As of 1 January 2015, there is a new obligation for employers under the Work and Security Act (WWZ), the so-called notification obligation. In practice we notice that notification and termination are often confused with each other, or that this is seen as the same thing. For clarification, we have therefore written this blog.
Difference between notification and termination
Notification and termination must be viewed separately from each other.
Notification merely means that an employer (is obliged to) let the employee know at least one month before the end of the fixed-term employment contract of 6 months or more, whether he wants to extend the employment contract and, if so, under what conditions. If the employer does not give notification, there are certain sanctions, but the employment relationship still ends when the agreed duration expires. No action is required for this from either the employer or the employee. Do note tacit renewal if the employee continues working after the end date after all.
Termination, on the other hand, is ending the employment relationship during the term of the employment contract. The employer can terminate an employee’s employment contract, provided there is a reasonable ground for it and the statutory requirements have been met. For a fixed-term employment contract, an additional requirement applies: an interim termination clause must have been agreed, otherwise it cannot be terminated during the term.
In short:
- Notification is merely confirming whether or not the employment relationship ends after the agreed end date, and, in case of extension, under what conditions the employer then wants to extend.
- Termination is ending the employment relationship (with UWV permission) during its term.
SME Tips
- Because of the sanctions for not (fully) complying with the notification obligation, there is all the more reason to keep track of expiring contracts and the notification period. Before the WWZ, this was only relevant to ensure that an employee employed for a fixed term did not keep working after the end date, since otherwise the employment relationship would be tacitly continued. This, incidentally, remains a point of attention under the WWZ as well.
- Then take timely action regarding expiring contracts. Make sure notification is given on time and correctly, and make sure the employee does not keep working after the end date if you have not extended.
SME Tools
We have the following tools to help you with the tips just mentioned:
The Legal Safe
This is a full-service online application for WWZ-proof legal personnel and file management for €95 per month. With Legal Safe’s warning and instruction emails, you are fully relieved of worries regarding expiring contracts. You also have an employment lawyer ‘in the cloud’ by your side to answer questions. Furthermore, you have access to complete and up-to-date employment documentation with model employment contracts, including for fixed-term contracts, including a model staff handbook, model regulations and model letters that fully comply with the WWZ. For more information, see our Employment Law Membership page.