| Topic | Non-AOW-entitled employee | AOW-entitled employee |
| Incapacity for work | Continued pay: 104-week continued pay obligation for the employer (Art. 7:629(1) DCC). Reintegration: employer and employee have reintegration obligations under track 1 (own employer) and track 2 (Art. 7:658a (1) and (3) DCC). | Continued pay: six-week continued pay obligation from the moment the AOW age is reached, unless the total period of continued pay would exceed 104 weeks (Art. 7:629(2)(b) DCC). Reintegration: employer and employee have reintegration obligations, limited to track 1 (own employer) (Art. 7:658a (1) and (3) DCC). |
| ‘Ragetlie rule’ | If a permanent employment contract is followed, within a gap of no more than six months, by a fixed-term employment contract, that subsequent fixed-term contract can only be terminated by means of a valid notice of termination (Art. 7:667(4) DCC). | Not applicable (Art. 7:667(4) DCC). |
| Successive contracts rule (chain provision) | The chain provision stipulates that fixed-term contracts are automatically converted into a permanent contract if an employee has had more than three consecutive contracts, or if the total contract duration exceeds 36 months (3 years). Gaps of no more than 6 months count towards the chain (Art. 7:668a (1) DCC). | The chain provision has been extended for AOW-entitled employees to six consecutive fixed-term contracts, or if the total contract duration exceeds 48 months (4 years). Gaps of no more than 6 months count towards the chain (Art. 7:668a (12) DCC). |
| Termination of the employment contract | Termination by the employer generally requires reasonable ground under Art. 7:669(3) DCC, and notice must be given after the employer has obtained a dismissal permit from the UWV or the employment contract has been dissolved by the subdistrict court. | The employer may give notice once on the grounds of the employee reaching the AOW entitlement age (Art. 7:669(4) DCC). |
| Notice period | The statutory notice period for the employee is one month (Art. 7:672(4) DCC); for the employer, the notice period depends on the duration of the employment contract (Art. 7:672(2) DCC). | For both the employee and the employer, the statutory notice period is one month (Art. 7:672(3) and (4) DCC). |
| Transition allowance | Employee is entitled to a transition payment (Art. 7:673(1) DCC). | Employee is not entitled to a transition payment (Art. 7:673(7)(b) DCC). |
| Pension scheme, insurance and social security contributions | Employers must pay contributions for, among others, unemployment insurance (WW), sickness benefits (ZW), incapacity for work (WIA/WAO), etc. Employee is normally covered under employee insurance schemes. | Employers no longer pay social security contributions. The employee is no longer insured for unemployment (WW) or incapacity for work. The employee does pay wage tax themselves, but this is not withheld by the employer. |
| Flexible Working Act (Wet flexibel werken) | Applicable (Art. 1 Wfw). | Not applicable (Art. 1a Wfw). |
| Wages | Entitled to minimum wage (Art. 7 Minimum Wage and Minimum Holiday Allowance Act). | Entitled to minimum wage (Art. 7 Minimum Wage and Minimum Holiday Allowance Act). Additional income has no effect on the AOW benefit. |
| Holiday allowance | Entitled to holiday allowance (Art. 15 Minimum Wage and Minimum Holiday Allowance Act). | Entitled to holiday allowance (Art. 15 Minimum Wage and Minimum Holiday Allowance Act). |
