It is normal in the Netherlands for a company to initially offer a temporary contract of three, six, twelve or more months. After this period the company may offer another temporary contract or even a permanent contract. It is automatically renewed for the same duration if no measures are taken to contradict this.
A company may only offer an employee up to three temporary contracts within a three-year period. If three temporary contracts have been completed within three years, then the next contract offered must be a permanent contract.
Most companies have a one to two month notice period regarding terminating a contract, starting at the end of the month. An employee with a temporary contract in which no notice period is stated has no notice period and must work until the end of the contract, unless it can be ended by mutual agreement.
If the application process at a company has been successful there are different ways that employment can be entered into via an agency.
Direct placement: The new recruit starts working at the company directly either under a temporary or permanent contract. The new recruit will be paid directly through the company payroll and company policies apply.
Project work: The official employer is the recruitment agency and a contract is entered into for a specific period of time, with a definite end date. The agency pays the salary and travel expenses (if applicable) and is responsible for payments regarding illness, vacation and social benefits. The notice period depends on what is stipulated in the contract.
Temporary contract (uitzenden): Temporary contracts are very common, as they offer both employer and employee some flexibility. The recruitment agency is the official employer and is therefore responsible for the payment of salaries, travel/overtime (if applicable) and other social benefits. The employee is only paid for the hours they work.
Often a company will initially employ someone on a temporary contract before taking the person into direct employ. This provides a longer trial period for both parties as a temporary worker can leave at any time and the company can end the contract at any time up to 12 weeks. After 12 weeks, the notice period is longer for the company.