On October 19, 2020, the Arnhem-Leeuwarden Court of Appeal ruled
on whether an employer had met its duty of notification and whether
it owed compensation in lieu of notifying the employee about his
contract extension. Under Dutch law, no later than one month before
a fixed-term employment contract is due to end, the employer must
inform the employee in writing whether or not the contract will be
extended. If the contract will be extended, the employer must state
the terms under which it wishes to extend it. This is referred to
as the notification obligation. If the employer fails
entirely to meet this obligation, then it will owe the employee
compensation equal to one month's salary, known as
the notification compensation.
