An employer made several mistakes with an employee on a temporary contract, forcing him to pay notice and transition compensation, among other things. This is evident from a recent ruling by the Rotterdam District Court.

Oral notice not sufficient

The employee was employed from November 6, 2023 to November 5, 2024 under two fixed-term employment contracts. The employer had indicated verbally that the contract would not be renewed, but had not confirmed this in writing. By law, an employer must give written notice that a temporary contract will not be renewed. Since this was not done, the employer must pay a notice fee of €1,433.69, including interest from Nov. 6, 2024.

Severance pay due

In addition, the employer must pay transitional compensation of €516.12. The employer claimed that the employee himself no longer wanted to work, but this could not be proven. The subdistrict court therefore assumed that the employer did not want to continue the employment contract. Interest on the transition compensation is awarded from December 6, 2024.

Wages and vacation pay

The employer must also pay wages up to the end date of employment, including vacation pay and the balance of outstanding vacation days. The employee was entitled to continued payment of her wages during illness, which the employer had failed to do. In addition, the employer had improperly set off wages against employer health insurance premiums. This is not allowed by law, so the employer must still pay these premiums without recovering them from the employee.

Final bill and statutory increase

The employee demanded a proper final settlement, which would include all the compensation awarded in the judgment. The subdistrict court gave the employer one month to prepare this final settlement. Because the employer failed to pay the said items on time, the employee is entitled to a statutory increase and interest on these amounts.

Case details

The employee was employed from November 6, 2023 to November 5, 2024 under two fixed-term employment contracts. The employer had indicated verbally that the contract would not be renewed, but had not confirmed this in writing. By law, an employer must give written notice that a temporary contract will not be renewed. Since this was not done, the employer must pay a notice fee of €1,433.69, including interest from Nov. 6, 2024.

In addition, the employer must pay transitional compensation of €516.12. The employer claimed that the employee himself no longer wanted to work, but this could not be proven. The subdistrict court therefore assumed that the employer did not want to continue the employment contract. Interest on the transition compensation is awarded from December 6, 2024.

The employer must also pay wages up to the end date of employment, including vacation pay and the balance of outstanding vacation days. The employee was entitled to continued payment of her wages during illness, which the employer had failed to do. In addition, the employer had improperly set off wages against employer health insurance premiums. This is not allowed by law, so the employer must still pay these premiums without recovering them from the employee.

The employee demanded a proper final settlement, which would include all the compensation awarded in the judgment. The subdistrict court gave the employer one month to prepare this final settlement. Because the employer failed to pay the said items on time, the employee is entitled to a statutory increase and interest on these amounts.

Source

This news release is based on an article by Salaris Vanmorgen, published March 26, 2025. For more information, see Salary Vanmorgen.