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Limited Term Contract Template for Netherlands

A Dutch Limited Term Contract is a fixed-duration employment agreement that complies with the Netherlands' employment legislation, particularly the Dutch Civil Code (Burgerlijk Wetboek) and the Work and Security Act (Wet Werk en Zekerheid). This contract establishes a defined period of employment between an employer and employee, including specific terms regarding duration, responsibilities, compensation, and working conditions. It incorporates mandatory Dutch labor law requirements such as the chain rule (ketenregeling), holiday allowance (vakantietoeslag), and notice periods, while providing clear terms for termination at the end of the fixed period.

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What is a Limited Term Contract?

The Limited Term Contract is a fundamental employment document used in the Netherlands when organizations need to hire employees for a specific duration or project. This contract type is governed by Dutch employment law, particularly the Dutch Civil Code and the Work and Security Act, which stipulate specific requirements including the maximum duration and number of consecutive fixed-term contracts permitted (the 'chain rule'). The document is essential for temporary positions, project-based work, seasonal employment, or when covering extended leave. It must include mandatory elements such as job description, working hours, salary, holiday allowance, and specific start and end dates. The contract ensures compliance with Dutch employment regulations while protecting both employer and employee interests during the fixed-term period.

What sections should be included in a Limited Term Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and reason for fixed-term contract

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and main responsibilities

5. Duration and Term: Specific start and end dates of the contract, including any probationary period

6. Working Hours and Location: Standard working hours, days, and primary work location

7. Salary and Benefits: Base salary, payment frequency, holiday allowance (vakantietoeslag), and other benefits

8. Holidays and Leave: Annual leave entitlement and public holidays

9. Illness and Incapacity: Sick leave procedures and sick pay arrangements

10. Confidentiality: Protection of company confidential information

11. Intellectual Property: Ownership of work created during employment

12. Data Protection: GDPR compliance and handling of personal data

13. Notice Period: Notice requirements for termination by either party

14. Governing Law: Application of Dutch law and jurisdiction

15. Signatures: Execution section for both parties

What sections are optional to include in a Limited Term Contract?

1. Non-Competition and Non-Solicitation: Restrictions on post-employment activities, only valid if justified by business interests

2. Company Property: Provisions regarding company equipment and resources, needed if employee receives company assets

3. Bonus Scheme: Performance-related bonus structure, included if applicable

4. Working from Home: Remote working arrangements and conditions, relevant for hybrid/remote positions

5. Training and Development: Professional development commitments and study cost arrangements

6. Car Allowance: Terms of company car or transport allowance if provided

7. Pension Scheme: Details of pension arrangements if offered beyond mandatory requirements

8. Share Options: Employee share scheme participation if offered

9. International Travel: Terms for international work if role requires travel

10. Secondary Activities: Rules regarding additional employment or business activities

What schedules should be included in a Limited Term Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines

2. Schedule 2 - Remuneration Package: Complete breakdown of salary and benefits

3. Schedule 3 - Company Policies: Key company policies including code of conduct, IT usage, and workplace behavior

4. Schedule 4 - Confidential Information: Specific details of what constitutes confidential information

5. Schedule 5 - Working Hours Schedule: Detailed working patterns including breaks and overtime arrangements

6. Appendix A - Employee Handbook Reference: Reference to and acknowledgment of employee handbook

7. Appendix B - Data Privacy Notice: Detailed information about personal data processing

8. Appendix C - Company Equipment List: Inventory of any company equipment provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Netherlands

Document Type

Employment Contract

Cost

Free to use

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