Transition payment: from calculation to claim
The transition payment is an important financial right for employees who are dismissed. However, being entitled to a transition payment does not automatically mean that you will receive it. In this article, we explain how to calculate the compensation and how to effectively claim it when your employer does not pay voluntarily.
The calculation step by step
Pursuant to Article 7:673 of the Dutch Civil Code (BW), the transition payment amounts to one-third of the gross monthly salary per full year of service. For the remaining period, the compensation is calculated proportionally. When determining the monthly salary, you add the gross monthly salary to the holiday allowance (usually 8%), any thirteenth month payment divided by twelve, and structural allowances such as shift allowances or overtime compensation.
Example: you earn EUR 4,000 gross per month, receive 8% holiday allowance (EUR 320) and a thirteenth month payment (EUR 333 per month). Your monthly salary for the calculation is then EUR 4,653. After six years and four months of service, your transition payment amounts to: (6 + 4/12) x (EUR 4,653 / 3) = EUR 9,839 gross.
When must you claim?
The employer is obliged to pay the transition payment within one month after the end of the employment relationship. If the employer fails to do so, you must file a petition with the subdistrict court within three months after the end of the employment relationship, pursuant to Article 7:686a paragraph 4 of the Dutch Civil Code (BW). This limitation period is strict: if you are too late, you permanently lose your right to the transition payment.
How do you claim the transition payment?
The first step is to formally demand in writing that your employer pay the transition payment. Your lawyer drafts a formal demand with a reasonable payment deadline. If the employer does not respond or refuses to pay, your lawyer files a petition with the subdistrict court. The court assesses whether you are entitled to the transition payment and can order the employer to pay, plus statutory interest if applicable.
Special situations
There are situations in which the calculation is more complex. With varying working hours, the average over the past twelve months is used. In cases of long-term illness, the full period of service counts, including the period of illness. Since 1 April 2020, employers can apply to the UWV for compensation of the transition payment paid upon dismissal after two years of illness, pursuant to the Transition Payment Compensation Scheme.
Arslan Advocaten helps you
Claiming your transition payment requires legal expertise and timely action. At Arslan Advocaten, we calculate your exact transition payment, formally demand payment from your employer, and conduct proceedings at the subdistrict court if necessary. Do not wait too long and contact us directly to safeguard your rights.