Successive fixed-term contracts: rules and risks

You have a great employee on a fixed-term contract. It ends in two weeks. You want to extend it, because the work is still there and the collaboration is going well. Just quickly draw up a new contract and you're done. Right?

Not so fast. Belgian legislation is strict when it comes to successive fixed-term contracts. Get it wrong, and you suddenly have an employee on an open-ended contract. With all the consequences that entails.

In this article, you'll find out exactly how many successive contracts you're allowed to conclude, which exceptions exist, and how to avoid the pitfalls that could cost you thousands of euros.

What are successive fixed-term contracts?

Let's cover the basics. A fixed-term contract has a set end date. It stops automatically on that date, without notice. Handy for project work, seasonal peaks or a temporary replacement.

But as soon as you conclude a new fixed-term contract with the same employee once the first one ends, we're talking about successive fixed-term contracts. And strict rules apply to those.

The reason is that lawmakers want to prevent employers from stringing together an endless series of fixed-term contracts to sidestep the protection of a permanent contract. Fair enough, honestly. An employee who has already worked for you for two years deserves the security of an open-ended contract.

The basic rule: successive contracts are prohibited

This is where it gets legal. But not boring-legal, rather important-legal.

Article 10 of the Employment Contracts Act of 3 July 1978 sets out the principle: if you conclude several successive fixed-term contracts without an interruption attributable to the employee, then an open-ended contract is presumed to exist.

Read that sentence again. It's about a legal presumption. The law doesn't say it's prohibited. The law says it automatically becomes an open-ended contract. That's an important difference.

There are exceptions to this rule. Two, to be precise.

Exception 1: up to 4 contracts in 2 years

This is the exception most employers know. You may conclude a maximum of four successive fixed-term contracts, on condition that:

• Each contract has a minimum duration of three months
• The total duration of all contracts combined does not exceed two years

Say you hire someone on 1 January 2026 with a six-month contract. On 1 July you extend it by four months. On 1 November another four months. And on 1 March 2027 one last time by two months. Four contracts, total duration eighteen months. That's allowed.

But take that same scenario and add a fifth contract? Then the legal presumption applies and you automatically have an employee on an open-ended contract. From the very beginning, not from the fifth contract onwards.

Another common mistake: a two-month contract in between. Each contract must last at least three months. A contract of two months and three weeks? Too short. And then your whole construction collapses like a house of cards.

We see this regularly with employers we support. They think they're being flexible by offering short contracts, but they achieve precisely the opposite.

Exception 2: up to 3 years with authorisation

There's a second option, but it requires an extra step. With prior authorisation from the Supervision of Social Legislation (the labour inspectorate), you can conclude successive contracts for a total duration of up to three years.

The conditions are stricter:

• Each contract must last at least six months (not three)
• The total duration may not exceed three years
• You need authorisation from the labour inspectorate in advance

Applying for that authorisation is not a formality. You must be able to demonstrate why fixed-term contracts are necessary for your situation. The inspectorate assesses each case individually.

In practice, this exception is used less often. Most employers work with the standard arrangement of four contracts in two years. But for specific projects or seasonal activities, it can be a solution.

The justified reason: the third route

Alongside these two exceptions, there's another option that is often overlooked. Article 10 of the Employment Contracts Act also allows successive fixed-term contracts if the employer can prove they are justified by:

• The nature of the work (think of seasonal work, project work with varying assignments)
• Other legitimate reasons specific to the company

This may sound like a broad escape clause, but it isn't. The burden of proof lies entirely with the employer. And the courts are strict. You must be able to demonstrate concretely why an open-ended contract was not possible.

Examples that case law accepts: seasonal activities in agriculture, successive theatre productions in the cultural sector, or economically difficult periods in which the employer can objectively show that the company's future was uncertain.

Examples that don't work: "We wanted to see first whether it was a good fit" or "The budget hadn't been approved yet." In the eyes of a judge, those are not justified reasons.

What happens if you break the rules?

The honest truth? The consequences are significant. And they apply retroactively.

If the legal conditions have not been met, the contract is regarded as an open-ended contract. Not from the moment of the breach, but from the very first contract. That means:

• The employee is entitled to a notice period (or compensation in lieu of notice) calculated on their full seniority
• All social benefits linked to seniority apply retroactively
• On dismissal, you pay compensation based on the total duration of all contracts combined

Imagine you concluded six-month contracts one after another for three years without authorisation from the labour inspectorate. You think: the contract simply ends, no notice needed. But the employee takes the matter to the labour court. The judge rules that an open-ended contract exists. You now have to pay compensation in lieu of notice based on three years of seniority.

Want to know more about how notice periods are calculated? Read our article on calculating notice periods in Belgium.

Combining with replacement contracts

Since 8 May 2023, stricter rules also apply to combining fixed-term contracts with replacement contracts. The total duration of all successive fixed-term contracts and replacement contracts combined may not exceed two years.

There is one exception: if you first conclude successive fixed-term contracts and then a replacement contract, the total duration may be up to three years.

The reverse does not work. If you start with a replacement contract followed by fixed-term contracts, the limit stays at two years.

This is one of those topics where even experienced HR managers sometimes stumble. The rules aren't difficult, but the combination possibilities make them hard to keep track of.

Common mistakes with successive contracts

After more than 15 years in Belgian payroll, we keep seeing the same mistakes come back. The main ones at a glance:

Contracts that are too short A two-month contract falls outside the exception of Article 10bis. Each contract must last at least three months. One contract that is too short, and the entire chain is reclassified.

