#Advanced employment law
Types of employment contracts/situations
Employment contracts for an indefinite period of time. If the employer and the employee have not agreed on a specific duration, an employment contract is considered to be entered into for an indefinite period of time. Employment contracts for an indefinite period of time may be terminated by:
- the death of the employee;
- summary (instant) dismissal;
- mutual agreement;
- the giving of notice (employers may only serve notice on an employee if they have been granted a dismissal permit from the Dutch Labour Office UWV WERKBedrijf - or by serving notice during the trial period);
- cancellation by the court (also referred to as dissolution).
Employment contracts for a fixed period of time. Employers can agree upon three successive fixed-term employment contracts, which automatically expire after the lapse of each term. However, a successive fixed-term employment contract will be converted into an employment contract for an indefinite term if the total period of employment lasts longer than 36 months; or a fourth employment contract is concluded following three successive fixed-term employment contracts.
Trial period. The employer and the employee may agree upon a trial period. During the trial period, the employment contract may be terminated by either party, with immediate effect, without compensation, by the giving of notice. A trial period must be agreed upon in writing and must be for a valid period of time. The valid trial period for a fixed-term employment contract of less than two years is one month. For an employment contract lasting two years or for an indefinite time period, the valid trial period is a maximum of two months.
Employee sickness: In the event that an employee is unable to work due to sickness, the employer must, in principle, continue to pay at least 70% of the last-earned salary for the first 104 weeks (two years) that the employee is unable to work. However, the sick-pay should not exceed 70% of the social security maximum, which amounts to approximately 4,000 euros gross per month (2010). In the Netherlands, it is not uncommon to agree on sick-pay of up to 100% of the last-earned salary for the first 52 weeks of sickness and 70% thereof for weeks 53 to 104.
Methods of contract termination
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