Notice period in the hospitality CAO

What is a notice period?

A notice period is the time that starts from the first day of the calendar month following the day on which the employment contract was terminated, up until the last day on which the employment officially ends. In other words, for employees: if you resign, you usually have to continue working for a certain time before you can actually leave. Notice periods are laid down in law, but they can deviate from the statutory notice periods in a collective labour agreement (CAO) or employment contract. The purpose of the notice period is to give both employer and employee time to prepare for the end of the employment (for example, to find a replacement or start a new job). In the hospitality sector, the general legal rules for notice periods apply in most cases, with a few specific additions from the hospitality CAO.

Notice period for employees in hospitality

For employees in hospitality (hotel, restaurant, café, etc.), the standard statutory notice period applies in most cases. This means that if you, as an employee, resign (terminate your employment contract), you generally have to observe a notice period of one full calendar month. Regardless of the date of the month on which you resign, this counts as a resignation effective at the end of the calendar month, after which that one-month notice period begins. For example: if you hand in your resignation on 24 July, then the whole month of August counts as the notice period and your employment ends on 1 September.

Some points to be aware of for employees:

Deviating notice period in your contract: It may be that your employment contract states a longer notice period for you as an employee than that one month. In that case, you must observe that longer period. Note: if such a longer (deviating) notice period has been agreed for the employee, then by law the employer must observe double that notice period. These deviations must be recorded in writing in your employment contract; if nothing has been agreed, the statutory notice period of one month automatically applies to you as an employee.

Fixed-term contract: If you have a fixed-term contract with an end date, you generally cannot terminate it before that end date unless there is a clause allowing early termination in your contract. If such a clause is not included in your contract, you are bound to the agreements in the contract until the agreed end date. Terminating without an early termination clause is only allowed during the probation period (see further below) or with your employer’s consent. In practice, this prohibition on early termination often leads to an unworkable situation if you really want to leave. That is why, in such cases, a solution is often sought in consultation with the employer. For example, agreeing on an end date together that works for both parties. Tip: always record such agreements in writing.

No notice period at the end of a contract: If your fixed-term employment contract is about to end, it ends automatically and there is no notice period for either the employee or the employer. For the employer, however, there is still an obligation to give notice (which will be explained later). If your employer offers a renewal but you decide not to continue, you only need to clearly state that you do not wish to extend.

On-call contract: In the hospitality CAO, there is a specific provision for on-call workers with a zero-hours contract or a minimum-hours (min-max) contract. If early termination is allowed, a notice period of only 24 hours applies to you as an employee. In other words, in that case you can resign with one day’s notice. If you are a seasonal worker under climate and nature contracts, a notice period of 4 days applies. (For comparison: without a CAO provision, or in many other sectors, the notice period for on-call contracts is generally 4 days, but the hospitality CAO offers a shorter period of 24 hours.)

Consequences of not observing the notice period: If you do not observe the notice period (for example, you leave earlier than allowed without permission), this can have consequences. In the most extreme case, the employer can hold you liable for damages equal to the salary for the period you should still have worked, the so-called fixed compensation. This means that an employer can try to claim this fixed compensation through the court if you leave early without respecting the notice period. It is therefore wise to always observe your notice period correctly or leave in consultation and record these agreements in writing.

Tip: also keep in mind that if you resign yourself, you are generally not entitled to unemployment benefits. So only resign if you already have another job or have thought carefully about the consequences. If in doubt, consult a trade union or legal adviser before submitting your resignation.

Notice period for employers in hospitality

For employers (hotel or restaurant owners/managers), notice periods also apply, but they cannot simply terminate an employment contract whenever they want; strict rules apply to this. In hospitality (and in the Netherlands in general), an employer must have a valid reason to terminate a contract and must request permission from the UWV or the subdistrict court. Notice periods for employers in hospitality depend on the length of the employment:

  • Employment shorter than 5 years: notice period of 1 month.

  • 5 to 10 years in service: notice period of 2 months.

  • 10 to 15 years in service: notice period of 3 months.

