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Chain Rule for Fixed-Term Contracts in Delft

Discover the chain rule for fixed-term contracts: after three jobs or two years, you get a permanent contract. Relevant for Delft with TU Delft and startups. Advice via the Delft Legal Helpdesk.

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Chain Rule for Fixed-Term Contracts in Delft

The **chain rule for fixed-term contracts** is a fundamental aspect of Dutch employment law, particularly relevant for residents of Delft, where temporary positions are common in sectors such as education and technology. This legal provision limits the number of consecutive fixed-term employment agreements to prevent employers from systematically maintaining job insecurity among employees. After a maximum of three fixed-term contracts or a total duration of two years, an indefinite employment contract automatically applies.

What Does the Chain Rule Mean for Delft?

In Delft, with its thriving academic and innovative environment centered around TU Delft, the chain rule—also known as the 'successive contracts rule' or 'chain rule'—ensures greater job security. It governs the sequence of fixed-term contracts (employment agreements for a definite period) and prevents employers, such as universities or local startups, from indefinitely keeping employees in flexible roles. This promotes stability in a city where many young professionals and students enter the labor market.

The core principle: a maximum of three consecutive fixed-term contracts within 24 months. Exceeding this limit automatically converts the contract into a permanent one. This applies to both direct and indirect successive agreements, with a gap of no more than six months between them. For Delft residents working in the region, it is useful to know that disputes are handled by the **District Court of The Hague**.

Legal Foundation

Article 7:668a of Book 7 of the Dutch Civil Code (BW) serves as the basis: *'A fixed-term employment agreement that has been entered into at most twice and has a duration of no more than two years shall be deemed an indefinite employment agreement if the agreement has not ended after two years.'*

Introduced through the **Wet Werk en Zekerheid (WWZ, Employment and Security Act)** in 2015 and tightened by the **Wet Arbeidsmarkt in Balans (WAB, Balanced Labor Market Act)** in 2020, the period was reduced from three to two years, and the interruption limit from three to six months. This restricts the flexible labor market, which is noticeable in Delft at institutions like the **Municipality of Delft** or local tech companies. The count resets after interruptions longer than six months (longer for seasonal work), and collective labor agreements (CAOs) may only set more favorable conditions for employees.

Application in Delft’s Practice

**Example:** A researcher at TU Delft starts with a six-month fixed-term contract, followed by a nine-month and a twelve-month contract—totaling 27 months. The third contract automatically converts into a permanent position, which is crucial for career planning in the city.

The chain includes all fixed-term agreements within two years, including short interruptions. A pause of less than six months keeps the chain intact; for example, a contract from January to June, three months of inactivity, and then October to March counts as one sequence. Employers in Delft must explicitly state whether a contract breaks the chain, in compliance with WWZ rules regarding probation periods and termination.

Exceptions Specific to Delft

Certain fixed-term contracts are exempt from the standard chain rule, particularly in local sectors:

  • CAO Agreements: CAOs in education or construction may allow up to four contracts or four years, provided they do not harm employees—such as seasonal work at Delft events.
  • Small Employers: Businesses with fewer than ten employees in Delft benefit from more lenient termination rules under the WAB, but the chain rule still applies.
  • Specific Sectors: In hospitality around the city center or education at TU Delft, CAOs provide more flexible rules for temporary staff.
  • Successive Contracts: Covering for sick colleagues, such as in the Municipality of Delft, does not count toward the chain.

Check your CAO for Delft-specific nuances. For personalized advice on fixed-term contracts, visit the **Delft Legal Helpdesk** or read our article Fixed-Term Employment Agreement.

Practical Examples from Delft

Example 1: Chain Exceeded
A graphic designer at a Delft startup signs three contracts in 2023: six, six, and nine months (totaling 21 months). The third contract becomes permanent in 2024, and the employer must notify this in writing.

Example 2: Breaking the Chain
An employee at a local store has two contracts in 2023 (totaling 18 months), followed by a seven-month break. A new contract in 2024 starts a fresh chain with three possible temporary positions.

Example 3: CAO Exception
The construction CAO in the Delft region allows four contracts within three years for seasonal workers. A bricklayer with three summer assignments does not automatically gain permanent status after the third.

Rights and Obligations in a Delft Context

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 adhere to notice periods.
  • Clarify chain status in writing with the employer if unclear.

Employer Rights:

  • Hire temporary staff for projects, such as at TU Delft research.
  • Break the chain with longer interruptions.

Employer Obligations:

  • Inform employees in writing about the chain impact at contract start.
  • Maintain transparency to avoid disputes at the **District Court of The Hague**.

For Delft residents, the **Delft Legal Helpdesk** offers free initial assistance with employment questions.

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