With an employment contract, employer and employee lay down clear agreements in a contract. Employer and employee enter into a working relationship that is important for both parties and involves potential risks. The agreement discusses terms of employment, such as the content of the work, probationary period, salary and duration of the contract.
Fixed-term and open-ended contract
The employer decides, by mutual agreement or not, the duration of the employment contract between the company and the (future) employee. Will it be for a definite or indefinite period? A fixed-term employment contract has an end date, which is also fixed. An open-ended employment contract does not yet have a fixed end date. Depending on the type of contract chosen, the employer will be faced with different rights and obligations, including probationary periods and regulations regarding dismissal and termination of the contractual agreement.
Drawing up an employment contract
An employment contract is first discussed (partly) verbally. It is then important to draw up the agreement in writing to avoid misunderstandings. Topics such as pay, holidays, duration of the contract and probationary period cannot be drafted clearly enough. It is also important to check whether the company’s intellectual property rights and confidential business information are properly protected during and after the employment. For this purpose, a confidentiality clause is included in the employment contract.
When drafting an employment contract, the following items should be recorded, among others:
- Name and place of residence of employee
- Function or activities of the employee
- The start and end date of employment
- Gross salary and fringe benefits
- Working days and working hours
- Duration of any probationary period
- The number of holidays
- The location where the employee performs work
- A confidentiality, non-competition or non-solicitation clause
- Any travel or expense allowance
Terminating or dissolving an employment contract
Terminating an employment contract is not easy. The employer must inform the employee of the termination within a certain period of time. This applies to a fixed-term and an indefinite-term contract. With an employment contract for an indefinite period, the employer can apply for a dismissal permit via the UWV or have the contract dissolved via the subdistrict court. With a fixed-term employment contract, the employer must tell the employee at least one month in advance whether the employment contract will be extended or terminated.
Dismissal or termination of employment contract
The moment a dismissal is imminent or has taken place, an employer would be wise to seek information from a legal specialist. Dismissal cases are often complex and not always predictable. By engaging a lawyer at an early stage when terminating an employment contract, facts are clearly identified from the moment the dismissal was imminent. An employment lawyer also provides valuable legal support in cases of summary dismissal and in situations involving a judge.
Have your employment contract drafted or reviewed
Would you like to draw up an employment contract that suits your company or have your contract reviewed by a lawyer? The employment law specialists at Fruytier Lawyers in Business advise and support you in every area of law. By having an employment contract drafted by one of our lawyers, you can be sure that the contract meets your and all legal requirements, and you will avoid possible labour disputes or ambiguities in the future.« Back to employment law