Many employment contracts or termination letters state that the contract ends “as of” a certain date. Sometimes the terms “on” or “effective” are also used. Many people think these terms all mean the same thing, but legally, there is an important linguistic difference between them. And that can have major consequences for, for example, the right to a transition allowance.
What do we mean by “as of” or “on” a date?
If a contract states that employment ends “effective April 1,” then March 31 is the last day of work. That’s clear. But what does it mean if it says “as of April 1”?
That turns out to be less clear. “As of April 1” can, in fact, be interpreted to mean that the employment relationship ends on March 31. But some people actually think that April 1 is the last day of work. That difference is crucial, because it determines when the expiration period begins.
A case before the Supreme Court: one day too late
In 2021, the Supreme Court had to rule on precisely this issue. An employer had terminated the contract “effective March 1, 2018.” The employee filed a petition for a transition allowance on May 30, 2018.
According to the judge, that was too late. Why? Because “as of March 1” was interpreted to mean that the employment contract ended on February 28. The statutory deadline for submitting a petition is three months after the last day of work. In this case, that deadline expired on May 28. The employee therefore submitted her petition two days too late and consequently lost her right to compensation.
Why is that due date so important?
Strict deadlines apply to many legal proceedings under labor law. Examples include:
- a request for a transition payment
- a request to overturn the termination
- Proceedings regarding a non-compete clause
These periods begin on the day after the last workday and end exactly three months later, on the same day of the month. If you’re even one day late, you lose your right. That’s why it’s so important to know exactly when an employment contract has 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,” this generally means that the employment relationship ends on February 28—unless the employer and employee have agreed otherwise, for example, in writing or through an established procedure.
In other words: if you don’t spell it out clearly, “as of March 1” will be interpreted as “the last workday is February 28.”
How can you prevent problems?
Always clearly state the last day of employment. Do not use vague terms such as “as of” or “effective,” but be specific. So, do not write: “The employment contract ends as of April 1,” but rather: “The employment contract ends on March 31.”
This will help you avoid confusion and legal problems if a dispute arises later regarding the validity of a petition or the start of a limitation period.
Conclusion
A single word can make the difference between a valid request and completely losing your right. “As of” or “on” a certain date may seem like a minor detail, but it has major consequences.
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 agreements 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 assist you if you have any questions about employment contracts. Please feel free to contact us .
August 2026