Transition payment: check entitlement before calculating

Transition payment: check entitlement before calculating. General information.

A calculator starts with amounts, but first establish whether you are entitled to a transition payment. This is often the case when the employer initiates dismissal or does not renew a contract. Exceptions exist.

Statutory accrual generally starts on your first working day. A short contract can therefore produce a payment too. List the start and end dates and discuss whether earlier contracts also count.

Use the relevant gross monthly salary. Holiday allowance and other pay components may count alongside basic salary. Collect payslips and details of variable pay. A net bank payment is not a reliable replacement for that calculation basis.

The main rule is one third of the relevant gross monthly salary for each full year of service. A proportionate calculation applies to the remaining part. A statutory maximum also applies: check the amount for the relevant year.

A settlement agreement does not automatically create a statutory transition-payment entitlement. You can use a calculation when negotiating a termination payment. Record exactly which amount and arrangements apply.

A calculator gives an indication, not a final decision. Compare the inputs with contracts and payslips. If you dispute payment or calculation, have your options and deadlines assessed immediately.

Read the full explanation and sources on Employment Law in the Netherlands. Have someone assess which rules apply to your situation.