Ketenregeling

Chain provision

The chain rule limits the number of successive fixed-term employment contracts. After three contracts or a total duration of 24 months within a chain, an employment contract for an indefinite period arises.

The chain rule, as laid down in Article 7:668a of the Dutch Civil Code, determines when a series of successive fixed-term employment contracts converts into a contract for an indefinite term. An interruption of no more than six months between contracts is permitted; a longer gap causes the chain to restart.

The provision is intended to prevent abuse of fixed-term contracts and to afford employees greater security of employment. Employers must therefore maintain accurate records of the duration and frequency of an employee’s fixed-term engagements.

In practice, the chain rule most commonly applies to seasonal work, project-based assignments and flexible staffing arrangements. Exceeding the statutory limits results in a contract for an indefinite term, unless the parties agree otherwise in writing within the statutory exceptions.

“Due to the chain rule, the third fixed-term contract automatically converted into an employment contract for an indefinite term.”

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