contracts. In this article, we explain how it works, your rights, and how you can claim the payment.

What is severance pay?

The severance pay is a financial compensation that an employee receives at the end of his employment contract, unless the dismissal is the result of serious misconduct by the employee.

The compensation is intended to facilitate the transition to another job, for example, by investing in training or as compensation for the loss of income.

Severance pay with temporary contracts

Also at the expiration of a temporary contract (certain time), the employee is entitled to severance pay, if:

• the employment contract at the employer’s initiative is not extended, or;

• the employer prematurely ends the contract.

It doesn’t matter if you had one, two or three temporary contracts: at each end of an employment contract, a right to severance pay can arise.

How is the severance pay calculated?

The amount of compensation is calculated based on:

• 1/3 monthly salary per year of service

• For a shorter period than a year, a proportional calculation applies

Here, not only the base salary counts, but also:

• holiday pay

• fixed bonuses

• shift work allowances and structural overtime payments

Examples from the field

• Example 1: An employee had a year contract that was not extended. His monthly salary was €2,400. He received a severance pay of €800 (1/3 of €2,400).

• Example 2: An employee worked for two years on temporary contracts. Her salary was €3,000 per month. By not extending her contract, she was entitled to €2,000 severance pay (2 x 1/3 monthly salary).

• Example 3: A student had a temporary contract of 8 months and earned €1,800 per month. When the contract was not extended, he received a severance pay of about €480.

Checklist: verify your right to severance pay

• 📄 Check if the contract was terminated by the employer.

• 📅 Calculate the duration of the service time (all contracts count).

• 💶 Pay close attention to the gross monthly salary including allowances.

• 📝 Check whether the employer pays the severance pay within one month after the end of the employment contract.

• ⚖️ Hire a labour law lawyer if the employer refuses to pay.

Why Arslan Lawyers?

• Specialists in labour law and severance payments

• Experience with both individual claims and collective cases

• Personal approach and clear communication

• If necessary, we will start a procedure at the district court immediately

FAQ on severance pay with temporary contracts

1. Am I entitled to severance pay if my temporary contract expires?
Yes, unless you resign yourself or the dismissal is your own fault.

2. When should the severance pay be paid?
Within one month after the end of your contract.

3. Do I also get severance pay if I have worked briefly?
Yes, even with short contracts, the compensation is calculated proportionally.

4. May the employer deduct training costs from the compensation?
Yes, but only if these costs were made to make you more employable in the labor market and this was agreed in writing.

5. What if my employer refuses to pay?
Then you can start a procedure at the district court within three months after the end of your contract through a lawyer.