Since 1 July 2015, the employer is obliged to pay the employee a transition payment if, at the initiative of the employer:
- The employment contract is dissolved .
- The fixed-term employment contract is not continued .
There is therefore a transition payment for both temporary and non-temporary employment contracts. If you as an employee resign or do not want to sign a new contract, you are not entitled to a transition payment.
Amount of the transition payment
The amount of the transition payment depends on the duration of your employment and your income. As of 2021, the maximum compensation is legally set at €84,000 gross. If your salary is higher, you will not be paid more than €84,000.
Payment of the transition payment
There is no legal term for payment of the transition payment. However, it has been arranged that as an employee you are entitled to statutory interest on top of the transition payment from 1 month after the termination of your employment contract. Your former employer therefore benefits from paying this amount as soon as possible to avoid rising costs.
If your former employer fails to pay the transition payment, you can file a claim with the subdistrict court. It is important that this takes place within three months after termination of the employment contract. Always be advised by an employment law specialist!
Situations in which you are not entitled to a transition payment
There are a number of situations in which the right to the transition payment does not exist or lapses:
- You ‘re fired by seriously culpable act or omission by you yourself;
- At the time of your dismissal you were not yet 18 years old and you did not work more than 12 hours a week on average;
- You were dismissed because you reached state pension age or other retirement age;
- Your employer is bankrupt, has deferred payment (‘suspension of payment’) or the debt rescheduling scheme for natural persons applies to the employer;
- Your collective labor agreement includes a provision for a transition payment in the event of dismissal for business economic reasons;
- If you entered into a subsequent temporary contract before the termination (by operation of law) of a temporary contract. This is subject to the condition that the new contract takes effect after a maximum of 6 months after the end of the previous contract (and can be terminated in the interim);
- If your employer offers you an equivalent contract before your temporary contract expires;
- If you w employer can offer your temporary contract extension before the contract expires. It doesn’t matter if you accept the offer.
If your dismissal is seriously attributable to your employer, you can also claim an additional fair compensation on top of the transition payment from the subdistrict court . So these are real exceptional cases.
The lawyers of Arslan Lit Advocaten have extensive experience in handling employment law cases on behalf of employees.
For questions about what Arslan Lit Advocaten can do for you, please email us ( firstname.lastname@example.org ) or call us on 020 223 24 66. We are happy to assist you.