Calculating Redundancy Pay in Eindhoven with a Long Period of Service

The longer you work somewhere, the higher the transitional compensation you can receive upon dismissal. Yet many employees in Eindhoven and the surrounding area only discover at the point of redundancy how much their years of dedication are worth in law — and find that their employer has calculated the amount too low. In this article, you will learn exactly how the calculation works for long periods of service, where the pitfalls lie, and when it is wise to seek legal advice.

The basic rule for the calculation

The statutory formula is straightforward: you receive one third of your gross monthly salary for each full year of service. If you have worked somewhere for twenty years, you are in principle entitled to nearly seven full gross monthly salaries. For the portion of employment shorter than a full year — the remaining months and days — the compensation is calculated on a pro-rata basis. Every day counts.

The monthly salary in question is not limited to your basic pay alone. Holiday allowance, any thirteenth month payment, structural shift supplements, and similar fixed pay components are all included when determining the reference salary. Always check that your employer has taken all these elements into account before you agree to anything.

The statutory maximum in 2026

Regardless of how long you have been employed, transitional compensation is subject to a statutory cap. In 2026, the maximum transitional compensation amounts to €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum figure. This cap is indexed annually on the basis of contractual wage developments — in 2025 it stood at €98,000.

With long periods of service and an above-average salary, there is a good chance you will reach this maximum. In that case, additional years of service make no further difference to the statutory compensation. If you are aware of this in good time, you can enter into negotiations for a transitional payment that exceeds the statutory minimum.

Where things often go wrong with long periods of service

It is precisely with employees who have worked for the same employer for ten, twenty, or sometimes thirty years that we regularly see errors in the calculation. The most common are:

• Incomplete pay components: holiday allowance or an annual bonus is excluded from the calculation, even though it should be included if paid on a structural basis.
• Incorrect start date: the employer does not fully count earlier employment contracts with the same employer or a legal successor.
• Rounded down to whole years: some employers only calculate using complete years of service and disregard the remaining months and days, which can easily amount to hundreds of pounds with a long period of service.
• Incorrect reference salary for part-time or variable pay: where there have been role changes or promotions during employment, the most recent salary is decisive, not an average.
• Agreeing too quickly to a settlement agreement: the employer presents a figure as final, when negotiation is in fact possible.

Successive employment counts towards the calculation

Have you worked for the same client or legal successor through an agency, secondment, or business transfer before signing your current contract? In that case, the preceding period may count towards the calculation of your length of service. This is known as successive employment. This is a particularly common issue for those with long periods of service in Eindhoven’s manufacturing industry, the healthcare sector, or logistics along the A2 corridor. Always verify this before accepting the final calculation.

Negotiating above the statutory minimum

The statutory transitional compensation is a minimum entitlement — not a maximum. Under a settlement agreement, employer and employee are free to agree a higher payment. With long periods of service there are additional arguments for securing more, such as reduced employability on the labour market after twenty years with a single employer, a highly specialised role, or the employee’s personal circumstances. An employment lawyer who knows the local labour market in Eindhoven and Brabant can assess what is realistically open to negotiation.

Practical steps if you have a long period of service

• Gather all your employment contracts, including any earlier contracts with the same employer (or their legal predecessor).
• Check which fixed pay components you receive monthly or annually and ensure they are all included in the reference salary.
• Calculate the compensation yourself — or have it calculated — before you sign anything.
• Put questions to your employer in writing if you have any doubts about the calculation; ask for an itemised breakdown.
• Never sign a settlement agreement without having it reviewed first; you are legally entitled to a minimum of fourteen days to reconsider after signing.
• Engage an employment lawyer promptly — ideally before entering into discussions, so that you are fully prepared.

Why Arbeidsjurist Eindhoven

At Arbeidsjurist Eindhoven, we understand how significant redundancy is after a long period of service. You have contributed for years — it is only natural that you want to know whether the payment being offered is genuinely correct. We check your transitional compensation calculation, assess whether there is scope to negotiate more, and guide you step by step through the process. No legal jargon — just clear, straightforward advice tailored to your situation in Eindhoven or the wider region.

Contact us without obligation for an initial consultation — you will quickly know exactly where you stand.

We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.