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Settlement agreement with multiple employment contracts

Do you have multiple employment contracts and have you been offered a settlement agreement? Read below for what to look out for when you have multiple employment contracts.

Have you had a succession of multiple 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 payment, and your entitlement to unemployment benefit (WW). In this article you can read what to look out for.

What the chain clause means for your settlement agreement

If you have had multiple fixed-term contracts with the same employer, the first question is: do those contracts form a single legal chain? This is governed by the chain clause (Article 7:668a of the Dutch Civil Code). Since 1 January 2020, a fixed-term contract automatically converts into a permanent contract if you have been given more than three consecutive fixed-term contracts, or if you have had multiple fixed-term contracts with the same employer for more than three years. For this purpose, 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 resulted in a permanent contract but your employer disregarded this, you are in a stronger negotiating position regarding the settlement agreement than you may realise. It is always advisable to have this assessed before you sign anything.

How earlier contracts count towards the transition payment

A settlement agreement will typically include a transition payment. The amount depends on your monthly salary and the total length of your employment. A misconception that employers sometimes apply 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 follow one another with a gap of no more than six months count together as a single continuous period of employment. The gaps themselves do not count towards the calculation. In practice this means: if you have had three one-year contracts each separated by four months, your length of service is three years, not one year. The statutory accrual rate is one third of a monthly salary for each full year of service. In 2026 the maximum transition payment is €102,000 gross, or one gross annual salary if that is higher.

Successive employer status and what it changes

Sometimes you have not only had multiple contracts with a single employer, but have, for example, first worked through a staffing agency or payroll company and subsequently been employed directly. In that case there may be successive employer status. This means that the period with the previous employer can also count towards your transition payment and notice period, provided you continued to perform 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 significantly affect your payment.

Unemployment benefit (WW) rights with a settlement agreement involving multiple contracts

In order to qualify for unemployment benefit (WW) after signing a settlement agreement, the agreement must meet a number of conditions. The initiative for the dismissal must lie with the employer, there must be no urgent cause, and the notice period must have been correctly observed or compensated. Where there is a chain of contracts, 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.

If the notice period is incorrect, the UWV may temporarily refuse or defer the unemployment benefit (WW). That is something you absolutely want to avoid.

Practical points to consider when you receive a settlement agreement

Have you received a settlement agreement while you have had multiple contracts? If so, bear the following in mind:

• 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 of contracts should already have resulted in a permanent contract. If so, your negotiating position is stronger.
• Consider whether there is successive employment (opvolgend werkgeverschap), particularly if you were ever engaged through a temporary staffing or payroll arrangement.
• Check the notional notice period: it must correspond to your total length of service, not to the shortest contract.
• Make sure the settlement agreement contains the correct wording to protect your entitlement to unemployment benefit (WW), including reference to the employer's initiative and the absence of an urgent reason for dismissal.
• Use the fourteen-day cooling-off period after signing if something turns out to be incorrect.

When a gap breaks the chain

A gap of more than six months breaks the chain of contracts. This means that earlier contracts no longer count towards your length of service and a new calculation begins. If you were ever absent from the same employer for an extended period, it is therefore a question of which contracts are still relevant to your settlement agreement. This is not always clear-cut and depends on the exact dates, the length of the gap, and sometimes also collective agreement (cao) provisions that provide for different time limits.

It is therefore advisable to draw up a timeline of all your employment periods and have it assessed by an employment law specialist before you sign a settlement agreement.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we know the local labour market and we guide employees in Eindhoven and the Brabant region through precisely these kinds of complex situations. A settlement agreement with multiple contracts in the background requires a tailored approach: which contracts count, is the payment correct, and will your entitlement to unemployment benefit (WW) be safeguarded? We set that out clearly for you, without legal jargon. Contact us without obligation — we would be happy to look at your situation together.

Frequently asked questions

Do all my previous fixed-term contracts count towards the transition payment in my settlement agreement?

That depends on the gaps between them. Contracts that follow one another with a maximum of six months in between together form a single chain and count jointly 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 only uses the most recent contract as the basis for the transition payment in the settlement agreement?

In that case, the calculation is probably 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 the calculation breakdown and have it checked. If the amount is incorrect, you can negotiate before signing.

Can I simply claim unemployment benefit (WW) after a settlement agreement involving multiple contracts?

Yes, provided the settlement agreement meets the statutory requirements. The dismissal must have been initiated by the employer, there must be no urgent reason for dismissal, and the notional notice period must correspond to the total duration of the employment relationship. That period is longer if you have had multiple contracts. If this is not correctly reflected in the settlement agreement, the UWV may temporarily refuse or delay your unemployment benefit (WW).

What is successive employment and why is it relevant to my settlement agreement?

Successive employment arises when you performed comparable work first for another employer — for example, a staffing agency or payroll company — and subsequently entered into employment directly. That earlier period may then count towards the calculation of your transition payment and notice period, provided the interruption 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 consecutive fixed-term contracts, or have worked for the same employer on fixed-term contracts for more than three years, the chain provision (Section 7:668a of the Dutch Civil Code) may already have resulted in a permanent contract. This gives you 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 be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.