A project contract is a fixed-term employment contract<\/a> in which the end of the contract is not tied to a specific date, but to the completion of a specific project. The concept is clear: as soon as the project ends, the employment contract also ends by operation of law<\/a>. <\/p>\n\n But please note: for the agreement to be legally terminated, it is essential that the point at which the project ends can be objectively determined<\/em>. This means that it must be completely clear to both parties when the project is completed (determinable) and that this point in time must not depend on the will of the employer or client (objective). <\/p>\n\n Even with projects where the scope seems clear, legal uncertainties can still arise. Consider, for example, a project to paint the stairs in a new construction complex. What if the project is expanded to include additional units? Does that still fall under the same project, or is it a new project? If no clear agreements have been made regarding this, disputes will arise. And if there is any doubt about the end date, the employment contract does not automatically terminate. <\/p>\n\n Consequence: From a legal standpoint, the agreement becomes a contract for an indefinite term, with all the associated protections for the employee.<\/p>\n\n The confusion becomes even greater if the employee is not employed by the client directly, but is working temporarily for a third party through the employer. Many employers include a provision in the contract stating that the employment relationship ends as soon as the client completes the project. <\/p>\n\n However, this is not legally permitted under a project agreement. After all, in that case, the end of the project depends on the client and therefore cannot be objectively determined. Such an arrangement is then subject to the temporary employment provision of Article 7:691(2) of the Dutch Civil Code. <\/p>\n\n A temporary employment clause may only be used in genuine temporary employment contracts, and even then, there are limits: a maximum of 26 weeks worked (or 78 if the collective bargaining agreement permits it). Have you exceeded that limit? If so, the employment contract no longer ends automatically, and an employment relationship for an indefinite term begins. <\/p>\n\n If you still want to work under a project agreement, please note the following:<\/p>\n\n A project agreement can be a useful tool for temporary assignments, but only if you draft it in a legally watertight manner. If the end of the project isn\u2019t clearly defined or is made contingent on a client, then as an employer you run the risk that the employment contract won\u2019t end as intended and will imperceptibly turn into a permanent contract. <\/p>\n\n 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\u2014with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn\u2019s page<\/a>. <\/p>\n\nWhy Things Often Go Wrong<\/strong><\/h4>\n\n
Project Agreement or Temporary Employment Contract?<\/strong><\/h4>\n\n
Smart Tips for Employers<\/strong><\/h4>\n\n
\n
Conclusion<\/strong><\/h4>\n\n
\n\n![\"\"](\"https:\/\/arbeidsadvocaat.nl\/wp-content\/uploads\/2024\/10\/KF_6364_def-1024x683.jpg\")
<\/figure>\n\n