Permanent job & temporary contract
Whether you have a permanent contract or a temporary work / ww makes a big difference when applying for a loan. Housing costs also play an important role. A random example at Rabo Bank shows the difference in outcome. A single man with a permanent job, € 1900 gross salary and € 350 housing costs can borrow € 12,500. The same man but now with a temporary contract cannot borrow anything. There are, however, opportunities to borrow for temporary workers who have been working for a while.
Loan with Declaration of Intent
It is also possible to borrow money with temporary work. If you have already received two temporary contracts within three years, you can still get a third temporary contract. After that third period, a legal right to a permanent job arises. If your employer is satisfied with your temporary work and you want to take out a loan? Then ask your employer for a declaration of intent. This is a statement from the employer stating that they intend to offer you an open-ended contract. Please note: the declaration of intent is not legally binding. You cannot grant rights that you will actually get a permanent job. The declaration of intent is an important document for the bank and can be decisive for offering you a loan or mortgage.
Borrow with a temporary contract
There are a number of important changes for adult employees with a temporary contract. For example, the employer may no longer include a probationary period in a contract of 6 months or less. A maximum of 3 temporary contracts may also be given in a two-year period.
After this you are entitled to a permanent contract. If your employer wants to get rid of this, he must not offer you work for at least 6 months at the company. Zero hours contracts are also limited. If your contract of at least 6 months is not renewed, the employer must inform you at least one month in advance. If your employer neglects this cancellation period, you are entitled to compensation of a maximum of a monthly salary.
There is something in return for the companies. The maximum unemployment period will be reduced in the coming years from 38 months to 24 months. In addition, beneficiaries must accept all work after six months. The benefits agency can then reduce people to their benefits if they do not accept certain jobs.