Applying the correct notice period is important when it comes to dismissal under Dutch labour law. A mistake could mean you (temporary) loose your entitlement to unemployment benefits. Here is how it works and what you should be aware of in case you resign or get dismissed.
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The notice period is the duration from the moment you resign (employee initiative) or are dismissed (employer initiative) until your actual termination date. Dutch employment contracts that are terminated have a notice period that depends on the duration of your labour agreement. Even if there is no mention of a notice period in your contract, a statutory notice period of at least 1 month applies. There are exceptions based upon your contract type or the agreement that you've made. If you work for a Dutch employer, here is all you need to know about the (statutory) notice period and keep your unemployment benefits.
Do you have a permanent contract? Then your standard notice period is 1 month. This means that if you want to resign, you must cancel your contract 1 calendar month in advance. The notice period starts from the 1st of the following month.
Suppose you want to resign on March 1st, then you must give notice in writing before February 1st at the latest. You still have to work in February.
You may agree upon a longer notice period with your employer. This extended notice period should be included in your contract though. Your notice period may never extend 6 months. Is your notice period longer than 1 month? Then your employer's notice period must be twice as long. Suppose you agree on a notice period of 4 months, then your employer must adhere to a notice period of 8 months.
You may agree on a shorter notice period with your employer as well, as long as this is stated in your collective labor agreement (cao). In that case, you don't need to have this clause included in your employment contract to be applicable.
Do you have a fixed-term contract? For example, an employment contract for the duration of 12 months? Your contract will then automatically end on the agreed termination date. In this case you don't have a notice period at all.
Although you don't have to deal with a notice period when you're on a temporary contract, it's a bit different for your employer. If your fixed-term contract is longer than 6 months, your employer must inform you (in writing) at least 1 month before the end date if it wants to renew your contract. This is called aanzegverplichting in Dutch. There is no exact English translation, but it comes down to a notification obligation.
If your employer doesn't inform you in time whether or not your fixed-term employment contract (of 6 months or longer) will be continued, he then owes you a compensation of 1 month's salary. Did your employer comply to the notification obligation, but was he too late? Then he owes a proportionate compensation.
For example: if your employer is one week late, this means compensation of one week's salary. This compensation is not due in case of bankruptcy, deferral or application of the debt restructuring scheme for natural persons.
A fixed-term contact starts and ends on previously agreed dates. You are not allowed to resign earlier, unless you have included an interim termination clause in your employment contract. It that is the case, you can terminate your contract sooner.
As you might have expected, there are some exceptions to giving notice. In some occasions a notice period doesn't apply or gets extended.
In the occasions below, you and/or your employer don't have to give notice:
You are on your trial period;
You get summary dismissal due to gross misconduct;
You resign with immediate effect due to a contract breach.
In some cases, the statutory notice period may be extend for older employees:
who were hired before 1999;
who were 45 years of age at that time, and;
whose contractual notice period exceeds the current statutory notice period.
In case you are drafting a settlement agreement, both you and your employer should apply the correct notice period. Here is how it works with the statutory notice period.
The applicable notice period is usually included in your employment contract. If there is no reference to it or if your contract refers to the statutory notice period, the correct amount of notice depends on your length of service. The longer you have been employed, the longer the statutory notice period for your employer gets.
Less than 5 years: 1 month notice period;
Between 5 and 10 years: 2 months notice period;
Between 10 and 15 years: 3 months notice period;
Longer than 15 years: 4 months notice period.
These longer statutory notice periods don't apply for you as an employee. That is always limited to 1 month, regardless of the duration of your service.
Have you just received a settlement agreement or are you willing to resign based on mutual consent? Have our labour lawyers perform a basic check to find out what's missing or should be improved. That doesn't cost you anything.
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