When are you entitled to a transition payment?
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Detailed explanation, checklist and sources
If your employer ends the employment relationship or does not renew a temporary contract, you are usually entitled to a transition payment. The entitlement generally accrues from the first working day.
General information about Dutch law · Reviewed on · How we work
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Dismissal at the employer's initiative
The principle is that an employer pays a transition payment upon dismissal. This may also apply when a temporary contract is not renewed and upon dismissal after illness.
Resigning yourself
In the case of voluntary departure, there is generally no entitlement. In special circumstances, this may differ where the employer has acted or failed to act in a seriously culpable manner.
A settlement agreement is a negotiation
In the case of termination by mutual consent, the same statutory entitlement does not automatically exist. Compensation of at least the amount of the transition payment is often used as a basis for negotiation.
Check exceptions before calculating
A calculated amount does not prove entitlement. Have matters such as an offered contract renewal, seriously culpable conduct, dismissal upon reaching retirement age, a collective-agreement substitute for economic dismissal or employer insolvency assessed. A separate exception concerns workers under 18 who averaged fewer than 12 hours a week. Keep the offer, response and end date; do not rely solely on the dismissal letter if uncertain.
Rijksoverheid · TransitievergoedingPayment missing?
Use the unpaid transition-payment guide and have the deadline checked immediately: an application for payment generally must reach the court within three months after the contract ends. A letter or help request here does not replace that application.
Rijksoverheid · TransitievergoedingYour checklist
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- Who took the initiative for termination?
- What is the exact end date?
- How long did the employment relationship last?
- Which fixed and variable salary components count?
- Is there a collective labour agreement provision or special exception?
Frequently asked questions
Will I receive compensation if I am dismissed during my probationary period?
According to the Dutch Government, the transition payment accrues from the first working day. Therefore, a small amount may be due upon dismissal during the probationary period.
Does illness count in the calculation?
Illness does not in principle reduce the agreed gross salary for this calculation. The Dutch Government explains which salary basis is used.