Have you had several successive contracts with the same employer and are you now receiving a settlement agreement? If so, your situation is considerably more complex than that of someone with a single continuous contract. Your contract history has a direct bearing on your rights, your compensation and your entitlement to unemployment benefit. In this article you can read what to look out for.
What the chain rule means for your settlement agreement
If you have had several fixed-term contracts with the same employer, the first question is: do those contracts legally constitute one chain? This is governed by the chain rule (Section 7:668a of the Dutch Civil Code). Since 1 January 2020, a fixed-term contract automatically converts to a permanent contract if you have received more than three successive fixed-term contracts, or if you have worked on multiple fixed-term contracts with the same employer for more than three years. For this to apply, the gap between contracts must be no more than six months.
Why does this matter for a settlement agreement? If your chain of contracts should already have led to a permanent contract but your employer ignored this, you are in a stronger negotiating position than you might think. It is always advisable to have this assessed before you sign anything.
How previous contracts count towards redundancy pay
A settlement agreement typically includes a redundancy payment. The amount depends on your monthly salary and the total length of your employment. A misconception that employers sometimes rely on is to take only the most recent contract as the starting point. This is legally incorrect where earlier contracts form part of the same chain.
The general rule is: contracts that succeed one another with a gap of no more than six months together count as one continuous period of employment. The gaps themselves do not count towards the calculation. In practical terms, this means: if you had three one-year contracts each separated by a four-month gap, your total length of service is three years, not one. The statutory accrual rate is one third of a monthly salary for each full year of service. In 2026, the maximum redundancy payment is € 102,000 gross, or one gross annual salary if that figure is higher.
Successive employment and what it changes
Sometimes you may not only have had multiple contracts with one employer but, for example, may have worked initially through a temp agency or payroll company before being taken on directly. In that case, there may be successive employment. This means that the period with the previous employer can also count towards your redundancy payment and notice period, provided you continued doing comparable work and the break was no longer than six months.
This is a point that is regularly overlooked in settlement agreement negotiations, yet it can substantially affect your compensation.
Unemployment benefit rights with a settlement agreement involving multiple contracts
To be eligible for unemployment benefit after signing a settlement agreement, the agreement must satisfy a number of conditions. The initiative for dismissal must lie with the employer, there must be no urgent reason for dismissal, and the notice period must have been correctly observed or compensated. Where a chain of contracts is involved, it is particularly important that the end date in the settlement agreement aligns with the notional notice period corresponding to the total length of employment — not just the most recent contract.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekIf the notice period is incorrect, the UWV may temporarily refuse or delay payment of unemployment benefit. This is something you absolutely want to avoid.
Practical points to consider when you receive a settlement agreement
Have you received a settlement agreement after having had multiple contracts? Pay attention to the following:
- List all your contracts in order: start and end dates, gaps between them, and the type of contract for each period.
- Check whether your employer has calculated your length of service correctly — using only the most recent contract as the basis is almost always wrong.
- Establish whether the chain should already have led to a permanent contract. If so, your negotiating position is stronger.
- Consider whether successive employment applies, particularly if you ever worked through a temp agency or payroll arrangement.
- Check the notional notice period: it must correspond to your total length of employment, not to the shortest contract.
- Ensure the settlement agreement contains the correct wording that protects your unemployment benefit entitlement, including reference to employer initiative and the absence of an urgent reason for dismissal.
- Make use of the fourteen-day cooling-off period after signing if something turns out to be incorrect.
When a break breaks the chain
A break of more than six months breaks the contract chain. This means that earlier contracts no longer count towards your length of service and a new count begins. If you once had a longer period during which you did not work for the same employer, the question is which contracts are still relevant to your settlement agreement. This is not always straightforward and depends on the exact dates, the length of the break, and sometimes also collective agreement provisions that allow for different time limits.
It is therefore sensible to draw up a timeline of all your working periods and have it assessed by an employment law specialist before signing a settlement agreement.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we know the local labour market and support employees in Eindhoven and the Brabant region with exactly these kinds of complex situations. A settlement agreement with multiple contracts in the background calls for a tailored approach: which contracts count, is the compensation correct, and will you be protected when claiming unemployment benefit? We set it all out for you clearly and without legal jargon. Get in touch for a no-obligation conversation — we would be glad to look at your situation together.
Frequently asked questions
Do all my previous fixed-term contracts count towards the redundancy payment in my settlement agreement?
That depends on the gaps between them. Contracts that succeed one another with a maximum gap of six months together form one chain and jointly count as length of service. Gaps of more than six months break the chain. It is advisable to list all your contract dates and have them assessed by an employment law specialist.
What if my employer uses only the most recent contract as the basis for the redundancy payment in the settlement agreement?
In that case, the calculation is likely too low. If earlier contracts form part of the same chain, the total length of service must be used as the starting point. You can request and check the calculation breakdown. If the amount is incorrect, you can negotiate before signing.
Can I claim unemployment benefit as normal after a settlement agreement involving multiple contracts?
Yes, provided the settlement agreement meets the statutory requirements. The dismissal must be at the employer's initiative, there must be no urgent reason for dismissal, and the notional notice period must correspond to the total length of employment. That period is longer when you have had multiple contracts. If this is not correctly reflected in the settlement agreement, the UWV may temporarily refuse or delay unemployment benefit.
What is successive employment and why is it relevant to my settlement agreement?
Successive employment applies when you performed comparable work first for another employer — for example a temp agency or payroll company — and were subsequently taken on directly. That earlier period can then count towards the calculation of your redundancy payment and notice period, provided the break was no longer than six months.
With multiple fixed-term contracts, might I already be entitled to a permanent contract?
Possibly. If you have had more than three successive fixed-term contracts, or have worked for the same employer on fixed-term contracts for more than three years, the chain rule (Section 7:668a of the Dutch Civil Code) may already have given rise to a permanent contract. This puts you in a stronger position when negotiating a settlement agreement. Always have this checked before you sign.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
