Employment contract

An employment contract sets out clear agreements between the employer and the employee. The employer and employee enter into an employment relationship that is important to both parties and entails potential risks. The contract specifies the terms and conditions of employment, such as the nature of the work, the probationary period, the salary and the duration of the contract.

A fixed-term or permanent contract

The employer decides, either in consultation or not, on the duration of the employment contract between the company and the (future) employee. Will it be for a fixed term or permanent? A fixed-term employment contract has an end date, which is also specified. A permanent employment contract does not yet have a fixed end date. Depending on the type of contract chosen, the employer will have different rights and obligations, including with regard to probationary periods and regulations concerning dismissal and termination of the contractual agreement.

Drawing up an employment contract

An employment contract is first discussed (in part) verbally. It is then important to draw up the contract in writing to avoid misunderstandings. Subjects such as salary, holiday entitlement, contract duration and probationary period cannot be set out clearly enough. It is also important to check that the company’s intellectual property rights and confidential business information are properly protected during and after the employment relationship. A confidentiality clause is included in the employment contract for this purpose.

When drawing up an employment contract, the following matters, among others, must be specified:

• Name and place of residence of the employee

• Position or duties of the employee

• Start date and possible end date of the employment

• Gross salary and fringe benefits

• Working days and working hours

• Duration of any probationary period

• Number of holiday days

• The location where the employee performs their work

• A confidentiality clause, non-competition clause or relationship clause

• Any travel or expense allowances

Terminating or dissolving an employment contract

Terminating an employment contract is not a simple matter. The employer must notify the employee of the termination within a certain period of time. This applies to both fixed-term and permanent contracts. In the case of a permanent employment contract, the employer can apply for a dismissal permit via the UWV or have the contract dissolved by the subdistrict court. In the case of a fixed-term employment contract, the employer must inform the employee at least one month in advance whether the employment contract will be renewed or terminated.

Dismissal or termination of employment contract

When dismissal is imminent or has taken place, it is wise for an employer to seek advice from a legal specialist. Dismissal cases are often complex and not always predictable. By engaging a solicitor at an early stage when terminating an employment contract, the facts can be clearly mapped out from the moment the dismissal was imminent. An employment solicitor can also provide valuable legal support in cases of summary dismissal and in situations involving a court.

Frequently asked questions / FAQs about employment contracts

What are the legal rules for terminating a fixed-term employment contract?

Legal rules apply when terminating a fixed-term employment contract. In principle, the contract ends by operation of law on the agreed end date, without the need for notice. However, the employer must give written notice at least one month before the end of the contract as to whether or not it will be renewed. This is known as the notification obligation. If this notification obligation is not fulfilled or is fulfilled too late, the employer will owe compensation amounting to one month’s salary.

Have your employment contract drawn up or reviewed

Would you like to draw up an employment contract that suits your company or have your contract reviewed by a solicitor? The specialists in employment law at Fruytier Lawyers in Business advise and support you in every area of law. By having one of our solicitors draw up an employment contract, you can be sure that the contract meets all your requirements and all legal requirements, and you can prevent potential labour disputes or ambiguities in the future.

Authors: Employment law solicitors Judy Sliepen and Myrddin van Westendorp