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Chain Rule for Fixed-Term Contracts in Tilburg

Discover Tilburg’s chain rule for fixed-term contracts: after three jobs or two years, employment becomes permanent. Protection for local workers in industry and hospitality. (128 chars)

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Chain Rule for Fixed-Term Contracts in Tilburg

The chain rule for fixed-term contracts is a key regulation in Dutch employment law that limits the number of consecutive temporary positions. This protects Tilburg employees from prolonged uncertainty, particularly in sectors like local industry and retail. After three successive fixed-term contracts or two years of employment, the contract automatically converts into a permanent employment agreement.

What Does the Chain Rule Mean for Tilburg?

In Tilburg, where many jobs in manufacturing and hospitality are temporary, the chain rule – also known as the 'succession law' – prevents employers from keeping workers in a state of perpetual uncertainty. Its purpose is to combat abuse and promote stable employment in the region. Without this law, temporary workers in Tilburg businesses like textile factories or city-center shops could remain on probation indefinitely.

The rule allows a maximum of three fixed-term employment contracts within a 24-month period. If this limit is exceeded, the contract automatically becomes indefinite. This applies to contracts that follow directly or with a gap of no more than six months – a practical consideration for seasonal work in Tilburg’s event industry.

Legal Basis and Recent Changes

The chain rule is outlined in Article 7:668a of the Dutch Civil Code (BW), Book 7: *'A fixed-term employment contract that has been entered into at most twice and has a duration of no more than two years shall be deemed an indefinite employment contract if the contract has not been terminated after two years.'*

Introduced through the Wet Werk en Zekerheid (WWZ – Flexible Employment Act) in 2015 and tightened by the Wet Arbeidsmarkt in Balans (WAB – Labour Market Balance Act) in 2020, the period was shortened from three to two years, with a longer break of six months (previously three months) required to reset the chain. This adjustment helps balance Tilburg’s flexible labour market, where many newcomers enter through temporary roles. Collective Labour Agreements (CAOs) may deviate, but only in ways that benefit the employee; check your Tilburg employer’s CAO.

The chain resets after a break longer than six months, or longer for seasonal work – useful for roles in Tilburg’s fairground or agricultural sectors.

Application in Tilburg Practice

Example: An employee in a Tilburg retail store starts with a six-month contract, followed by a nine-month contract, and then a twelve-month contract. The total of 27 months exceeds the limit, so the last contract becomes permanent. In the region, every period counts, including short breaks.

If there’s a gap of less than six months – such as three months between two jobs at a local production company – it remains part of the same chain. Tilburg employers must indicate when a new contract continues the chain, in compliance with WWZ rules on probation periods and termination.

Exceptions for Tilburg Situations

Not all fixed-term contracts in Tilburg fall under the chain rule. Key exceptions include:

  • CAO provisions: In sectors like education or hospitality in Tilburg, a CAO may allow up to four contracts or four years, provided it benefits the employee.
  • Small employers: Tilburg SMEs with fewer than ten employees have a more flexible termination procedure under the WAB, but the chain rule remains unchanged.
  • Specific industries: Seasonal work in Tilburg’s agriculture or events sector may have different CAO rules.
  • Replacement contracts: A temporary contract for a sick colleague at a Tilburg hospital does not count toward the chain.

Review your sector’s CAO and, for personal advice, visit the Tilburg Legal Advice Desk. For more on fixed-term contracts, see our article Fixed-Term Employment Contracts.

Tilburg Case Examples

Example 1: Chain Exceeded
A graphic designer at a Tilburg advertising agency signs three contracts in 2023: six, six, and nine months (total 21 months). The third contract automatically becomes permanent in 2024; the employer confirms this in writing.

Example 2: Chain Broken
An employee in a Tilburg supermarket has two contracts in 2023 (total 18 months), followed by a seven-month break. In 2024, a new temporary contract begins; the counter resets to zero.

Example 3: CAO Exception
In Tilburg’s construction sector, the CAO allows seasonal workers up to four contracts within three years. A carpenter with three summer assignments does not receive a permanent contract after the third.

Rights and Obligations in Tilburg

Employee Rights:

  • Automatic conversion to permanent status upon exceeding the limit.
  • No probation period for the third contract.
  • Transition payment if contracts exceed six months.

Employee Obligations:

  • Fulfill contract terms and follow termination procedures.
  • Clarify chain status in writing with the employer if unclear.

Employer Rights:

  • Hire temporary staff for projects or seasonal work in Tilburg.
  • Break the chain with sufficient downtime.

Employer Obligations:

  • Inform employees in writing about the chain’s impact when starting a new contract.
  • In case of disputes: possible referral to the District Court of Zeeland-West Brabant in Breda or mediation via the Municipality of Tilburg.

For assistance in Tilburg: Contact the Tilburg Legal Advice Desk for free guidance on your employment situation.

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