Transition payment for employees

If your employment contract is terminated or not renewed at your employer’s initiative, you will often be entitled to a transition payment.

This gross payment is intended to provide you with financial support while you bridge the gap to new employment. You are entitled to a transition payment from the first day of your employment. Even if your employment contract is terminated during the probationary period, you may be entitled to the transition payment.

Amount

The amount of the transition payment depends on your gross monthly salary and the number of years you have worked for your employer. The total amount of the transition payment is equal to one third of your gross monthly salary multiplied by the number of years you have worked for your employer. In some cases, years of service with successive employers are also taken into account. This may apply, for example, if your current employer has taken over the business, or part of the business, where you worked for your previous employer.

If you first worked through an agency or as a secondee and then immediately became directly employed while continuing to do the same work, the years you worked as an agency worker or secondee may also count towards the calculation of the transition payment. If there was a gap of more than six months between two contracts, your previous contracts will not count when calculating the transition payment.

Gross monthly salary includes all fixed and variable salary components. A bonus is also partially included in the calculation. Pension contributions and travel expense allowances are not included in the calculation of the transition payment.

Entitlement to a transition payment

You are entitled to a transition payment in the following situations:

• your employment contract is terminated for a reason other than seriously culpable conduct on your part;
• your temporary contract is not renewed at the employer’s initiative;
• you resign because of culpable conduct or omissions by the employer. This may be the case if the employer seriously fails to meet its reintegration obligations in the event of illness. In that case, you must apply to the court for a transition payment. The lawyers at GMW lawyers can advise and assist you with this.

You are not entitled to a transition payment in, among other, the following situations:

• you resign yourself;
• the employment contract ends because you have reached pensionable age;
• you refuse an offer to extend your contract;
• you are dismissed and have acted with serious culpability. Please note that in the event of dismissal for culpable conduct or summary dismissal, there may still be a right to a transition payment;
• employer and employee part ways by mutual consent, often by means of a settlement agreement. In that case, a termination payment is often agreed, but it is not mandatory.

Your employer must pay the transition payment within one month after the last day of your employment contract. If your employer does not do so, you have only three months from the date your employment contract ended to apply to the court and claim payment. The lawyers at GMW lawyers can help you claim the transition payment, preferably out of court, but if necessary in legal proceedings.

Employment conflicts

At work, you spend a great deal of time, often more than at home. It is therefore not unusual for a disagreement to arise, for example about a transfer you do not support, or after an unpleasant performance review. It can also happen that relations between you and your colleague or colleagues become strained. This can escalate into an employment conflict.

Disturbed working relationship

An employment conflict can lead to a disturbed working relationship. Both you and your employer have an obligation to make efforts to resolve the conflict. So keep talking to your employer and keep the conversation respectful.

Mediation

Mediation can be used to resolve an employment conflict. This can be at the request of either the employer or the employee. Under the guidance of an independent mediator, the aim is to reach a solution that all parties support. Because the parties must sign a confidentiality agreement at the start of the mediation process, matters can be discussed freely during mediation. This may result in a return to work, but a termination can also be discussed. In that latter case, we are happy to advise and assist you, either behind the scenes or during the mediation discussion itself.

Mediation can take place between employer and employee, but if there is a conflict between employees, also with the colleague or colleagues involved.

Rights and obligations

If you can no longer resolve the matter yourself and feel that your rights are being violated, or if you are worried about dismissal and your employer has spoken to you about a settlement agreement, the lawyers at GMW lawyers are ready to defend your rights and advise you. If necessary, we can assist you in legal proceedings.

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