Chain Rule and Chain Provision in Utrecht
The chain rule regulates the number of temporary employment agreements that an employer may offer before a permanent contract becomes mandatory.
Basic Rule
An employee may receive a maximum of 3 temporary contracts within a period of 3 years. Upon exceeding this, the contract is automatically converted into a permanent position.
How does the counting work?
- A 4th contract results in a permanent contract
- If the total duration exceeds 3 years, a permanent contract arises
- An interruption of more than 6 months breaks the chain
Practical Example
Contract 1: 1 year → Contract 2: 1 year → Contract 3: 1 year → Upon extension, it becomes a permanent contract (exceeding 3 years).
Deviating Rules via CAO
A CAO may contain different arrangements:
- Maximum of 6 temporary contracts
- A period of maximum 4 years
- Only for specific functions with clear justification
Seasonal Work
For seasonal work, the interruption period of 6 months may be reduced to 3 months.
Prohibition on Revolving Door Constructions
Intentionally interrupting the chain to circumvent the rules, also known as a revolving door construction, is not permitted.
Statutory basis: Article 7:668a DCC
Frequently Asked Questions about the Chain Rule
When does a permanent contract arise under the chain rule?
A permanent contract arises if you have more than 3 temporary contracts within 3 years, or if the total contract duration is longer than 3 years. A fourth contract also means an immediate permanent position. An interruption of more than 6 months (or 3 months for seasonal work) breaks the chain and resets the count.
Can an employer evade the chain rule with a short break?
No, this is called a revolving door construction and is prohibited. If an employer deliberately inserts a break to avoid a permanent contract, this can be legally challenged. The court may then rule that a permanent contract exists nonetheless. Always keep your documents and emails as evidence.
Are there different rules in my CAO?
Yes, a CAO may deviate from the standard rules, for example with a maximum of 6 contracts in 4 years. This must be recorded in writing and have an objective reason (for example, for certain functions). Consult your CAO or contact your trade union or HR department.
What about seasonal work and the chain rule?
For seasonal work, the interruption period may be shortened from 6 to 3 months. If the break is longer than 3 months, the chain is broken. For example: if you work 3 summers with each a break of 4 months, no permanent contract arises. Check your agreement or CAO for details.
What if my employer does not provide a permanent contract after 3 contracts?
You can take legal action. First send a written request to your employer referring to Article 7:668a DCC. If this does not yield results, you can consult a lawyer or bring a case before the sub-district court. The court may enforce a permanent contract. Keep all contracts and communications as evidence.
Relevant institutions in Utrecht: District Court Midden-Nederland, Vrouwe Justitiaplein 1; Juridisch Loket Utrecht, Catharijnesingel 55