Continuing to Work After Retirement: What’s Allowed, and What Should You Keep in Mind?
More and more often, employees continue to work even after reaching retirement age. Sometimes this is because the employer wants to continue benefiting from their knowledge and experience, and sometimes it’s at the employee’s own request. But is that allowed? And what are the legal rules?
What is a retirement termination clause?
A retirement termination clause is a provision in an employment contract that stipulates that the contract automatically terminates upon reaching the state pension age. This used to be standard practice, but that has changed since the Work and Security Act (WWZ) took effect in 2015.
Employers are now permitted to terminate an employee’s contract “without cost” once the employee reaches the state pension age, provided the employee was already employed prior to that date. “Without cost” means: without approval from the UWV or a court, without the employee’s consent, and without a transition payment.
Have you included such a retirement termination clause in the agreement? If so, the contract ends automatically. If you want to continue working together afterward, a new employment relationship begins, and the “no-cost” termination option no longer applies.
What if you sign a new contract after that?
Once the original contract has ended, you can simply sign a new one. Even though the option to cancel for free no longer applies at that point, that doesn’t automatically mean you’re locked into an indefinite contract.
Do you want to terminate that new contract? In that case, the usual rules apply: you need the employee’s consent, authorization from the UWV, or a court order to terminate the contract.
What about notice periods and sick leave?
The notice period after reaching the state pension age is shorter: one month. The prohibition on termination due to illness is also limited. Instead of two years, a protection period of 6 weeks applies. Previously, the period was 13 weeks.
What are the rules regarding the chain provision?
Normally, a permanent employment contract is granted after three temporary contracts within three years. For employees eligible for the AOW pension, this sequence has been extended: a permanent contract is established only after six contracts over four years. Only contracts entered into after reaching the AOW retirement age count toward this requirement.
Be careful with zero-hour and min/max contracts
Employees over the state pension age can no longer invoke the Flexible Work Act. This means they cannot require that their hours be reduced.
What does apply, however, is the so-called legal presumption. If someone has been working the same number of hours consistently for three months, he or she may assume that this work schedule is also legally binding. So, if you have someone working 20 hours a week on a zero-hour contract on a regular basis, the employee can still claim wages for those 20 hours.
The Balanced Labor Market Act (WAB)
Under the WAB, an employer must offer an on-call worker a contract after twelve months based on the average number of hours worked in the previous year. Additionally, a call to work must be made at least four days in advance. These rules also apply to employees who continue working past the state pension age.
Conclusion
Continuing to work after retirement is entirely possible and well regulated from a legal standpoint. Many previous obstacles, such as long-term continued pay during sick leave or the rapid establishment of permanent employment, have since been relaxed. Nevertheless, it remains important to establish the right agreements and to carefully monitor which rules apply to the new employment relationship.
This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight contracts and policies—with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn’s page.
Arbeidsadvocaat.nl is happy to help you if you have any questions about continuing to work after retirement. Please feel free to contact us .
April 2025