You have been dismissed, you are entitled to transition compensation, but your employer is simply refusing to pay. It's a frustrating situation, but you are not powerless. Dutch employment law gives you concrete means to claim your compensation — provided you act quickly enough.
When are you entitled to transition compensation
The principle is clear: if your employer takes the initiative to terminate the employment contract, you are in principle entitled to transition compensation. This applies both to dismissal via the UWV or the subdistrict court, and to a fixed-term contract that is not renewed. Since 1 January 2020, this right has existed from the very first day of employment, regardless of how long you have been employed.
There are exceptions. For instance, you are not entitled to compensation if your dismissal is the result of serious culpable conduct on your part, or if your employer has been declared bankrupt. If your collective agreement includes an equivalent provision upon dismissal for economic reasons, this can also replace the right to transition compensation. Not sure whether your situation falls under an exception? Always have that assessed by a specialist.
What compensation are you referring to?
Your transition compensation is determined by two factors: the duration of your employment and your salary level. The basic principle is one-third of a gross monthly salary for each full year of service. In 2026, the compensation will be legally capped at €102,000 gross. If your annual salary exceeds €102,000, your gross annual salary will serve as the upper limit.
Would you like an initial indication? You can find more information about the calculation method and what else may play a role in your specific situation on the Transition Compensation Page.
Why employers refuse to pay
In practice, there are various reasons why an employer fails to pay. Sometimes the employer disputes that any entitlement exists at all — for example, because they believe there has been serious culpable conduct on the employee’s part. In other cases, the calculated amount is challenged, or the employer claims that a collective agreement replaces the transition compensation. And sometimes there is simply a case of delaying or ignoring the payment obligation, in the hope that the employee will let it go.
That's understandable, but legally speaking it's a costly mistake. Because if you wait too long, you will permanently lose your entitlement.
The crucial three-month limitation period
This is the point at which many employees come unstuck. Under Article 7:686a of the Dutch Civil Code, a limitation period of three months applies after the end of the employment contract for claiming transition compensation. This period is absolute: it cannot be extended or interrupted. If you submit your petition to the subdistrict court even one day late, you lose your right – regardless of whether your employer raises this themselves.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationFail to act in time and every possible claim to transition compensation will lapse. The court is even obliged to examine this of its own motion. Do not wait and see – take immediate action as soon as it becomes clear that your employer is not going to pay.
Claiming your compensation step by step
Fortunately, you do not have to work this out on your own. Below are the practical steps you can take:
- Verify your entitlement Firstly, establish whether you are actually entitled to redundancy pay and calculate the expected amount based on your years of service and salary.
- Send a written demand Some employers will still pay once they receive clear, written notice. Put everything in writing via email or recorded delivery.
- Consult an employment lawyer Have your situation assessed before taking any steps. A professional will quickly identify whether your employer has a realistic defence or whether your claim is on solid ground.
- Submit a petition in time: If the demand does not result in payment, you must claim payment through petition proceedings before the subdistrict court. This must be done within three months of the end of your employment.
- Claim statutory interest Statutory interest is owed on the amount of the transitional compensation, calculated from one month after the termination of the employment contract. This interest will continue to accrue for as long as your employer fails to pay.
- Consider a joint claim: If several colleagues are in the same situation, a joint procedure can be more cost-effective and lower the threshold for taking legal action.
What if the employer disputes the amount?
It is also possible that your employer pays a certain amount, but less than you are entitled to. Consider situations where holiday pay, a fixed bonus, or a shift allowance has been incorrectly excluded from the calculation. In such cases, you can also claim the difference through the subdistrict court, and the three-month time limit applies here as well. Always have the calculation checked before agreeing to any payment.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we know the local employment market and understand precisely how these situations unfold in practice. We can quickly assess whether your claim for transition compensation is watertight, help you draft a formal demand, and represent you should legal proceedings become necessary. Don't wait for the deadline to pass – contact us without obligation for a free assessment of your situation.
Frequently asked questions
Your employer is not paying the transition compensation. What should you do first?
Begin by sending your employer a written demand requesting that they still pay the compensation. If your employer does not respond or refuses again, engage an employment lawyer immediately and, if necessary, submit a petition to the subdistrict court. Please note: you have only three months from the end of your employment to do so.
The limitation period for claiming transitional compensation is two years.
Under Article 7:686a of the Dutch Civil Code, a limitation period of three months applies from the day your employment contract ended. This period is absolute and cannot be extended or interrupted. If you submit your petition too late, your right to compensation lapses entirely.
Can my employer refuse to pay transition compensation if they believe I acted with serious culpable conduct?
Yes, should there be serious culpable conduct or negligence on your part, the employer is not obliged to pay compensation for transition. This applies to serious matters, such as theft or gross negligence on duty. Whether this applies to your situation will be decided by the court. Always have it assessed by a specialist before assuming you have no entitlement.
Yes, you can also claim statutory interest if your employer pays late.
Yes. Statutory interest is owed on the transitional compensation from one month after the end of your employment contract. The longer your employer delays payment, the higher the total amount they will ultimately have to pay.
What if my employer pays less transition compensation than I've calculated?
If your employer pays insufficient amounts, you can also claim the difference via the sub-district court. Consider situations where holiday pay, fixed bonuses, or allowances have been excluded from the calculation. The three-month limitation period also applies here. Always have the calculation checked by an employment lawyer first.
We're happy to help you brainstorm ideas. For advice tailored to your specific situation, we'd be happy to sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
