The “transitie” payment
It is stipulated by law that you must pay a transition payment upon termination of your employee’s employment contract. This also applies to dismissal. The rationale behind this compensation is that your employee can use it for, for example, retraining for a new job.
Amount of transition allowance
The amount of the transition payment depends on the gross monthly salary. The calculation is made by multiplying the gross monthly wage by 1/3, again multiplied by the number of years the employee has been employed. Any additional fees, bonuses and holiday allowances should be included. The maximum transition payment is legally set at €84,000.
When not to pay a transition fee
There are a number of cases in which you do not have to pay your employee a transition payment. These are:
- Termination of the agreement by mutual consent
- Fired immediately
- Bankruptcy of your company
- A different agreement has been made in the collective labor agreement. This is only possible in case of dismissal for economic reasons
- In case of dismissal as a result of seriously culpable acts or omissions by the employee.
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.