Fixed contract: lure or show of confidence

Labor market tightness has been the topic of conversation in the Netherlands over the past year. There are currently 121 vacancies for every 100 unemployed people in the Netherlands. This is less tense than last year, but does not mean there is breathing room. To bring employees in, all sorts of things are being tried. Even offering a permanent contract is being thrown into the fray again. Yet strange that this can make all the difference. Every organization should offer employees a permanent contract. It expresses trust and is also more advantageous for the employer.

4 reasons for a permanent contract

Dismissal

Something often mentioned as a disadvantage is the inability to simply terminate the employment contract. This applies to both permanent and temporary contracts. You need good reasons for this and you must build up a file to be able to prove that you have done everything possible to retain the employee. A good reason can be: a bad economic or financial position of the organization, poor performance or lapsing of the position. These are possible reasons why you would let someone with a temporary contract go or not renew the contract.

Improved working relationship

In addition, offering a permanent contract has advantages on the working relationship between employer and employee. With a temporary contract, employer and employee often avoid this conversation because they are not "obligated" to continue with each other; when the contract expires, you are no longer obligated to anything. With a permanent contract, the employer offers a certain form of security and trust. This creates additional commitment on the part of the employee. It also gives both parties the goal of working together in good condition and continuing the conversation when the relationship comes under pressure.

Training

If an employee is a permanent employee and training may be required for the position, since Aug. 1, 2022, you may no longer prohibit this and are required to facilitate it. For an employer, this may sound like "a lot of extra expense," but at the bottom line, the organization also benefits. After all, an employee is better able to perform the job or can perform additional or more difficult tasks. Moreover, providing continuing education, offering studies, courses or workshops throughout employment, is an important aspect in keeping an employee sustainably employable. With this, you can prevent possible absenteeism in the long run since investing in employees usually creates more bonding and job happiness.

Ancillary activities

Also, you may not prohibit outside activities of an employee on a permanent contract. This has changed in the change in the law on Aug. 1, 2022. Only with a good reason, you as an employer may still waive ancillary activities such as when the health and safety of an employee comes into the clause, protection of confidential business information or exceeding the working hours law. Include this well in the contract in advance and make clear agreements about this with the employee. Allowing side activities can also provide an outlet or good variety for an employee. It can give them extra energy or a sense of purpose within the community. You will also see this extra energy back in the workplace.

Your employees permanently employable with a permanent contract

A permanent contract is worth a lot to an employee, especially when uncertain times are coming with higher costs and reduced purchasing power. Offer your employees that security.

Want to know more about keeping your employees engaged and captivated to keep them sustainably employable? Visit our website for more information or contact us without obligation.