1E9Ct5D

Doing business in the Netherlands 18time may be entered into for three consecutive times,which is currently the same, during which the totalperiod may not exceed two years, which period is currentlythree years. The fourth consecutive contract willbe considered to have been entered into for an indefiniteperiod. The same will apply if the total duration exceedsthe two-year period. For employment agreements to beconsidered non-consecutive, intervals should be morethan six months, which interval is currently threemonths.In CAOs it is allowed to deviate from the main rule forconsecutive employment agreements. Current legislationdoes not set a limit to this deviation option. Underthe new legislation it is only possible to deviate fromthese rules to a limited extent. The two-year period maybe extended to a maximum period of four years, and themaximum number of contracts may be raised fromthree to six, but only if it concerns temporary agencywork or the CAO shows that the intrinsic nature of thebusiness operation or the type of position or job categoryrequires such an extension or increase.Consequently, the CAO must include and explain whythe statutory consecutive employment agreementsarrangement is deviated from, which will limit theoptions for an extension or increase as well.4.2 Termination of an employment agreementWith respect to termination of an employmentagreement, a distinction must be made between anemployment agreement for a fixed period of timeand an employment agreement for an indefiniteperiod of time. There are several ways for employmentagreements to terminate:Probation periodParties can agree upon a probation period. However,it should be noted that a probation period is subjectto strict rules. A probation period for maximum2 months can only be concluded if parties haveagreed upon an employment contract for a fixedperiod of at least 2 years, or in case of an employmentcontract for an indefinite period of time. Anemployment contract for the limited period of lessthan 2 years and an employment for a specific project,where a termination date is not indicated, mayonly contain a probation period of 1 month. Duringthe probation period both the employer and theemployee can terminate the employment contractdirectly at any time. In order to be valid, the probationperiod has to be expressly agreed upon byparties in writing. Any deviation from the aforementionedrules will result in a void probation period.With the introduction of the Work and Security Act,the option to include a trial period in a temporaryemployment contract lapses as of 1 January 2015.A contract of a maximum of six months may now nolonger include a trial period.Lapse of the agreed periodAn employment agreement for a fixed period oftime will end by operation of law at the end of theagreed period of time without formalities.Summary dismissalThe employment agreement can be terminatedfor urgent cause; for instance, if the employee hascommitted a serious crime, such as, but not limitedto, theft, fraud, etc. Before a summary dismissalcan be given, all circumstances must be taken intoconsideration. Dismissal must be given withoutdelay, only the time necessary for an investigationinto the facts is usually allowed. The grounds forthe dismissal must be conveyed to the employeeat the moment of dismissal. The employment endsimmediately, without notice, and the employee isnot entitled to compensation. Usually, payment ofunemployment benefits is denied. The courts do noteasily accept that sufficient grounds are present todeem a summary dismissal valid. Before decidingon a summary dismissal, therefore always consult alegal advisor.The employee may challenge the dismissal itselfwithin 6 months, stating that he is still employed andis thus entitled to pay. Alternatively, the employeemay acquiesce in the termination of the employment,but claim damages for reasons that thegrounds for the dismissal were not valid. As a riskcontainment measure, it is advisable to file for dissolutionof the employment (see below).Death of the employeeThe employment agreement will terminate by operationof law in case of death of the employee: thefamily of the employee is entitled to be paid approximately1 month’s gross salary.Mutual consentThe employment agreement can be terminated bymutual consent; the entitlement to unemploymentbenefits still exists unless the employee him/herselfhas taken the initiative for termination or he/she has acted in such a way that there is an urgent