The transition payment (transitievergoeding) is a statutory severance payment that employees are entitled to upon dismissal. Since 2020, this applies from the first day of employment.
Severance Pay 2024: Calculation and Rights
Everything you need to know about severance pay in the Netherlands. How is it calculated and when are you entitled to it?
Frequently asked questions
When am I entitled to transition compensation?
You are entitled to transition compensation when dismissed by your employer, at the end of a temporary contract, or mutual termination of employment. This applies from the first day of work since 2020.
How is the transition compensation calculated?
Transition compensation is calculated as 1/3 of monthly salary per year of service. For employees with 10+ years of service, 1/2 monthly salary per year applies. Gross salary including fixed allowances is used for calculation.
Can my employer refuse the transition compensation?
Your employer can only refuse transition compensation for dismissal due to urgent cause or if you resign yourself. In case of wrongful refusal, you can take legal action to enforce your rights.
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