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Ending the engagement of an independent contractor in the Netherlands is usually straightforward for the client: under Dutch law, the client can terminate a contract of assignment at any time (Article 7:408(1) Dutch Civil Code). Two questions decide whether it stays that way: is the contractor really not an employee, and what do the contract and the law say about notice and fees?
This page is for companies, often foreign companies, that work with Dutch freelancers, consultants, developers, interim managers or other self-employed professionals (in Dutch: zzp’ers) and want to end that engagement. It explains how to check the qualification of the relationship, what you owe after termination, when different rules apply to building and installation work, and how to end the engagement without a dispute. The general rules on terminating a contract of assignment are set out on our main page on terminating a contract of assignment under Dutch law.
Is your independent contractor really not an employee?
Check this first. If the relationship meets the statutory definition of an employment contract, Dutch dismissal law applies and you cannot simply terminate. What the parties called the contract, or intended, does not decide the question (HR 24 March 2023, ECLI:NL:HR:2023:443, paras. 3.2.3-3.2.4).
An employment contract is a contract under which one party, the employee, undertakes to perform work in the service of the other party, the employer, for pay, for a certain time (Article 7:610(1)). Whether a contract meets that definition depends on all the circumstances together. The Hoge Raad lists, among others: the nature and duration of the work, how the work and working hours are determined, how embedded the work and the worker are in your organisation, whether the work must be done personally, how the pay is set and paid, and whether the worker bears commercial risk and acts as an entrepreneur, for example by working for several clients (para. 3.2.5).
Dutch law also contains a presumption: a person who, for three consecutive months, works for another for pay, weekly or for at least twenty hours a month, is presumed to do so under an employment contract (Article 7:610a). The client can rebut that presumption.
If the relationship is in fact an employment contract, the employer can only terminate with a reasonable ground, if redeployment in another suitable position is not possible or not reasonable, and, in principle, only with the employee’s written consent, with permission from the Employee Insurance Agency (UWV) or through the cantonal court (Articles 7:669(1), 7:671(1) and 7:671b). Have the qualification checked before you end a long-running engagement with one person who works mainly for you.
Can you terminate an independent contractor at any time?
Yes, unless your contract says otherwise. The client can terminate a contract of assignment at any time, also if it was agreed for a fixed term or a project, and does not need to give reasons (Article 7:408(1) Dutch Civil Code).
A contract of assignment is the contract under which a contractor performs work for a client other than under an employment contract, where the work is not the creation of a physical work, the storage of goods, publishing or transport (Article 7:400(1)). Most contracts with freelancers, consultants and agencies fall under it. See our page on the agreement for services in the Netherlands.
Between businesses, the rule in Article 7:408(1) is default law (Article 7:400(2)). The contract can therefore exclude early termination or attach a notice period to it. Only for a client who is a natural person not acting in the course of a profession or business can the right to terminate not be limited (Article 7:413(2)). Read your contract before you act: a clause excluding early termination binds a business client.
Do you have to observe a notice period?
If your contract contains a notice period, observe it. If it does not, Article 7:408(1) itself requires no notice period, but reasonableness and fairness can still affect the consequences of an abrupt termination (Article 6:248(1) Dutch Civil Code).
Suppose the contract says “termination with one month’s notice, at the end of a calendar month” and you give notice on 15 October. The contract then ends on 30 November, and you owe the agreed fee for the work the contractor performs until then. If you stop the engagement on 15 October anyway, the contractor can claim the fee or damages for the notice period, minus the costs it saves.
Without a contractual period, there is no fixed number of weeks. A contractor who turned down other work or made investments specifically for your assignment has a stronger case for a transition period or compensation than one who was engaged for a few weeks. Agree on a notice period in the contract to avoid that discussion.
What do you owe the contractor after termination?
You pay for the work performed until the contract ends, plus expenses not included in the fee. If the fee depends on completing the project or on the agreed term, the contractor is entitled to a reasonable part of it (Article 7:411(1) Dutch Civil Code).
That reasonable part takes into account, among other things, the work already done, the benefit you have from it and the ground on which the contract ended. The contractor is entitled to the full fee only if the end of the contract is attributable to you and paying the full fee is reasonable in all the circumstances; savings resulting from the early end are then deducted (Article 7:411(2)). Expenses connected with the assignment must be reimbursed as far as they are not included in the fee (Article 7:406(1)).
A private individual who gave an assignment other than in the course of a profession or business owes no damages for terminating, although expenses must still be reimbursed (Article 7:408(3)); that rule cannot be set aside (Article 7:413(1)). For business clients there is no such exclusion. Whether a business client owes damages on top of the fee depends on the contract and the circumstances.
Does Article 7:764 apply when the contractor builds or installs something?
Yes. If the contractor undertakes to create and deliver a physical work for a price, such as a building, a machine or an installation, the contract is a contract for work (aanneming van werk), not a contract of assignment (Article 7:750(1) Dutch Civil Code).
