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 outlines the terms and conditions of the job. It sets out the responsibilities and rights of both parties. An employment contract must comply with the applicable statutory employment conditions.

Different types of employment contracts in the hospitality industry

Fixed-term employment contracts

In a fixed-term employment contract, the duration of the contract is predetermined. The period you decide upon can be of any length. The employment contract must include a start and end date. The employment relationship then automatically ends when the agreed period is over. You do not need to give notice.

As of 1 January 2015, your employer is required to inform you in writing at least one month before your temporary contract ends whether your contract will be renewed or not, and if so, under what conditions. This is known as the notice obligation. The notice obligation applies to contracts that have been entered into 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 notice was late, with a maximum of one gross monthly salary.

Permanent employment contracts

An employment contract with an indefinite term has no fixed end date and remains in effect until one of the parties chooses to terminate the contract. 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 a chain arrangement. 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 arrangement:

• You have a work-study agreement for a BBL course (vocational guidance 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 give you 6 temporary contracts over a period of 4 years from the state pension age.

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

Employment conditions in hospitality

An employment contract sets out the employment conditions, organising 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 hospitality CLA (appendix II) what your salary 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 hospitality CLA therefore specifies exactly what you are entitled to regarding working hours in hospitality. Agreements have been made regarding scheduling, overtime, public holidays, and breaks.

Holidays and holiday pay

As an employee in the hospitality sector, you are entitled to holidays and holiday pay. The number of holidays is determined based on the number of hours worked. Check our page on holidays in hospitality for a detailed explanation of the number of holidays. 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 you report your illness as described in the company regulations. In case of illness, you are entitled to continued payment of wages, and your employer has the right to impose an unpaid waiting day.

Categories of employees in the hospitality industry

The hospitality CLA recognises different categories of employees:

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

As a zero-hour casual worker, you have a zero-hour contract, which means there is no fixed number of hours established. You are employed on a call basis, depending on the company's needs. 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 recruited due to peak demand in the hospitality industry, for example in holiday resorts or ski resorts.

Seasonal worker climate and nature is a specific category of seasonal workers who are only employed for a maximum of 9 months due to climatic or natural conditions. This means 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 the hospitality industry. The skilled worker has completed training for this or has demonstrably gained sufficient experience in the position (this is referred to when there are more than 1,976 hours of experience in the same position). If you are classified in job group 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 a 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 the classification and whether or not to receive a holiday allowance. As an unskilled worker, you receive at least the basic salary in job group 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 group 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, not all parts of the CLA apply to all categories of employees.

Hospitality agency workers

It is possible to work at a hospitality business 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 wages are 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. Find more information about the agency CLA.

Freelancer in the hospitality industry

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

Rights and responsibilities of employees in the hospitality industry

As an employee 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 required to pay employees on time and according to the agreed salary terms. It is important to regularly check your payslips to ensure everything is correct.

Working conditions and safety

As an employee, 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 the hospitality industry

An employment contract can be terminated in various ways in the hospitality industry. 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 the hospitality industry, it's important to thoroughly check your own contract before signing it. If you need help, we're 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 things adjusted where necessary.
• You sign one for yourself and one for the employer.
• You will, of course, receive a copy yourself. This makes it clear for both you and your new employer what agreements have been made.