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Calculating redundancy pay and training costs can your employer deduct them?

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If you are made redundant, you are in most cases entitled to a transitional redundancy payment. But what if your employer wishes to offset training costs against that amount? Whether you simply have to accept this depends on strict statutory rules. Below you can read exactly how this works.

How redundancy pay is calculated in 2026

The amount of the redundancy payment is determined by two factors: the length of service and the level of gross monthly salary. The basic rule is straightforward: for each full year of service, you accrue one third of a gross monthly salary, counting from the very first working day. For any remaining months or individual days, the payment is calculated on a pro-rata basis.

In 2026, a statutory maximum of €102,000 gross applies. If you earn more than that per year, your maximum payment equals one gross annual salary. This maximum is indexed annually on the basis of contractual wage growth; in 2025 the threshold was still €98,000.

Two types of costs an employer may deduct

The law draws a clear distinction between two categories of costs that an employer may, subject to conditions, offset against the redundancy payment.

Transition costs are costs aimed at preventing or shortening a period of unemployment. Examples include training or outplacement directly related to the move to other work, or an extended notice period during which the employee is released from duties so as to have more time to apply for jobs.

Employability costs are costs that an employer has incurred earlier during the employment relationship in order to broaden the employee’s deployability, independently of any impending redundancy situation. Examples include training for an entirely different role, whether outside or — since 1 July 2020 — also within the same organisation, provided it concerns a different role from the current one.

When training costs may not be deducted

Not every course or training programme qualifies for deduction. There are clear limits:

  • Training that is required by law or under a collective agreement must be provided by the employer free of charge and can never be deducted from the redundancy payment.
  • Costs relating to reintegration or redeployment in the context of illness may likewise not be offset.
  • Courses aimed solely at improving performance in the current role are also ineligible.
  • Has the employer agreed a training costs clause under which the cost of the training can already be recovered from the employee? In that case, the same training may not also be deducted from the redundancy payment.

The conditions for a lawful deduction

If an employer wishes to offset training or employability costs, a series of cumulative conditions must be met. If any of the required agreements are absent or incorrect, the right to deduct lapses entirely. The principal conditions are:

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  • The costs must have been specified in advance and communicated to you as the employee in writing, before they are incurred.
  • You must have given your written consent to the offsetting of those specific costs against a future redundancy payment.
  • The costs must have been borne by the employer personally, specifically for your benefit as an employee.
  • The costs must not be recoverable elsewhere or from you as the employee.
  • For employability costs, the additional condition applies that they must in principle have been incurred within five years prior to the date of dismissal — unless employer and employee have agreed a different period in writing.
  • The costs must be proportionate to the purpose for which they were incurred.

If your employer does not meet all of these requirements, those costs may not be deducted from your redundancy payment.

Practical points to bear in mind for employees in Eindhoven

If, as an employee in the Eindhoven or Brabant region, you are faced with a redundancy situation in which your employer wishes to offset costs, it is advisable to check carefully that all conditions have been satisfied. Pay attention to the following:

  • Always request an itemised overview of the costs the employer wishes to deduct.
  • Check whether you previously gave written consent to the deduction of those specific costs.
  • Establish whether the training in question was compulsory — such training can never be offset.
  • Check whether there is a training costs clause in your employment contract, as in that case deduction from the redundancy payment is in principle excluded.
  • Be mindful of the five-year rule: costs incurred more than five years ago may, as a general rule, no longer be deducted.
  • When a settlement agreement is involved, always have it checked to ensure that the stated redundancy payment has been correctly calculated and that any deductions applied are lawful.

Are you unsure whether the calculation is correct, or whether the deduction your employer is applying is lawful? Have this assessed before you agree to anything. An agreement once signed is legally binding.

Why Arbeidsjurist Eindhoven

At Arbeidsjurist Eindhoven we know the local labour market and can help you quickly gain a clear understanding of your position. Whether you are uncertain about the amount of your redundancy payment, unsure whether a deduction applied by your employer is justified, or wish to have a settlement agreement reviewed — we offer practical, straightforward guidance. Contact us without obligation for an initial exploratory conversation. You do not have to face this alone.

Frequently asked questions

Can my employer simply deduct training costs from my redundancy payment?

No, that is not simply permitted. Deduction of training costs is only allowed if a series of strict conditions have been met. For instance, the costs must have been communicated in advance in writing and you as the employee must also have given written consent before the costs were incurred. If that consent is absent, the right to deduct lapses.

Which training costs may an employer never deduct from the redundancy payment?

Costs for training that is required by law or under a collective agreement may never be offset. The same applies to courses aimed solely at improving performance in the current role, to reintegration costs, and to training that can already be recovered from the employee on the basis of a training costs clause.

What is the maximum redundancy payment in 2026?

The maximum redundancy payment as of 1 January 2026 is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the maximum. This amount is indexed annually on the basis of contractual wage growth.

How far back may an employer offset employability costs against the redundancy payment?

In principle, only costs incurred in the five years preceding the date of dismissal may be deducted. Employer and employee may agree a different period in writing, but this must be explicitly recorded.

What should I do if I suspect my employer is wrongly deducting training costs?

First, request an itemised overview of the costs your employer wishes to offset and check whether you ever gave written consent to that specific deduction. If that is not the case, or if the employer does not meet the other statutory conditions, the deduction is not permitted. Have the situation assessed by an employment law specialist before you sign any document.

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.

Roy, arbeidsjurist in Eindhoven
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Roy
Arbeidsjurist bij Arbeidsjurist Eindhoven
Roy is arbeidsjurist bij Arbeidsjurist Eindhoven (onderdeel van Adviesgroep Eindhoven). Hij begeleidt werknemers en werkgevers bij ontslag, vaststellingsovereenkomsten en transitievergoedingen, met heldere, persoonlijke en vasthoudende begeleiding — zoals terug te zien in de 84+ vijfsterrenreviews van cliënten.

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