No written contract before the start A fixed-term contract must be drawn up in writing and signed before the work begins. Forget this, or the employee only signs on day two? Then it counts as an open-ended contract. There is no way to fix it.

Misjudging interruptions The law refers to successive contracts "without an interruption attributable to the employee". A weekend in between does not count as an interruption. Nor do two weeks of holiday imposed by the employer. Only an interruption genuinely attributable to the employee (such as an unjustified absence) breaks the chain.

The five-contracts trap Some employers think they can simply wait a month after four contracts and then start counting again. Case law is not unanimous on this, but many labour courts look at the whole picture. If it's clear the arrangement is intended to circumvent the law, the judge will see straight through it.

Extending verbally "We agreed that you'd just keep showing up." That is not a valid fixed-term contract. Without a written agreement with an end date, it automatically counts as open-ended.

At Recruit, we draw up contracts that automatically meet all legal requirements. The system warns you when you're approaching the limits for successive contracts, so you're never caught off guard.

When is an open-ended contract the better choice?

Not every situation calls for a fixed-term contract. Sometimes a permanent contract is simply the better option. Honestly, that's the case more often than many employers think.

A fixed-term contract fits when:

• You need someone for a defined project with a clear end date
• There is seasonal work or a temporary peak
• You're replacing a sick or absent employee
• You have a specific assignment that isn't structural

An open-ended contract is a better fit when:

• The role is structural and permanently needed
• You've already concluded two or more fixed-term contracts with the same person
• You want to keep the employee for the long term
• The cost of a mistake with successive contracts is higher than the compensation in lieu of notice for a permanent contract

We previously wrote a comprehensive guide to all types of employment contracts to help you make the right choice.

In practice: how do you keep track?

If you work with several temporary staff, keeping track of contract terms quickly becomes an administrative puzzle. Which contract ends when? How many contracts has this employee already had? Are we still within the two years?

A few practical tips:

• Keep an overview per employee of all fixed-term contracts, including start and end dates
• Note the sequence number of each contract (first, second, third, fourth)
• Calculate the total duration of all contracts combined
• Set reminders for end dates, so you're not caught off guard
• Store signed contracts carefully, because in the event of a dispute you, as the employer, must prove that everything was done correctly

You can keep track of this manually in a spreadsheet. But with several temporary workers, that quickly becomes error-prone. Recruit automatically tracks how many contracts are running per employee and flags when you're approaching the legal limits.

Want to know more about temporary agency contracts specifically? Take a look at our article on temporary agency contracts in Belgium.

The role of the Joint Committee

The rules on successive fixed-term contracts are laid down in law and apply to all sectors. But some Joint Committees have made additional arrangements that are stricter or more specific.

In certain sectors, such as construction (JC 124) or hospitality (JC 302), there are sector-specific rules for day contracts and short assignments that can affect how successive contracts are assessed.

Always check the sectoral collective labour agreements (CLAs) of your Joint Committee. What is legally allowed may still be restricted at sector level.

You'll find more about the specific rules per Joint Committee and their impact on contracts in our article on fixed-term contracts.

In short

The rules on successive fixed-term contracts aren't complicated, but the consequences of a mistake certainly are. You may conclude a maximum of four contracts in two years, with a minimum duration of three months per contract. With authorisation from the labour inspectorate, that can go up to three years, but then with a minimum of six months per contract.

Break the rules? Then the entire sequence automatically becomes an open-ended contract, with all the financial consequences that entails.

The best advice? Use fixed-term contracts for what they're intended for: temporary, clearly defined situations. And as soon as you notice you need an employee on a structural basis, switch to a permanent contract. That's not only legally safer, it's also better for your team's motivation and engagement.

Frequently asked questions

How many successive fixed-term contracts am I allowed to conclude? A maximum of four, on condition that each contract lasts at least three months and the total duration does not exceed two years. With prior authorisation from the labour inspectorate, it can go up to three years, but then each contract must last at least six months.

What if I accidentally conclude a fifth contract? Then the legal presumption applies that an open-ended contract exists. And that works retroactively: seniority is calculated from the very first contract.

Does a weekend count as an interruption between two contracts? No. A weekend, a public holiday or a short period not attributable to the employee does not count as an interruption. Only an interruption the employee has caused themselves (such as an unjustified absence) breaks the chain.

Can I wait a month after four contracts and start again? That's a grey area. The law doesn't say anything explicit about it, but labour courts look at the intent. If it's clear the interruption is artificial and meant to circumvent the law, the judge will see straight through it.

What's the difference with a replacement contract? A replacement contract is concluded to replace a specific employee. Since May 2023, successive fixed-term contracts and replacement contracts are counted together, with a maximum total duration of two years (or three years in certain cases).

Does a fixed-term contract have to be in writing? Yes, always. And it must be signed before the work begins. Without a written contract, it automatically counts as an open-ended contract.

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How Recruit helps you

Drawing up contracts that are 100% compliant with Belgian legislation? We take care of it.

With Recruit:

• Contracts in under 60 seconds: create trial and temporary agency contracts without any hassle
• Automatic salary calculation: correct pay in line with current legislation and your Joint Committee
• Dimona (immediate employment declaration) and social documents: we handle all the declarations, you focus on your business
• 24/7 personal support: always a dedicated contact who knows your company
• No fixed monthly costs: pay only for what you use

Try Recruit or get in touch with our HR experts for tailored advice.

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The information in this article is purely informative and does not replace professional legal or accounting advice. Employment legislation changes regularly. Always consult the current legislation or contact an HR expert for advice tailored to your situation. Please note: the rules may differ per Joint Committee and sector.