When Is A Contract For Services An Employment Contract In The Netherlands?

A recent case in the Netherlands assessed whether a contract for services constituted an employment contract under Dutch law. In this case, an employer and an employee entered into a contract for services for certain work. At some point, the employer terminated the contract. The employee objected and argued that the contract for services was in fact an employment contract. The employee did not want to return to work and accepted the termination. However, he did want compensation for the failure to comply with the notice period, as well as a transition payment and fair compensation.

The employer's defense was that no employment contract existed because the contract had not been entered into with the employee but with his close corporation. According to the employer, it was also clear that the parties had not wanted to enter into an employment contract and, therefore, the employee could not claim that the contract was actually an employment contract.