Negotiating a higher redundancy payment in Eindhoven: here's how to go about it

Negotiating a higher transition payment

You receive a settlement agreement and see a transition payment listed in it. But is that also the maximum you can receive? No, because the statutory transition payment is a minimum, not a ceiling. In many situations you can successfully negotiate a higher payment — particularly if you know which arguments strengthen your position.

The transition payment as a starting point, not an end point

The transition payment is laid down by statute in Article 7:673 of the Dutch Civil Code and amounts to one third of a monthly salary per full year of service. In 2026, the maximum statutory transition payment has been set at €102,000 gross, or one gross annual salary if your annual salary is higher. This is the amount your employer minimaal is required to pay upon dismissal at its initiative. The law does not, however, prohibit employers from paying more — and it is precisely that room which you can make use of during negotiations.

Many dismissals are settled by means of a settlement agreement (VSO). The first proposal your employer makes is rarely the best offer. Employers generally draft a VSO in their own favour. You have the right to make counter-proposals and to request a higher payment — and in most cases employers expect you to do so.

When is negotiating a higher payment likely to succeed

Not every situation lends itself equally well to securing an above-statutory payment. The stronger your legal position, the greater the chance of a better outcome. In practice, the following circumstances strengthen your position:

• Lang dienstverband: Years of loyalty and accumulated knowledge justify additional recognition.
• Zwak ontslagdossier: If your employer has not built a watertight file — think of an underperformance procedure without an improvement plan, or a breakdown in the employment relationship without any attempt at mediation — their legal position is weaker.
• Difficult labour market position: An older age, a specialist field, or a tight regional labour market (even in the Brainport region around Eindhoven certain sectors are unbalanced) are recognised negotiating points.
• Werkgever heeft haast: In the case of a reorganisation or when a department needs to be wound down quickly, the employer wants to move fast — and that gives you room to manoeuvre.
• Culpable conduct by the employer: In cases of serious culpable conduct, the subdistrict court can award a fair compensation on top of the transition payment. That fair compensation has no statutory maximum and can serve as leverage in negotiations.
• Personal circumstances: Family situation, an ongoing mortgage, or high retraining costs can be put forward as arguments for a higher payment.

Smart negotiating tactics in practice

Good negotiating starts before the first meeting. Anyone who comes to the table unprepared leaves money on the table. Bear the following in mind:

• Let the employer make the first offer. If you come forward with a proposal yourself, you weaken your negotiating position. Wait for their proposal and always ask for it in writing, so that you can consider it at your leisure.
• Controleer de berekening. The gross monthly salary used to calculate the transition payment also includes holiday allowance, fixed supplements and a guaranteed thirteenth month. Employers regularly omit these components. Always check this carefully.
• Onderhandel schriftelijk. Verbal agreements lead to misunderstandings and are more difficult to prove legally. Always record your counter-offer and your employer's response in writing.
• Look beyond the payment alone. In a settlement agreement, more points are open for negotiation: a longer notice period, release from work duties, a positive reference letter, reimbursement of legal costs, or the removal of a non-compete clause.
• Ask for a legal costs budget. In most cases, employers are willing to cover the costs of legal assistance. This is common practice — simply ask for it.
• Only sign when you are satisfied. After signing a settlement agreement you have fourteen days in which to change your mind, but it is better to sign only once all agreed terms have been incorporated to your satisfaction.

What can you realistically expect

There is no statutory formula for an above-statutory payment — it is and remains a matter of negotiation. In practice, higher payments in settlement agreements tend to fall somewhere between one and two times the statutory transition payment. In particularly strong circumstances — a very long period of service, a demonstrably weak employer file, or culpable conduct on the part of the employer — the amount may be higher.

In addition to a higher payment, you might also consider a temporary continuation of salary payments or a contribution towards outplacement costs. These are alternatives that can have a financially comparable effect to a higher transition payment. Always discuss the tax implications as well: a larger lump-sum payment is subject to heavy taxation, whereas smart spreading of payments or making use of available tax relief (such as an annuity contribution) can yield more in net terms. Consult a tax adviser for your specific situation.

How an employment lawyer strengthens your position

Negotiating a higher transition payment requires substantive knowledge as well as the right approach. Emotions always play a role in dismissal, and this can unconsciously weaken your negotiating position. An employment lawyer knows which arguments are most effective in practice, understands how employers think, and keeps a cool head where you may momentarily be unable to. Moreover, a lawyer can negotiate on your behalf, so that you do not unnecessarily put the employment relationship under strain.

Would you like to know more about everything relating to the transition payment? Then also read our comprehensive information on the transition payment.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand how the labour market in the Brainport region works and what is happening with employers in the area. We help you gain a clear and swift understanding of your legal position, check the transition payment calculation for accuracy, and — if you wish — negotiate with your employer on your behalf. That way you are not on your own and you get the most out of your dismissal situation.

Would you like to know what is possible in your situation? Contact us without obligation for an initial consultation. We are happy to think things through with you.

Frequently asked questions

Am I always allowed to negotiate a higher transition payment?

Yes. The statutory transition payment is a minimum. In a settlement agreement, you and your employer are free to agree on a higher payment. In most cases, your employer will expect you not to accept the first offer immediately.

What is the maximum statutory transition payment in 2026?

In 2026, the maximum statutory transition payment is €102,000 gross. If your annual salary is higher than that amount, one gross annual salary applies as the maximum. This is the statutory minimum you are entitled to upon dismissal at the employer's initiative — in practice, a higher payment can be agreed.

Which arguments work best when negotiating a higher payment?

Strong arguments include: a long period of service, a weak dismissal file on the employer's part, a difficult position in the labour market (for example due to age or specialism), urgency on the employer's side, and culpable conduct by the employer. Personal circumstances such as family situation or high retraining costs can also be taken into account.

What is a fair compensation payment and how does it relate to the transition payment?

A fair compensation payment is an additional payment that the subdistrict court can award on top of the transition payment, when the employer has acted in a seriously culpable manner. There is no statutory maximum for the fair compensation payment. When negotiating a settlement agreement, you can use the risk of a fair compensation payment as an argument to secure a higher payment.

Are the costs of an employment lawyer during negotiations reimbursed by the employer?

In most cases, yes. It is common practice to request a legal budget as part of a settlement agreement. Employers generally agree to this, as it is also in their interest for the negotiation to proceed smoothly and for you to sign with full knowledge of the facts.

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.