Employment Lawyers
expertise at work

Compensation

An employee is often compensated in case of dismissal. In defining the basic compensation (‘transition allowance’) a standard formula is used.

Transition payment
Employees with an employment contract for more than two years, gain a legal entitlement to severance compensation. This compensation, the ‘transitievergoeding’, is owed when the employer has taken the initiative to terminate the contract (and also when a temporary contract is not extended by the employer).

Calculation transition payment
The transition allowance is (roughly) a third month’s salary per year worked. If the term of employment is over ten years, the employee is entitled to a half month’s salary per year worked for each year the employment has lasted for more than 10 years.

Talk to an expert
schedule an appointment

Maximum basic severance
The maximum transition allowance is EUR 81,000 (2019), or, if higher, a year’s salary.

Exceptions

  1. A transitional arrangement applies to workers aged over 50, until 2020. Under certain conditions, they receive a higher transition allowance.
  2. If a small company ( less than 25 employees) needs to restructure as a result of a bad financial situation, under certain conditions a lower transition allowance may apply.

Equitable Compensation
There can be circumstances in which a cantonal judge may award an extra compensation, on top of the transition allowance. Please feel free to contact our employment lawyers for further details.

Always entitled to a transition allowance?
You will normally not be entitled to a transition allowance, when you resign of when a summary dismissal took place.

Our specialists
Charlotte Buijsman
Employment lawyer litigation and advisory

Michiel Dekker
Employment lawyer litigation and advisory

Our specialists

Charlotte Buijsman
Employment lawyer litigation and advisory

Michiel Dekker
Employment lawyer litigation and advisory

sec arbeidsrecht advocaten
We work for