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Types of Employment Contracts

When hiring staff you have different options. This way you can choose from fixed and flexible contracts.

With permanent contracts you can retain employees for a longer period of time. If you opt for flexible contracts, flexibility makes it easier to cope with peaks and troughs.

As an employer, it's wise to be aware of all possibilities. That way you know which type of employment contract best fits the situation of your company and the relevant position. For example, you can rely on permanent or flexible staff only, or a mix of these.

pay attention

Each type of employment contract has advantages and disadvantages and specific points for attention. Also, you can usually not just terminate an employment contract. Therefore let yourself be advised by a lawyer or lawyer. That way you can arrange everything properly.

Employment contracts, 6 types:

1. Employment contract for an indefinite period (permanent contract)

An employment contract for an indefinite period of time is also called a permanent contract or permanent employment contract.

The difference with temporary employment is the manner of termination. This is often dismissal with mutual consent or dismissal through the UWV or the subdistrict court judge. This is in contrast to a temporary employment contract that usually ends automatically.

Termination options:

- Dismissal during probation
- Dismissal by mutual consent
- Dismissal through the UWV or through the sub-district court
- Resigned on the spot

2. Employment contract for a definite period (flexible contract)

We also call a fixed-term employment contract a temporary contract or temporary employment. You enter into that for a certain period, for example a half year or a year. After that, the agreement usually ends automatically.

You can extend a temporary contract twice. The third time, or after a total duration of two years, an employment contract for an indefinite period of time arises. If you don't renew a temporary contract for six months or longer, you as an employer must take the notice period into account .

Termination options:

- Dismissal during probation
- Don't renew (and cancel) contract
- Early termination (if included in the employment contract)
- Dismissal throght the sub-district court
- Dismissal by mutual consent
- Resigned on the spot

Pay attention

If your company falls under a mandatory collective agreement, you may have to take into account specific provisions regarding temporary contracts.


Do you want to be able to respond well to a varied work offer? Then opt for a min-max contract .

3. Temporary employment contract (flexible contract)

A temporary employment contract is characterized by flexibility. You hire a temporary worker when necessary and you can, in principle, get rid of it.

You also have no continued payment of wages in the event of illness, such as for employees with an employment contract. The employment agency is the official employer and is responsible for the wage.

When you hire a temporary worker you have to take into account a number of points for attention .

Termination options

Send the temporary worker back to the employment agency

4. Secondment agreement (flexible contract)

When posting, an employee works elsewhere on a temporary basis. For example, an employee is on the payroll at a posting company. This company can then lend staff to you on the basis of a secondment agreement.

Just as with a temporary employment contract, you don't have to continue paying wages in the event of illness. You'll, however, have to consult the secondment office on matters such as vacations, salary increases and training.

Termination options:

Terminate a secondment agreement

5. Model agreement (flexible contract)

You can hire a freelancer or self-employed person, among other things, to do a specific job or because you need his expertise temporarily. You can record the agreements in a model agreement . When the assignment is completed, you immediately say goodbye to each other.

It's important that the self-employed person isn't a disguised employee, with the associated rights and obligations. Many clients therefore use a model agreement approved by the Tax Authorities. This can provide more clarity about the employment relationship, but then you have to work according to the model agreement.

Termination options

Cancel model agreement

6. Call agreement (flexible contract)

A call agreement, such as a zero -hour contract or a min-max contract, is useful if you don't need an employee for the same number of hours every week. The employee is then available on a call basis. But beware: if you call the employee regularly, he will soon be entitled to a permanent contract.

Termination options

See under fixed-term or indefinite employment contract (depending on the type of employment contract)

Important: Please check the low in your country as this 'any mentioned low here' is may differs between countries.

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