Many employment contracts or resignation letters state that the contract ends "as of" a certain date. Sometimes "on" or "effective from" is also used. Many people think it all boils down to the same thing, but legally there is an important linguistic difference in this. And that can have major implications for entitlement to severance pay, for example.
What do we mean by "by" or "on" a date?
If an agreement states that employment ends "effective April 1," then March 31 is the last working day. That's clear. But what does it mean when it says "effective April 1"?
This turns out to be less clear. Indeed, "as of April 1" can be interpreted to mean: employment ends March 31. But some people, on the contrary, think that April 1 is the last working day. That difference is crucial because it determines when the expiration period begins to run.
A case at the Supreme Court: one day late
The Supreme Court had to rule on exactly this issue in 2021. An employer had terminated the contract "effective March 1, 2018. The employee filed a petition for transfer compensation on May 30, 2018.
According to the judge, that was too late. Why? Because "as of March 1" was interpreted to mean: the employment contract ended on Feb. 28. The legal deadline to file a petition is three months after the last day of work. In this case, that deadline expired on May 28. So the employee filed her petition two days too late and thus lost her right to the compensation.
Why is that end date so important?
Strict deadlines apply to many legal proceedings in employment law. Consider:
- a request for severance pay
- an application to annul the dismissal
- litigation over a non-compete agreement
These terms begin on the day after the last working day and end exactly three months later, on the same day of the month. If you are one day late, you lose your right. This is why it is so important to know exactly when an employment contract ended.
What does the Supreme Court say about this?
The Supreme Court ruled that if a letter states that the employment contract ends "as of March 1," it basically means that employment ends on Feb. 28. Unless employer and employee have agreed something else, such as in writing or through a set procedure.
In other words, if you don't write it clearly, "as of March 1" will be interpreted as "last working day is Feb. 28.
How do you avoid problems?
Always write clearly what the last day of work is. Don't use vague terms like "as of" or "effective from," but be specific. So do not say, "The employment contract ends April 1," but rather, "The employment contract ends March 31."
This way you avoid confusion as well as legal problems if later discussions arise about the validity of a petition or the start of an expiration period.
Conclusion
A single word can make the difference between a valid request or losing your right entirely. 'By' or 'on' a certain date may seem like a detail, but it has major implications.
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 employment contracts. Please feel free to contact us .
April 2025
