Continuing to work after retirement: what's allowed and what to watch out for?
Increasingly, employees continue to work beyond retirement age. Sometimes because the employer would like to continue using their knowledge and experience, sometimes at the request of the employee himself. But is that allowed? And what are the legal rules of the game?
What is a pension severance clause?
A retirement termination clause is a provision in the employment contract that stipulates that the contract automatically ends upon reaching the state pension age. This used to be standard, but since the Work and Security Act (WWZ) in 2015, it has changed.
Employers are now allowed to terminate once 'free of charge' on or after reaching the state pension age, provided the employee was employed before that time. 'Free of charge' means: without UWV or court approval, without the employee's consent and without transition compensation.
Did you include such a retirement termination clause in the contract? Then the contract ends automatically. Do you want to continue with each other again afterwards? Then a new employment contract arises, in which case the "free" termination option expires.
What if you sign a new contract after that?
Once the original contract has ended, you can simply sign a new contract. Even though the free termination option no longer applies, this does not immediately mean that you are stuck with an open-ended contract.
Do you want to terminate that new contract? Then the usual rules apply: you need the employee's consent, permission from the UWV or a court dissolution.
What about notice periods and illness?
The notice period after reaching the state pension age is shorter: one month. The ban on notice during illness is also limited. Instead of two years, a protection period of 6 weeks applies. Previously, a term of 13 weeks applied.
What applies to the chain rule?
Normally, permanent employment occurs after three temporary contracts in three years. For employees entitled to AOW, this chain has been extended: only after six contracts in four years does a permanent contract arise. Only contracts entered into after reaching the state pension age count.
Be careful with zero-hours and min/max contracts
Employees over the state pension age can no longer invoke the Flexible Work Act. So they cannot force them to work fewer hours.
What does apply is the so-called legal presumption. After three months, does someone keep working the same number of hours? Then he or she may assume that this scope of work also applies legally. So do you have someone structurally work 20 hours a week on a zero-hours contract? Then the employee can still claim wages for those 20 hours.
The Balanced Labor Market Act (WAB).
Under the WAB, after 12 months an employer must offer an on-call worker a contract for the average number of hours worked in the previous year. Also, a call must be made at least four days in advance. These rules also apply to employees who continue working after their AOW age.
Conclusion
Continuing to work after retirement is quite possible and legally well regulated. Many former bottlenecks, such as prolonged salary continuation during illness or the rapid onset of permanent employment, have now been eased. Nevertheless, it is still important to make the right arrangements, and to keep a close eye on what rules apply to the new employment.
This blog was written by mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs and employees on a daily basis with a variety of employment law issues. From dismissal cases to drafting watertight contracts and regulations - with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about continuing to work after retirement. Please feel free to contact us .
April 2025
