Redundancy pay on a fixed-term contract: your rights

Working on a fixed-term contract does not mean you are left empty-handed when it ends. Even if you have a fixed-term contract, you can claim a transition payment. Whether you have worked for a few months or a few years, the law offers you as an employee clear protection. In this article you can read exactly when that right applies, how the payment is calculated and what you need to be aware of.

Fixed-term contracts and transition payments go hand in hand.

A persistent misconception is that the transition payment is reserved solely for permanent employees. That is not correct. transition payment is available to every employee, regardless of the type of contract. The key criterion is who takes the initiative to end the employment relationship. If your employer decides not to renew the fixed-term contract, a statutory right to a payment arises for you immediately. This also applies if your contract simply expires by operation of law and is not continued.

What many people do not know is that this right exists even after just a few months of employment. Since the introduction of the Labour Market in Balance Act (WAB) in 2020, you as an employee accrue the right to a transition payment from the very first working day. A minimum period of service as a threshold no longer exists.

When are you entitled to the payment?

The right to a transition payment upon a fixed-term contract applies in the following situations:

• Your fixed-term contract expires and is not renewed at the initiative of the employer.
• Your employer terminates the contract early (where contractually permitted) via UWV or the subdistrict court.
• You as the employee resign due to seriously culpable conduct by your employer, such as systematic bullying or intimidation in the workplace.

There are also situations in which the right niet applies. You are not entitled to a transition payment if:

• You yourself decline the renewal or resign without the employer having given cause for this.
• You have been dismissed due to your own seriously culpable conduct, such as theft or fraud.
• At the time of dismissal you are under eighteen years of age and worked an average of fewer than twelve hours per week.
• Your employer offers you, prior to the expiry of the contract, an equivalent renewal or new contract that commences within six months and includes an early-termination clause.
• Your employer has been declared bankrupt or has been granted a suspension of payments.

How is the payment calculated for a short period of employment

The calculation is the same for every contract: you receive one third of a monthly salary for each complete year of service worked. If you have worked for less than a full year, the payment is calculated on a pro-rata basis using the months and days worked. Even a period of employment of just a few months therefore already yields an amount, however modest.

Have you had several consecutive fixed-term contracts with the same employer? If so, those contracts are added together, provided the intervening period was no longer than six months. The payment is calculated over the total continuous period of service.

The maximum transition payment in 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 reviewed and set annually on the basis of contractual wage developments.

The notification obligation and your position as a temporary employee

If your contract lasts six months or longer, your employer is subject to the statutory notification obligation. This means that he or she must inform you in writing no later than one month before the end date whether or not the contract will be renewed. If the employer fails to do so, or does so too late, you are entitled to a notification compensation of up to one month's salary, in addition to any transition payment. These are therefore two separate entitlements that do not exclude one another.

Practical tips when your temporary contract comes to an end

• Keep your employment contract(s). Where there are several consecutive contracts, the start date of the first contract determines the amount of the payment.
• Let op de betaaltermijn. The employer must pay the transition payment within one month of the end of the contract.
• Act quickly if payment is not forthcoming. If the employer does not pay, submit a petition to the subdistrict court within three months of the end of the employment to protect your rights.
• Check whether your collective labour agreement contains a deviating arrangement. In some collective labour agreements (CAOs) an alternative provision has been agreed for dismissal on economic grounds. This may replace the statutory transition payment.
• Do not refuse an offer of renewal without careful consideration. If you turn down a reasonable offer yourself, you will in principle lose your entitlement to the payment and possibly your entitlement to an unemployment benefit (WW).
• Have the calculation checked. Particularly where variable pay components such as bonuses or allowances are involved, the calculation can be more complex than you might expect.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we assist employees in the Eindhoven and Brabant region who have questions about their rights when a temporary contract comes to an end. Whether it is a matter of checking a calculation, writing to an employer, or conducting proceedings before the subdistrict court: we are here to provide practical, personal support. Feel free to contact us for an initial discussion about your situation.

Frequently asked questions

Am I entitled to a transition payment if my temporary contract ends after one month?

Yes, in principle you are. Since 2020, you accrue entitlement to a transition payment from your very first working day. The amount is calculated on a pro-rata basis over the period worked, however short that may be. The condition is that the employer takes the initiative not to renew the contract.

What if I indicate myself that I do not wish to renew my temporary contract?

In that case you are in principle not entitled to a transition payment. The right arises only when the initiative not to renew lies with the employer. If you decide not to continue yourself, you lose the right to the payment and you may also miss out on your unemployment benefit (WW) entitlement. An exception applies if your employer has acted in a seriously culpable manner.

Do multiple fixed-term contracts count cumulatively towards the transition payment?

Yes. If you have had multiple consecutive fixed-term contracts with the same employer and the intervening gaps were never longer than six months, all contracts are added together. The transition payment is then calculated on the basis of the total length of service.

What is the maximum transition payment in 2026?

The maximum transition payment in 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 developments.

What can I do if my employer does not pay the transition payment?

If the employer does not pay within one month of the end of the employment, you can submit a petition to the subdistrict court. Please note: you must do this within three months of your contract ending, otherwise your right lapses. In such a situation, seek legal advice as soon as possible.

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.