Using your redundancy payment for training is it allowed and what are the rules?

Investing your transition payment in training

Under certain conditions, you can invest your transition payment in training. Below you can read the rules and how to make the most of this for your next step.

You receive a transition payment following dismissal and wonder whether you may use that amount for a course or training programme. The short answer is: yes, you may. As an employee you are free to decide how you spend the payment, but choosing to invest in education does have genuine financial advantages. At the same time, a strict framework applies to employers: not every investment in training may simply be deducted from the transition payment.

What the transition payment entails

When dismissal is initiated by the employer, you as an employee are entitled to a statutory payment. The amount depends on your gross monthly salary and the length of your employment. The starting point is: one third of a gross monthly salary for each full year worked, with partial years included on a pro-rata basis. In 2026 a statutory maximum of € 102,000 gross applies, or one gross annual salary if that amount is higher.

When calculating the transition payment, fixed pay components such as holiday allowance and a fixed year-end bonus are taken into account in addition to your basic salary. Illness or leave has no effect on the calculation: your employer uses the salary you would have earned had you not been absent.

Paying for training out of your transition payment

As an employee you are free to decide what you do with the amount received. You are therefore not obliged to spend the payment on a training programme or course. Nevertheless, doing so can be a smart choice, for two reasons.

First, training improves your prospects on the labour market. Second, it provides a concrete tax advantage: when you spend the transition payment on an accredited training programme or an outplacement trajectory, no wage tax needs to be withheld on that portion. In that case you can use the full gross amount, rather than losing a substantial part of it to tax first.

In practice this works as follows: you send the invoice for the training programme or trajectory to your employer. Your employer then pays the costs directly, without withholding payroll tax on that portion.

What your employer may deduct from the transition payment

Ook werkgevers mogen onder bepaalde omstandigheden scholingskosten in mindering brengen op de transitievergoeding. Dat klinkt simpel, maar de wet stelt hier strikte eisen aan. Er wordt onderscheid gemaakt tussen twee soorten kosten.

Transitiekosten These are expenditures that you as an employer make to support the employee in moving from one job to another. Think of an outplacement agency, a targeted retraining course, or applying a longer notice period during which the employee is released from work.

Inzetbaarheidskosten These are costs for training programmes that promote the broader employability of the employee, even if they fall outside their current role. Think of a leadership training course for someone without a managerial position, or a course that prepares the employee for a different role within or outside your organisation.

Costs for training that is directed solely at the employee's current role, or that is required by law or a collective labour agreement, may niet not be deducted from the transition payment. Those costs are always for your account as the employer.

The conditions for deduction at a glance

If you wish as an employer to offset training costs against the transition payment, several conditions must be met simultaneously. If even one is absent, the right to deduction lapses.

• The employee has given written consent to the offset, preferably already recorded in the employment contract.
• The costs were incurred specifically for this employee, not generically for the organisation.
• The costs are in reasonable proportion to the intended purpose.
• The costs were in principle incurred within the five years preceding the end of the employment, unless the employer and employee have agreed otherwise in writing.
• The costs have not been claimed or reimbursed elsewhere, for example through a study costs clause or a subsidy.
• The costs were communicated to the employee in advance and in writing.

What this means for you as an employee in Eindhoven

If you are dismissed and receive a transition payment, you have several choices. If you use the money for a course or retraining, you benefit from a lower tax disadvantage. If you use it as a financial buffer, you simply pay tax on it as regular income. Both options are valid, but it pays to think carefully in advance about what best suits your situation.

If you are an employer and have invested in an employee's development in recent years, it is certainly worth examining whether and to what extent those costs can be offset upon dismissal. The rules are complex, and an error in the procedure can mean that you lose the deduction.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we assist both employees and employers in the Eindhoven and Brabant region in clarifying their position. Whether you want to know whether your employer was entitled to deduct training costs when calculating the transition payment, or you are an employer seeking certainty about the correct procedure — we are happy to look at your specific situation. Feel free to contact us for an initial consultation with no obligation.

Frequently asked questions

Am I as an employee required to spend my transition payment on training?

No, as an employee you are entirely free in how you spend the transition payment. You may also use it as a financial buffer or to supplement your income after dismissal. If you do choose a recognised course or outplacement programme, you pay no wage tax on that portion and can deploy the full gross amount.

Which training costs may my employer deduct from the transition payment?

Your employer may deduct costs aimed at facilitating your move to other work (transition costs) or at broadening your employability outside your current role (employability costs). Costs for training that is required for your current position, or that is compulsory by law or under a collective labour agreement, may never be deducted. Your employer may never require you to contribute towards those costs.

How is the transition payment calculated in 2026?

The transition payment amounts to one third of a gross monthly salary for each full year worked. Partial years are included on a pro-rata basis. The maximum amount has been set at € 102,000 gross in 2026. 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 consent?

No, that is not permitted. One of the statutory conditions is that you as an employee must have agreed to the deduction in writing in advance. Without that written consent, the deduction has no legal basis. Some employers already include this in the employment contract, so check carefully what you have signed.

What happens if the training costs my employer deducts are higher than the transition payment?

The costs may never exceed the amount of the transition payment itself. You as an employee therefore never have to pay anything on top. Furthermore, the costs may only be offset against the portion of the transition payment that accrued during the period in which the training took place.

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