Severance payments

Transition Payment

The transition payment is a statutory severance payment. Every employee that has been employed with the company for a minimum of 24 months is, in principle, entitled to the transition payment in the event of an involuntary termination (or non-renewal) of the agreement. This includes employees with employment agreements for a definite period, even if the agreement ends by operation of law. The transition payment is not due in case of termination of the employment agreement with mutual consent.

 

The amount of the transition payment is calculated as follows:

  • First 10 years of service: 1/3 of the gross monthly salary per year of service;
  • After 10 years of service: 1/2 of the gross monthly salary per year of service;
  • After 10 years of service and at age 50 years or older: 1 gross monthly salary per additional year of service.

 

The gross monthly salary includes the holiday allowance, structural overtime and the average bonus and/or 13th month. The transition payment may not exceed €77,000 gross, or an amount equal to the employee’s annual salary if higher than €77,000 gross. The transition payment can be calculated here.

 

Fair Payment

In addition to the transition payment, the employee might, in rare situations, be entitled to a fair payment. This is only the case in exceptional circumstances, such as in the event of serious culpable acts by the employer. The payment is meant to compensate injustice that has been done to the employee.

 

Regarding the amount of the fair payment, the courts are free to determine this individually. The sum of the payment should be decided in relation to the culpable acts of the employer. The amount of the salary and length of employment are not necessarily relevant, since these factors have already been taken into account for the transition payment. The court can, however, take the employee's financial situation into consideration.

Contact infomation

If you have any questions or want more informatie, don't hesitate to contact your main contact person.​​