  • 15 years or longer in service: notice period of 4 months.

As with employees, it is possible to agree on deviating notice periods in the contract. However, an employer may not make their own notice period shorter than mentioned above, but they may make it longer (for example in some top-level positions). If the employment contract states that the employee has a longer notice period than the statutory one-month period, then the employer must observe double that period, as mentioned earlier. Both deviations must be included in the contract; otherwise the standard periods apply.

Specific situations for employers:

Fixed-term contract: In the case of a fixed-term contract that ends automatically, there is usually no notice period. However, the employer must indicate in writing at least one month before the end whether the contract will be extended (the so-called notice obligation). This obligation only applies to contracts of six months or longer. If the employer does not do this or does it too late, they owe compensation: one month’s salary if there is no notice at all, or part of that amount if notice is given too late. The notice obligation is separate from the notice period, but it is important to keep in mind.

Early termination clause in a fixed-term contract: If a fixed-term contract states that early termination is possible, the employee may do so with one month’s notice (or 24 hours for an on-call contract). However, the employer may not unilaterally terminate the contract, even with such a clause. Only through mutual consent (termination agreement) or a dismissal procedure (UWV/court) with a valid reason can the contract be terminated early. In the case of termination at the employer’s initiative, the statutory or longer agreed notice period is usually observed.

Dismissal during probation period: If the employee is still in the probation period, both the employee and the employer may terminate the contract immediately, without a notice period.

Summary dismissal: If there is an urgent reason (for example theft, fraud or violence), the employer can proceed with summary dismissal. This means immediate termination of the employment, without observing any notice period (the termination takes effect immediately). Note: the reason must be serious enough (urgent reason) and the employer must communicate that reason immediately (without delay). No prior permission from the UWV or the court is required for summary dismissal. The employee then immediately loses the right to salary and the contract ends instantly. This is an extreme measure that is only allowed in serious situations and must hold up legally.

Conclusion

The rules around notice periods in hospitality do not differ much from the general statutory rules, but it is important to know the details. Especially if you are planning to resign from your current job to start a new opportunity. For you as an employee, a notice period of one month usually applies (unless otherwise agreed), while for the employer the period increases the longer you have been in service. If you have a fixed-term contract, check whether it includes a clause for early termination if you want to leave earlier, and do not forget that your employer must inform you in time about whether your contract will be extended. Special contract types such as zero-hours contracts have their own rules, such as the 24-hour notice period in the hospitality CAO.

Are you about to take a new step in your career and have you perhaps already found a great new job through Hotelprofessionals? Make sure you respect your notice period properly. That way, you leave your old employer professionally and you can start your next opportunity with peace of mind. Good luck with your next step in the hospitality industry!

This article has been reviewed by:

Sander (A.J.C.) Theunissen
Employment Lawyer (Counsel) - CLINT | Littler

Sander (A.J.C.) Theunissen has over fifteen years of experience and specializes in labor law and works council law. He has gained experience in labor law for the hospitality industry, among other areas.

Frequently Asked Questions – Notice period in the hospitality sector

1. What is the standard notice period for employees in the hospitality industry?

In most cases, a full calendar month notice period applies. The notice period always starts on the first day of the following month, regardless of the actual date you give notice.

2. Is there a notice period for a fixed-term contract?

A fixed-term contract ends automatically on the agreed end date, without any notice period. Terminating earlier is only possible if a termination clause is included in the contract or if an agreement is made with the employer.

3. What is the notice period for on-call employees (zero-hour or Min-Max contracts) in hospitality?

Under the hospitality collective labour agreement, a 24-hour notice period applies, provided that mid-term termination is allowed. For seasonal workers in the “climate & nature” category, the notice period is 4 days.

4. What happens if I do not respect my notice period?

If you leave earlier without permission, the employer may claim a fixed compensation equal to the wages for the period you were still supposed to work.

5. Am I entitled to unemployment benefits (WW) if I resign myself?

No, if you resign voluntarily, you are not entitled to unemployment benefits (WW). Only in exceptional cases or with a valid reason may the UWV decide otherwise.