Termination Notice Obligation: What Employers Must Know
A missed notice can cost you a full month’s salary: here’s how to avoid it
The Dutch termination notice requirement may seem simple: as an employer, you must inform the employee, at least one month before the end of a fixed-term contract, whether it will be renewed, and under what conditions. Yet in practice, this often goes wrong. Employers forget to send notice, send it too late, or rely on verbal communication or assumed clarity. Recent court rulings confirm that such reasoning does not hold up and that the penalty for missing this step is steep: one month’s gross salary.
What does the notice obligation entail?
For fixed-term contracts lasting six months or more, the employer must notify the employee in writing at least one month before the contract ends. This notice must state whether the contract will be extended and, if so, under what terms. If this notice is late or missing altogether, the employer owes the employee a statutory compensation equal to one gross monthly salary. The law is strict: even if the employee knew the contract was ending, the penalty still applies without proper written notice.
Clarity is not a substitute for a written notice
In one case, an employee with a contract ending on 30 September 2023 claimed a notice penalty of €3,139.17. The employer argued that the employee already knew the contract wouldn’t be extended. The court disagreed. “Clarity” is not enough, only written notice satisfies the legal requirement. The employee was awarded the full compensation.
Mention in a settlement agreement is sufficient
Another case involved a disagreement about notice where the employer had referred to the contract’s end date in a written settlement proposal. Although the agreement was never signed, the court ruled that this written communication still met the legal requirement for notice. The fact that it was included in a draft agreement did not invalidate its legal effect.
Advance notice is allowed: short contracts are exempt
In yet another case, the employer included a written statement at the time of contract renewal that the new contract would not be extended again after expiry. This advance notice was deemed valid. Later, when the employee declined an offer for further renewal, the original notice still stood. Importantly, if the new contract was shorter than six months, no notice obligation would have applied in the first place.
The role of the Supreme Court
Dutch Supreme Court case law has further clarified the rule: if the written notice requirement is not met, the employer must pay the penalty, no matter how obvious the situation might have been to the employee. Courts have no room to adjust the outcome based on fairness or whether the employee experienced any actual disadvantage.
Practical tips for employers
Set calendar alerts: Let your HR system flag upcoming contract ends for fixed-term contracts of six months or more.
Always provide written notice: Send a letter or email clearly stating your decision, and make sure the employee receives it.
Include notice when renewing: When extending a contract, specify whether another extension will follow to avoid confusion.
Use draft settlement agreements wisely: A well-drafted document, even if unsigned, can help meet the legal requirement.
Conclusion
The termination notice requirement may seem like a formality, but it’s a costly legal trap for the unwary. The law is clear: late or verbal notices don’t count, and assumptions about clarity don’t save you in court. Only written communication meets the requirement. A simple oversight could cost you a full month’s salary, so stay alert, act in time, and put everything in writing.
This blog was written by Mr. Stijn Blom
Employment law attorney at expatlawyer.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and regulations – with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn’s page.
Expatlawyer.nl is happy to think along with you if you have questions about the topic of termination notice. Feel free to get in touch.
June 2025
