Contract extension: here’s how it works

04-06-2021

How often can your employer offer you a temporary contract? Can a permanent contract that has already been offered be withdrawn? And what about pregnancy and probation periods? Legal expert Dimphy Hermus from de Horecabond provides answers to questions about contracts and contract extensions.

Can my employer refuse to extend my contract because I am pregnant?

“A frequently asked question. An employer may decide not to extend a fixed-term employment during pregnancy. There is no obligation to extend contracts for pregnant employees. However, pregnancy should not be the reason for not extending your contract. Therefore, we always advise asking for written confirmation with a reason in such cases.”

Can my employer agree on a new probation period upon extension?

“Employers seek flexibility, but this is not the way. In principle, no new probation period can be agreed upon during an extension. This is only possible if you take on a new role with different requirements, tasks, responsibilities, and/or authorities. The duration of a probation period is legally defined. For contracts of indefinite duration or at least two years, it is two months; otherwise, it is one month. A probation period is only valid if included in your employment contract and can only be agreed upon for employment contracts longer than six months. It is important that the probation period must be the same length for both parties and cannot be adjusted or extended.”

What is a notice period?

“The notice period is the minimum time the employer must adhere to for the written message on whether they wish to extend your contract. This period is one month before the end of the employment. This notice period applies to temporary employment contracts of six months or longer. It may be that the notice is included in the employment contract; if so, the employer may have already fulfilled their obligation. Therefore, always check your employment contract first. Your employer must inform you of their plans in a timely manner. Failing to give notice on time does not change the end date of the contract.”

What is a notice compensation? And what if I do not have a fixed number of hours?

“If the employer has not adhered to the notice period, you may be entitled to notice compensation. The notice compensation amounts to a maximum of one gross monthly salary. The exact amount depends on the number of contract hours or the average number of hours worked per month. You will need the help of a legal expert to claim the possible notice compensation. It is important to keep in mind the expiration period: the claim must be submitted within two months after the end of the employment.”

Can a contract be tacitly extended?

“This can happen if you continue working after the end of your employment and the employer allows you to continue working. Then there may be a tacit extension. According to the Civil Code, the old agreement is then continued under the same conditions, but for a maximum of one year. In the case of a tacit extension, you are therefore not obliged to sign a new employment contract. Our advice: before you sign anything, have it reviewed by a legal expert.”

When does my temporary contract become a permanent contract?

“This is regulated in the chain regulation. The principle is that a temporary contract is converted into a permanent position with the fourth employment contract or if the term of three years is exceeded.”

What does the chain regulation entail?

“This regulation is stipulated in the Balanced Labour Market Act. It states that an employee may receive a maximum of three employment contracts within a maximum of three years. Only if the break between two employment contracts is longer than six months does the count start again. Note: this can sometimes be deviated from in the CLA, but this is not the case in the CLA hospitality, CLA recreation, and/or CLA catering.” View the Updates agreements in the CLA's.

Can my employer withdraw the already offered permanent contract?

“No, in principle, an offer is considered valid once you have accepted it. The employer cannot simply terminate your employment contract after acceptance, for example, if it has already been signed. The normal rules of dismissal law then apply. If this happens to you, contact one of our legal experts.”

The company I work for has been taken over. What happens to my contract?

“Nothing. The buyer of the company you work for is not allowed to change the employment contracts or dismiss employees. You retain the same employment conditions as before. Therefore, it is important not to sign anything and to contact our legal experts if necessary.”