You’ve received a redundancy payment after being made redundant and you’re wondering whether you can use that money towards a course or qualification. The short answer is: yes, you can. As an employee, you’re free to spend the payment however you choose, but opting for training does offer genuine financial advantages. At the same time, employers are bound by a strict framework: not every investment in training can simply be deducted from the Redundancy payment.
What the redundancy payment actually involves
When a dismissal is initiated by the employer, the employee is entitled to a statutory redundancy payment. The amount depends on your gross monthly salary and the length of your employment. The basic rule is: one third of a gross monthly salary for each complete year worked, with partial years calculated on a pro-rata basis. In 2026, the statutory maximum is €102,000 gross, or one gross annual salary if that figure is higher.
When calculating your statutory redundancy pay, fixed pay components such as holiday pay and a fixed year-end bonus are taken into account along with your basic salary. Illness or leave will not affect the calculation: your employer will use the salary you would have earned had you not been absent.
Using your redundancy pay to fund training
As an employee, you are free to decide what you do with the money you receive. You are not obliged to spend the payment on a course or qualification. That said, it can be a smart choice, for two reasons.
Firstly, training improves your prospects in the job market. Secondly, it offers a concrete tax advantage: if you use the redundancy pay for a recognised qualification or an outplacement programme, no income tax needs to be paid on that portion. You can therefore use the full gross amount, rather than losing a significant chunk to tax first.
In practice, this works as follows: you send the invoice for the course or programme to your employer, who then pays the costs directly without deducting income tax on that portion.
What your employer may deduct from your redundancy pay
Employers may also, under certain circumstances, offset training costs against the redundancy payment. That sounds straightforward, but the law sets strict requirements here. A distinction is made between two types of costs.
Transition costs are costs incurred by an employer to assist an employee in transitioning from one role to another. Examples include the services of an outplacement agency, a specialised retraining programme, or an extended notice period during which the employee is relieved of their responsibilities.
Employability costs These are costs associated with training that enhances the employee’s broader employability, even if it is not directly related to their current role. Examples include a leadership development programme for someone who does not hold a managerial position, or a course that prepares the employee for a different role within or outside your organisation.
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Plan a conversationCosts for training that is solely aimed at the employee’s current role, or that is required by law or a collective agreement, may Not be deducted from the redundancy payment. Those costs are always the employer’s responsibility.
The conditions for deduction at a glance
If you wish to offset training costs against a redundancy payment as an employer, several conditions must be met simultaneously. If even one is missing, the right to deduct is lost.
- The employee has given written consent to the offset, ideally already set out in the employment contract.
- The costs were incurred specifically for this employee, not as a general organisational expense.
- The costs are in reasonable proportion to the intended purpose.
- The costs were in principle incurred within the five years prior to the termination of employment, unless otherwise agreed in writing between the employer and employee.
- The costs have not been claimed or reimbursed elsewhere, for example through a training cost clause or a subsidy.
- The costs were communicated to the employee in advance and in writing.
This means for you as an employee in Eindhoven
If you are made redundant and receive a redundancy payment, you have several options. If you use the money for a course or retraining, you will benefit from a lower tax liability. If you use it as a financial buffer, you will simply pay tax on it as regular income. Both options are valid, but it is worth thinking carefully in advance about what best suits your situation.
Are you an employer who has invested in an employee’s development over recent years? It is certainly worth looking into whether, and to what extent, those costs can be offset against the redundancy payment upon dismissal. The rules are complex, and a procedural error can mean you lose the right to deduct.
Why choose Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we help both employees and employers in the Eindhoven and Brabant region to gain clarity on their position. Whether you wish to know if your employer was entitled to deduct training costs when calculating your redundancy pay, or you are an employer seeking certainty on the correct procedure – we are happy to look at your specific situation in detail. Contact us without obligation to arrange an initial consultation.
Frequently asked questions
No, you are not required to spend your redundancy payment on training.
No, as an employee you are entirely free to spend the redundancy payment however you choose. You may also use it as a financial buffer or to supplement your income after redundancy. If you do opt for a recognised qualification or outplacement programme, however, you pay no income tax on that portion and can put the full gross amount to use.
Which training costs can my employer deduct from my redundancy pay?
Your employer may be able to deduct costs that support your transition to other work (transition costs) or that enhance your employability beyond your current role (employability costs). Costs for training required for your current role, or that is compulsory by law or under a collective agreement, can never be deducted. Your employer may never ask you to contribute towards these costs.
How is the redundancy payment calculated in 2026?
The redundancy payment amounts to one third of a gross monthly salary for each complete year worked. Partial years are calculated on a pro-rata basis. The maximum amount in 2026 has been set at €102,000 gross. If an employee earns more than that on an annual basis, the annual salary serves as the maximum.
Can my employer deduct training costs without my permission?
No, that is not permitted. One of the statutory conditions is that you, as the employee, must have given prior written consent to the offset. Without that written agreement, the deduction has no legal basis. Some employers include this in the employment contract, so do check carefully what you have signed.
What happens if the training costs my employer deducts exceed the redundancy payment?
The costs can never exceed the amount of the redundancy payment itself. You, as the employee, therefore never have to pay the difference. Furthermore, costs may only be offset against the portion of the redundancy payment that was accrued during the period in which the training took place.
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