What happens if I refuse to sign my new employment contract?

Questioner

At the end of 2019, the department I work for was spun off. Now there is finally an employment contract that is much worse in terms of employment conditions (not in terms of salary, which has remained the same). I am still in doubt whether I actually want to sign, especially because there is a penalty clause in it. What happens if I don't sign? Will I be fired, or will I resign myself? And what about the transition payment now that the employment conditions have become considerably worse?

Lawyer

If you are offered a (new) employment contract that you do not sign, the employment conditions included therein will not come into effect. However, if you do perform work (and are paid for it), it cannot simply be stated that there is no employment contract. So you are not dismissed or anything like that if you do not sign. However, this may create uncertainty about which (precise) employment conditions actually apply. Only if there is dismissal or the employer does not extend an employment contract, you are (in principle) entitled to a transition payment. This also has a 3-month expiry period: you must claim this with the subdistrict court within 3 months after the end date of the employment contract, otherwise this right will lapse.