The chain rule explained: when do you get a permanent contract?

Many employees first work with temporary contracts. The chain provision determines when a series of temporary contracts automatically transitions into a permanent contract. This provides employees with more certainty and obliges employers to make clear choices. In this article, we explain how the chain provision works, which exceptions exist, and what this means for you as an employee or employer.

What does the chain provision entail?

The chain provision ensures that a fixed-term employment contract is converted into a permanent employment contract over time. This happens in two cases:

• If the total duration of consecutive temporary contracts is longer than 24 months (two years).

• If more than three temporary contracts are concluded consecutively.

Important: if there is a period of more than six months between the contracts, the chain is broken. The count then starts again.

Real-world example

Suppose an employee receives three contracts of eight months each. Together these are 24 months. As soon as a fourth contract follows, it automatically becomes a permanent contract.

Successor employer status

The chain rule also applies in the case of successor employer status.

This means that when an employee performs almost the same work for a new employer as for the previous employer, the period with the first employer counts.

Example: a temporary agency worker who first works through a temp agency and then is hired directly by the client. The temporary agency period then counts towards the chain.

Exceptions to the chain regulation

1. There are situations in which the chain regulation does not apply or where different rules are possible:
   Long-term contract with short extension

2. If an employment contract lasts longer than 24 months and is then extended with a contract of up to three months, the chain regulation does not take effect.
   Deviations in the collective labor agreement

   • In a collective labor agreement (cao), it can be agreed that:the maximum duration of the chain is extended to 48 months

   • ;the maximum number of contracts is increased to 6

3. .
   Temporary employment sectorFor temporary agency workers, the chain regulation only applies after they have 26 weeks have worked. This period can be extended in the collective labor agreement to a maximum of 78 weeks

.

Why is the chain regulation important?

For employees, this means protection: after a certain period they can be entitled to a permanent contract. For employers, it provides clarity and prevents temporary contracts from being extended indefinitely.

Legal advice on the chain regulation

The chain regulation seems straightforward, but in practice it often raises questions and conflicts. For example, in cases of successive employers, or when an employer and employee disagree about the duration of the employment contract.

• Our employment law attorneys help you with:

• checking whether a contract has been automatically converted into a permanent contract;

• calculating the correct term and the number of contracts;

resolving conflicts with employers or employees.

Conclusion