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Severance pay if temporary contract not renewed?

Introduction

When a temporary contract is not renewed, it does not automatically mean the end of the employment discussion. In some cases, there may still be a dismissal, with entitlement to severance pay, especially if the non-renewal stems from seriously culpable behavior by the employer. A recent ruling underscores how important it is for employers to handle reports of undesirable behavior carefully.

What happened in this case?

The case revolved around an employee of a playground organization. She reported that she had received sexually explicit WhatsApp messages from a board member, including an image of an explicit nature. After this report, she called in sick. The organization's response was anything but professional. In an email, another board member declared her sick report invalid and suggested that her absence would disrupt spring break for the children.

Moreover, the board member's behavior was downplayed and described as an "awkward flirtation attempt." This reaction showed little understanding of the seriousness of the situation and reinforced the employee's sense of insecurity.

Right to severance pay

Although the employee had a temporary contract, and this contract was not renewed, the judge ruled that there was nevertheless a form of termination that required compensation. The judge qualified the board's actions as seriously culpable. As a result, he awarded the employee fair compensation of almost €10,000, equivalent to six months' salary. This amount was considerably higher than regular transitional compensation.

The court's decision underscores that temporary employment may also be entitled to severance pay, provided the circumstances warrant it.

What does this mean for employers and employees?

Employers are responsible for ensuring a safe working environment. That means signals of sexually transgressive behavior must be taken seriously and followed up adequately. In this case, the employer failed to do so and even chose to antagonize and downplay it. This led to a legal assessment in which the non-renewal of the contract was seen as unlawful.

For employees, this means that they are not powerless at the end of a temporary contract if there is unlawful or harassing behavior by the employer. The court can intervene and award additional compensation if the employer has acted culpably.

Conclusion

Termination of a temporary contract does not preclude severance pay. Especially when the non-renewal is related to undesirable behavior and the employer has not acted with care, fair compensation may be awarded. Employers are wise to always take reports of transgressive behavior seriously and take appropriate action. Failure to do so can be costly.

arbeidsadvocaat.nl

Temporary contract not extended? You may be entitled to fair compensation if your employer is seriously culpable. arbeidsadvocaat lawyer #lawyer #employment law #redundancy #rights

♬ original sound - Stijn Blom

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 dismissal (compensation). Please feel free to contact us . 

April 2025

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