The client can then also terminate at any time, wholly or partly, but must pay the price for the whole work, reduced by the savings the contractor makes because of the termination, against delivery of the work already completed (Article 7:764(1)-(2)). If the price depended on the actual costs, it is calculated on the costs incurred, the work done and the profit the contractor would have made on the whole work. That is usually more expensive than terminating a contract of assignment.
Advice, consultancy, development work billed by the hour or design work on paper are usually services. When in doubt, look at what the contract requires the contractor to deliver and how the price is set. Our page on terminating a construction contract under Dutch law covers building contracts in more detail.
How do you end the engagement correctly?
Check the qualification and the contract, give a clear written notice, and arrange the handover of work, files and rights before the last day. Most disputes start with an unclear end date or an unpaid final invoice.
- Check whether the relationship could qualify as an employment contract (see above). If in doubt, take advice before you act.
- Read the contract: notice period, exclusion of early termination, fee structure, form and address for notices, intellectual property and confidentiality.
- Give notice in writing and keep proof of receipt. The law allows any form unless the contract requires one, and the notice takes effect when it reaches the contractor (Article 3:37(1) and (3) Dutch Civil Code).
- State the end date, the work to be completed or handed over, and how the final invoice will be settled.
- Agree in writing which results, files and rights you receive. Copyright in a contractor’s work generally stays with the maker unless it has been transferred; our main page on terminating a contract of assignment explains the rules.
- Pay undisputed invoices for work performed. Withholding payment for work already done invites a separate claim.
What if the contractor disputes the termination?
A notice under Article 7:408(1) does not need the contractor’s consent. A dispute will therefore be about money: the fee for the notice period, a reasonable part of a fixed price, expenses or damages.
Ask the contractor to specify the claim and the basis for it. Compare it with the contract and with Articles 7:406 and 7:411. If the relationship lasted long, or the contractor worked mainly for you, also consider whether the contractor could argue that it was in fact an employee, because that changes the rules entirely. A written settlement that records the end date, the final payment and the mutual release of claims usually ends the matter.
Can the contractor end the engagement?
A contractor acting in the course of a profession or business can, save for serious reasons, only terminate if the contract is for an indefinite period and does not end on completion (Article 7:408(2) Dutch Civil Code).
A freelancer engaged for a fixed term or a defined project is therefore in principle bound until the end. The law gives one example of a serious reason: a contractor who, on reasonable grounds, is not prepared to follow the client’s instructions may terminate if the client insists on them (Article 7:402(2)). If the client does not pay, the contractor can suspend its own work (Article 6:262(1)) or rescind the contract for breach. Between businesses, the contract can regulate this differently (Article 7:400(2)).
Frequently asked questions about terminating an independent contractor in the Netherlands
Can you fire an independent contractor in the Netherlands?
If it is a genuine contract of assignment, the client can terminate at any time (Article 7:408(1) Dutch Civil Code), observing any agreed notice period and paying for the work done. If the relationship is in fact an employment contract, Dutch dismissal rules apply instead.
What is freelance misclassification under Dutch law?
It means a relationship called a freelance or service contract is in fact an employment contract. That depends on all the circumstances, not on the label the parties chose (HR 24 March 2023, ECLI:NL:HR:2023:443). The worker then has the protection of an employee, including dismissal protection.
Does a contractor have more rights after working for me for two years?
Not under the rules for contracts of assignment as such. Duration does matter for the question whether the relationship is in fact an employment contract, and for what reasonableness and fairness require when you end a long engagement abruptly.
What does Article 7:764 of the Dutch Civil Code say?
Under a contract for work, the client can terminate at any time, wholly or partly, but must pay the price for the whole work minus the contractor’s savings, against delivery of the work completed (Article 7:764 Dutch Civil Code).
Do I have to give a reason for terminating a freelancer?
No. Article 7:408(1) Dutch Civil Code does not require a reason, unless your contract does. Giving a short, factual reason can still help to avoid a dispute.
Primary sources
Dutch statutes are only officially available in Dutch, on wetten.overheid.nl. Judgments can be found on rechtspraak.nl by their ECLI number.
- Dutch Civil Code (Burgerlijk Wetboek) Book 3: Article 3:37
- Dutch Civil Code Book 6: Article 6:248 and Article 6:262
- Dutch Civil Code Book 7: Article 7:400, Article 7:402, Article 7:406, Article 7:408, Article 7:411, Article 7:413, Article 7:610, Article 7:610a, Article 7:669, Article 7:671, Article 7:671b, Article 7:750 and Article 7:764
- Hoge Raad 24 March 2023, ECLI:NL:HR:2023:443 (Deliveroo)
Need advice on ending an engagement with a Dutch contractor?
A Dutch lawyer can check whether the relationship is a genuine contract of assignment, calculate what you owe under the contract and Article 7:411, and draft the notice and the final settlement. For the contract itself, see our page on the freelancer contract under Dutch law, or read more about our work as a contract lawyer in the Netherlands for international companies.
