The Chain of Fixed-Term Contracts in Amsterdam
Amsterdam, with its vibrant economy driven by flexible roles in tourism, tech, and retail, relies on the chain rule to protect workers facing successive fixed-term contracts. This key provision in Dutch employment law prevents prolonged uncertainty and misuse of temporary work. We explore how the chain works, its legal limits, and what it means for Amsterdammers as employees or employers—including advice from local authorities like the Juridisch Loket Amsterdam.
What Does the Chain Rule Mean for Amsterdam Workers?
The chain rule, outlined in the Dutch Civil Code (Burgerlijk Wetboek, BW), limits the number and duration of fixed-term contracts before a permanent contract becomes mandatory. This safeguards young professionals and seasonal workers in the city against indefinite temporary roles and encourages employers to offer stability. In Amsterdam, where many entry-level jobs in hospitality or events are temporary, the fixed-term contract chain plays a critical role—with interruptions affecting the count.
By default, an employer may issue up to three fixed-term contracts within two years (24 months). Exceeding this triggers an automatic permanent contract. Collective labor agreements (CAOs), such as those in Amsterdam’s staffing sector, may allow more flexibility—but always to the employee’s advantage. For doubts, the Juridisch Loket Amsterdam offers free guidance.
Legal Framework of the Chain Rule
The foundation is Article 7:668a BW, permitting a maximum of three consecutive fixed-term contracts within 24 months. A six-month break resets the chain; for seasonal agricultural work, a nine-month gap applies. Since the Wet Werk en Zekerheid (WWZ) of 2015, the period was shortened from 36 to 24 months to curb flexible labor in cities like Amsterdam.
Employers must document the end date of a fixed-term contract and whether renewal is fixed (Article 7:655 BW). Failure to do so may result in a permanent contract or compensation via the Amsterdam District Court. Sector-specific CAOs—such as those in Amsterdam’s hospitality or IT industries—may deviate, like allowing a four-year chain in staffing. Review your CAO or consult the Juridisch Loket Amsterdam.
Practical Examples of the Chain in Amsterdam
Consider a barista in an Amsterdam café: six months temporary, followed by nine and twelve months within two years without a six-month break. The fourth contract becomes permanent. In retail along the Kalverstraat, employers often hire temporary staff for peak periods like King’s Day; short breaks count unless they exceed six months.
In the Zuidas, IT professionals frequently work on project-based contracts. Three contracts within 24 months? A permanent position follows. Amsterdam employers must strategize carefully to avoid litigation in the Amsterdam District Court, especially given the city’s strict labor market.
Comparison: Standard vs. CAO Deviations
| Aspect | Standard Chain (BW) | CAO Deviation |
|---|---|---|
| Number of Contracts | Maximum 3 | May be higher, e.g., 4 (staffing industry) |
| Duration Period | 24 months | May be longer, e.g., 4 years |
| Interruption | 6 months | May be shorter for seasonal work |
| Consequence of Exceeding | Permanent contract | Permanent contract, unless CAO specifies otherwise |
Rights and Obligations in Amsterdam’s Fixed-Term Contracts
Employee Rights:
- Automatic permanent contract upon exceeding the chain.
- Protection against arbitrary dismissal; terminations must be documented.
- Right to demand a permanent contract via the Amsterdam District Court if violated, with support from Juridisch Loket Amsterdam.
Employer Obligations:
- Provide written notice of contract terms and chain status.
- Avoid manipulating the chain with short breaks.
- Pay a transition allowance for contracts exceeding six months (Article 7:673 BW), relevant under Municipality of Amsterdam rules.
Employees must fulfill their contractual duties, but the focus remains on protection—especially in Amsterdam’s dynamic job market.
Frequently Asked Questions About Fixed-Term Contract Chains in Amsterdam
What if the chain is regulated differently in a CAO?
A CAO may deviate from Article 7:668a BW, but only in ways favorable or neutral to the employee. Check your sector’s CAO—or if none applies, the standard rules take effect. The Juridisch Loket Amsterdam assists Amsterdammers in verifying compliance.