Notice periods in business contracts: how they work

At home, you can usually cancel a subscription every month once the first term is over. In the Netherlands the law protects consumers in that way. Businesses do not get that protection. In a business contract, what counts is what the contract and the terms and conditions say. If you do not pay attention to that, you can easily be tied in for a year longer than planned.

What is the notice period?

The notice period is the time between the moment you give notice and the moment the contract ends. One to three months is common in business contracts, but longer periods also occur. Important: the period usually counts back from the end date. If your contract ends on 1 March and the notice period is three months, your notice must arrive by 1 December at the latest.

Work out your notice date. Go to the notice period calculator

Automatic renewal

Many business contracts renew automatically if you do not give notice in time. Often for the same term as the original contract, so for example another full year. If the contract or the applicable terms and conditions say so, that is in principle valid. As a business, you cannot simply rely on the monthly notice that consumers have.

How do you give notice?

The way to give notice is often set out in the terms as well. Sometimes an email is enough, sometimes it has to be in writing, through a form or through a portal. Pay attention to three things:

• Use the method the contract requires.
• Make sure you can prove your notice arrived in time. Keep a confirmation of receipt.
• State the contract number and the end date, and ask for written confirmation of the notice.

Where do you find the period?

Look in the contract or the order confirmation first. If it is not there, look in the supplier's terms and conditions. For software it is often in the online terms or in the admin portal under subscription or billing. If you cannot find it, ask the supplier in writing.

Why the notice date matters more than the end date

If you only note the end date, you are too late. The last day you can still give notice is the real moment of decision. So put that date in your calendar, with a reminder a few weeks earlier. That gives you time to decide whether you want to give notice, need fewer licences or want to ask for a better price. Those weeks are exactly when you have the most room to negotiate.

How to keep track

With a few contracts, your calendar will do. With dozens of contracts across different departments, it gets hard. A contract register helps: for each contract the supplier, the costs, the end date, the notice period and who is responsible.

Contracker works out the notice date for every contract and sends the person responsible a reminder well in time. See which notice date comes first. Try Contracker free for 14 days, without payment details.