The Chain of Fixed-Term Contracts in Tilburg
In Tilburg—a vibrant city with a strong focus on sectors like retail, education, and hospitality—the chain rule plays a crucial role in Dutch employment law. This regulation prevents employers from indefinitely retaining employees in temporary positions and ensures greater job security in Tilburg’s labor market. Here, we explain how the chain works, its legal framework, and what it means for local employers and employees in the municipality of Tilburg.
What Does the Chain Rule Mean for Tilburg Employees?
The chain rule, as outlined in the Dutch Civil Code (BW), limits the number and duration of consecutive fixed-term contracts before an employer is legally required to offer a permanent position. This protects Tilburg residents from prolonged flexible employment and encourages employers to provide stable jobs in the local economy. The chain of fixed-term contracts describes this sequence, where breaks between contracts can affect the calculation.
By default, employers in Tilburg may offer up to three fixed-term contracts within a 24-month period. Exceeding this limit automatically converts the contract into an indefinite one. Collective labor agreements (CAOs) may deviate from this rule, but always in favor of the employee. In Tilburg, where many CAOs apply in hospitality and retail, it is advisable to check your CAO with the Tilburg Legal Desk.
Legal Framework for the Region
The chain of fixed-term contracts is based on Article 7:668a of the Dutch Civil Code, allowing a maximum of three consecutive fixed-term agreements within 24 months. A break of six months or longer resets the chain. An exception applies to seasonal agricultural work, allowing a nine-month period, which may be relevant for surrounding areas near Tilburg.
The Wet Werk en Zekerheid (WWZ, Employment and Security Act) of 2015 shortened the period from 36 to 24 months to limit flexible employment. Employers must specify the end date and any potential conversion to a permanent contract in writing (Article 7:655 BW). Failure to do so may result in an automatic permanent contract or compensation. In case of disputes in Tilburg, the District Court of Zeeland-West-Brabant in Breda is the competent authority.
In sectors like the temporary staffing industry (ABU-CAO), the chain may extend up to four years under specific conditions. Always verify the relevant CAO, which takes precedence over the law.
Practical Examples in Tilburg
Consider a junior employee in a Tilburg retail store who starts with a six-month contract, followed by a nine-month extension and then a twelve-month term—all within 24 months without a six-month break. The fourth contract automatically becomes permanent unless the chain is interrupted.
In Tilburg’s retail sector, which experiences peaks during events like the Tilburg Fair, employers hire temporary staff. Short breaks count as part of the same chain; only a six-month gap resets it. In the local hospitality industry, where seasonal demand fluctuates, a shorter break may suffice to interrupt the chain.
For an IT specialist in Tilburg’s tech companies working on project-based assignments, three contracts within two years will result in a permanent employment relationship. Employers in the municipality must carefully plan to avoid legal disputes.
Comparison: Standard vs. Deviating Chain
| Aspect | Standard Chain (BW) | Deviation via CAO |
|---|---|---|
| Number of Contracts | Maximum 3 | May be higher, e.g., 4 (staffing industry) |
| Duration of Period | 24 months | May be longer, e.g., 4 years |
| Break Requirement | 6 months | May be shorter for seasonal work |
| Consequence of Exceeding Limit | Permanent contract | Permanent contract, unless CAO states otherwise |
Rights and Obligations in Tilburg
Employee Rights:
- Automatic conversion to a permanent contract upon exceeding the chain.
- Protection against arbitrary dismissal; termination must be in writing.
- Right to demand a permanent contract via the subdistrict court in Breda in case of violations. Seek free advice from the Tilburg Legal Desk.
Employer Obligations:
- Provide written details on the chain and contract end date.
- Avoid manipulating the chain with short breaks.
- Pay a transition allowance for fixed-term contracts longer than six months (Article 7:673 BW).
Employees must fulfill their contractual obligations, but the focus remains on their protection in the Tilburg context.
Frequently Asked Questions About Fixed-Term Contract Chains in Tilburg
What if the chain is regulated differently in a CAO?
A CAO may deviate from the legal rules, but only in a way that is favorable or neutral to the employee. Review your sector-specific CAO; if no CAO applies, Article 7:668a BW governs. The Tilburg Legal Desk can assist with verification.