A temporary employment contract is often flexible in nature. Both the temporary worker and the temp agency can decide to terminate their cooperation. Nevertheless, there are clear rules regarding notice periods, notification and the right to a transition allowance.
In this article, we explain the rules that apply when terminating a temporary employment agreement, with and without a temporary clause, and the rights a temporary worker has when terminating the employment contract.
Terminating a temporary employment contract with a temporary clause
Many temporary workers in phase A work with a temporary employment contract with a temporary clause. This means that the contract automatically ends as soon as the hirer ends the assignment.
Termination by the temporary worker
The temporary worker can terminate the agreement at any time. However, the obligation to inform the temp agency at least one working day in advance applies during the first 52 weeks, so that a replacement can be arranged.
Notification period by the temp agency
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First 26 weeks: no notification period.
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Week 27 to 52: notification period of 10 calendar days.
If the temporary worker is not warned in time? Then they are entitled to a compensation equal to the wage over the remaining notification period. Instead of this compensation, the temp agency may also offer suitable work. If the temporary worker refuses that work, the right to wage compensation lapses.
Terminating a temporary employment contract without a temporary clause
A temporary contract without a temporary clause can be terminated in phase A, B or C by both the temporary worker and the temporary agency.
Notice periods for the temp agency
The temporary agency must respect the statutory notice period:
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Less than 5 years in service: 1 month.
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5 to 10 years in service: 2 months.
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10 to 15 years in service: 3 months.
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15 years or longer in service: 4 months.
Notice period for the temporary worker
For the temporary worker, a notice period of 1 month applies, unless otherwise agreed in the collective labor agreement.
Limitations on intermediate termination
Intermediate termination is not always possible. This is only allowed if this is explicitly and in writing included in the contract or collective labor agreement, and if the statutory notice period is proportional to the duration of the contract.
For example, if a temporary employment contract is entered into for three weeks, it cannot be terminated in the meantime because the legal notice period (1 month) is longer than the duration of the contract.
Exception: wage exclusion
When the temp agency temporarily does not pay wages due to a lack of work (wage exclusion), the temporary worker may terminate the contract without notice period. The condition is that the wage exclusion is explicitly and in writing included in the contract.
Notice period for the hirer
Whether a hirer can terminate the providing of work depends on the contractual agreements with the temp agency. In practice, often applies:
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For tasks for an indefinite period: a notice period of 15 calendar days.
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For tasks with a fixed term: intermediate termination is in principle not possible, unless this is agreed upon in writing.
Right to a transit payment
As of April 1, 2023, temporary workers are entitled to a transition fee when terminating their temporary employment contract. The main rules:
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The transition fee must be paid within 1 month after the end of the employment.
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Temp agencies cannot appeal to the statutory expiry period of 3 months.
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A temporary worker can claim the fee up to 12 months after the end of the contract in court.
The amount of the transition fee depends on the number of service years and the last earned salary.
Help from a labor law lawyer when terminating a temporary employment contract
The rules surrounding the termination of a temporary employment agreement are complex and differ per situation. Is your temporary employment contract being terminated or do you doubt whether your rights are being respected? Then it is wise to engage a specialized labor law lawyer.
At Arslan Lawyers, we regularly advise and litigate in cases involving temporary employment agreements, transition payments, and dismissal issues. We ensure that you get what you are entitled to.
Frequently Asked Questions
Can I terminate my temporary employment contract at any time?
Yes, as a temporary worker, you can terminate your contract at any time, but you must inform the temp agency at least one working day in advance during the first 52 weeks. If you fail to do so, you may be entitled to wage compensation for the remaining notification period.
What notice periods apply when a temporary agency terminates my contract without a temporary clause?
The notice period for the temp agency depends on your length of service: less than 5 years requires 1 month, 5-10 years 2 months, 10-15 years 3 months, and 15 or more years 4 months. You should be informed in advance according to these statutory periods.
Are there any restrictions on terminating a temporary contract early?
Early termination is only allowed if explicitly written into the contract or collective labor agreement and if the statutory notice period is proportionate to the contract duration. For very short contracts, such as three weeks, early termination may not be possible unless specific conditions are met.
What happens if my employer temporarily stops paying wages due to lack of work?
If a wage exclusion clause is explicitly included in your contract in writing, you may be able to terminate your temporary contract without notice due to the employer’s wage suspension. This is an exception to the usual notice period requirements.