TRANSITIONAL ALLOWANCE

Exceptions to transitional allowance

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Exception to transitional compensation possible? Read more about it here.

It is possible that a collective agreement (CLA) may have made substitute agreements instead of the transitional allowance? In principle, an employee is entitled to a transitional allowance if the employment contract is terminated or not extended by the employer. The collective agreement can therefore stipulate that an employee receives a substitute provision instead of a transitional allowance. This has been possible since 1 January 2020 and only in the case of dismissal due to business economic circumstances.

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When substitute provision instead of transitional allowance?

If provided for by a collective bargaining agreement (CAO). As cited above, this is only possible in case of dismissal due to business economic circumstances. The substitute provision does not have to be equivalent to the statutory transitional allowance. However, the provision must contain measures to prevent unemployment or limit its duration. Or a reasonable financial compensation for the dismissal. Or a combination of such measures.

Employment law advice needed on transitional allowance or substitute provision?

Get in touch if you need advice on transitional allowance or substitute provision. The specialists at Arbeidsjurist Eindhoven help both employees and employers determine their rights and obligations. Want to know how much transitional allowance you will receive? Calculate your transitional allowance here!

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