Employment contract in the hospitality industry

What is an employment contract in the hospitality industry?

An employment contract in the hospitality industry is an agreement between an employer and an employee that sets out the terms and conditions of the job. It outlines the responsibilities and rights of both parties. An employment contract must comply with the applicable legal employment conditions.

Different types of employment contracts in the hospitality industry

Fixed-term employment contracts

A fixed-term employment contract has a predetermined duration. The period you agree upon can be of any length. The employment contract must include a start and end date. The employment relationship automatically ends when the agreed period expires, so you do not need to terminate it.

As of 1 January 2015, your employer is required to inform you in writing at least one month before your temporary contract ends whether it will be renewed or not, and if so, under what conditions. This is known as the notification obligation. The notification obligation applies to contracts that are for a period of six months or longer. If the employer fails to meet this obligation or does so late, they owe the employee compensation equivalent to the salary for the number of days the notification was delayed, up to a maximum of one month's gross salary.

Permanent employment contracts

A permanent employment contract does not have a fixed end date and remains in effect until one of the parties chooses to terminate it. This type of contract is often used for long-term employment relationships in the hospitality industry, such as permanent staff.

Additionally, you are entitled to a permanent contract in the hospitality industry when you are offered a fourth contract or when you have been employed by your employer for more than 3 years. This is also known as the chain rule. If there is more than a 6-month gap between temporary contracts, the counting of contracts starts anew. Note: there are possible exceptions to the above chain rule:

• You have a work-study agreement for a BBL programme (vocational training pathway).
• You are under 18 years old and work an average of no more than 12 hours per week.
• You are a temporary agency worker and your contract includes a temporary agency clause.
• You are an intern.
• You have reached the state pension age. An employer may offer you 6 temporary contracts within a period of 4 years from the state pension age.

The CLA hospitality stipulates that if you are a seasonal worker or a seasonal worker in climate and nature, the interval of the chain rule is shortened to 3 months.

Employment conditions in hospitality

An employment contract establishes the employment conditions, setting out the rights and obligations of both employer and employee. Here are some important aspects of employment conditions in hospitality:

Salary and allowances

The salary in hospitality can vary depending on the role, level of experience, and type of business. Agreements can also be made regarding any tips or bonuses. Check in the CLA hospitality (appendix II) what your pay should be or use our ‘Check your money’ tool to verify your Updates salary.

Working hours and rest periods

Irregular working hours are part of the hospitality industry. In hospitality, work often takes place in the evenings, weekends, and during public holidays. The CLA hospitality therefore clearly states what you are and are not entitled to when it comes to working hours in hospitality. Agreements have been made regarding scheduling, overtime, public holidays, and breaks.

Annual leave and holiday pay

As an employee in the hospitality sector, you are entitled to annual leave and holiday pay. The number of annual leave days is determined based on the number of hours worked. Check our page on annual leave in hospitality for a detailed explanation of the number of leave days. Additionally, you are entitled to holiday pay, which amounts to 8% of the salary you earned with your employer during the holiday year.

Sick leave and leave arrangements

It happens to everyone at some point; you need to work but are too ill. Make sure to report your illness as described in the company regulations. In case of illness, you are entitled to continued payment of your salary, and your employer has the right to implement an unpaid waiting day.

Categories of workers in hospitality

The CLA hospitality recognises different categories of workers:

• Zero-hour temporary worker
• Seasonal worker
• Seasonal worker climate and nature
• Skilled/unskilled worker

As a zero-hour temporary worker, you have a zero-hours contract, meaning there is no fixed number of hours established. You are employed on a call basis, depending on the needs of the company. The hours can vary per week.

Seasonal workers are employees who are temporarily employed during specific seasons, such as the summer or winter period. They are often hired due to peak demand in hospitality, for example, in holiday resorts or ski resorts.

Seasonal worker climate and nature is a specific category of seasonal workers who are employed for a maximum of 9 months due to climatic or natural conditions. This means that the position is not available for more than 9 months, think of a hospitality location with only a terrace in the season, outside the season there is no work available. An example of this is a beach pavilion or an ice cream parlour.

The distinction between skilled and unskilled workers refers to the level of skills and expertise of the employee. A skilled worker is an employee aged 18 or older who has specialised Insights and skills in a particular field within hospitality. The skilled worker has either completed training or has demonstrably gained sufficient experience in the role (this is considered to be more than 1,976 hours of experience in the same role). If you are classified in job grade V or higher, you are always a skilled worker.

An employee is an unskilled worker if he/she has not gained the required experience (1,976 hours of experience). An unskilled worker usually has broader employability and performs less specialised tasks. The employment contract states how many hours of experience must be accumulated before the employee becomes a skilled worker.

The distinction between skilled and unskilled workers is important due to classification and whether or not receiving a holiday allowance. As an unskilled worker, you receive at least the basic salary at job grade I+II or a CLA—youth salary percentage of that which is linked to the applicable minimum (youth) salary for you. You are not entitled to a holiday allowance.

If you are a skilled worker but not yet 20 years old, you receive a percentage of the basic salary of the job grade in which you are classified.

Your employment contract describes which category you fall under. A combination is also possible! Pay close attention to the agreements you make about this, as not all parts of the CLA apply to all categories of workers.

Hospitality agency workers

It is possible to work at a hospitality company through an employment agency. Usually, you are employed as an agency worker for tasks that are temporary in nature. During this period, you are officially employed by the employment agency, which is also responsible for paying your wages.

The employment agency is your actual employer, and your salary is in principle determined by the agency CLA (ABU or NBBU), but there is also an important rule: the hirer's remuneration. This means that as an agency worker, you are entitled to the same remuneration as employees who are directly employed by the hospitality company if you do the same work. Equal work = equal pay.

The hirer's remuneration is mandatory and must be applied by every employment agency that falls under the ABU or NBBU CLA. View more information about the agency CLA.

Freelancer in hospitality

As a freelancer in hospitality, you are hired for tasks and have the opportunity to work at different venues. This means that no hospitality contract is drawn up. As a freelancer, you are responsible for sending invoices for the hours worked.

Rights and responsibilities of workers in hospitality

As a worker in the hospitality sector, you have certain rights and responsibilities that you must adhere to. Below are some important aspects:

Wages and payment

Employers are obliged to pay workers on time and according to the agreed salary conditions. It is important to regularly check your payslips to ensure everything is correct.

Working conditions and safety

As a worker, you have the right to a safe and healthy working environment. The employer must ensure this is arranged. This includes providing the necessary protective equipment, such as safety gear, and complying with applicable safety regulations.

Termination of an employment contract in hospitality

An employment contract can be terminated in various ways in hospitality. This can happen by mutual agreement, for example, with a temporary contract that expires, or by termination by one of the parties.

Check your employment contract

Last but not least, after all this information about the contract in hospitality, it is important to thoroughly check your own contract before signing it. If you need help, we are happy to assist you!

What should you look out for when signing a new employment contract?

• It must be a written employment contract.
• Read all the terms carefully before signing and have any necessary changes made.
• You sign one for yourself and one for the employer.
• You will, of course, receive a copy for yourself. This ensures that both you and your new employer are clear about the agreements made.