Working on a fixed-term contract doesn't mean you'll be left empty-handed when it ends. Even with a contract for a specific duration, you may be entitled to a statutory redundancy payment (transitievergoeding). Whether you've worked for a few months or several years, the law offers you, as an employee, clear protection. In this article, you'll find out exactly when that right applies, how the payment is calculated, and what to look out for.
Fixed-term contracts and redundancy payments are closely linked.
A persistent misconception is that the redundancy payment is reserved solely for permanent members of staff. That is not the case. Redundancy payment is available to every employee, regardless of the type of contract. The key criterion is who takes the initiative to end the employment. If your employer decides not to renew your fixed-term contract, a statutory right to a payment arises for you immediately. The same applies if your contract simply expires by operation of law and is not continued.
What many people don't realise is that this right exists even after just a few months in employment. Since the introduction of the Labour Market in Balance Act (WAB) in 2020, employees accrue the right to a redundancy payment from their very first working day. There is no longer a minimum length of service as a threshold.
When are you entitled to the payment?
The right to a redundancy payment under a fixed-term contract arises in the following situations:
- Your fixed-term contract expires and is not renewed at the employer's initiative.
- Your employer terminates the contract early (where this is contractually permitted) via the UWV or the subdistrict court.
- You as the employee resign due to serious misconduct on the part of your employer, such as persistent bullying or intimidation in the workplace.
There are also situations in which the right Not apply. You are not entitled to a redundancy payment if:
- You yourself decline the renewal of your contract or resign without the employer having given cause to do so.
- You have been dismissed due to gross misconduct on your part, such as theft or fraud.
- You are under the age of eighteen at the time of dismissal and worked an average of fewer than twelve hours per week.
- Prior to the contract expiring, your employer offers you 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 moratorium on 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. If you have worked for less than a full year, the payment is calculated on a pro-rata basis according to the months and days worked. Even a period of employment lasting only a few months therefore generates an amount, however modest.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationHave you had several consecutive fixed-term contracts with the same employer? Those contracts are added together, provided the intervening period between them was no longer than six months. The payment is calculated over the total continuous period of service.
The maximum statutory redundancy pay in 2026 is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary counts as the cap. This figure is reviewed annually based on contractual wage developments.
The notification obligation and your position as a temporary employee
If your contract has a duration of six months or longer, your employer has a statutory notification obligation. This means that they 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 redundancy pay. These are therefore two separate entitlements that do not exclude each other.
Practical tips when your fixed-term contract is coming to an end
- Keep your employment contract(s). Where several consecutive contracts exist, the start date of the first contract determines the amount of the payment.
- Please note the payment deadline. The employer must pay the redundancy payment within one month of the contract ending.
- Act promptly if payment is not forthcoming. If the employer fails to pay, you must submit a petition to the district court within three months from the termination of your employment to protect your entitlement.
- Check whether your collective agreement contains a different arrangement. Some collective agreements include an alternative provision for dismissal on economic grounds, which may replace the statutory redundancy payment.
- Do not refuse a renewal offer without careful consideration. If you reject a reasonable offer yourself, you will in principle lose the right to the payment and potentially also your entitlement to unemployment benefit (WW).
- Have the calculation checked. Particularly where variable pay elements such as bonuses or allowances are involved, the calculation can be more complex than you might expect.
Why Arbeidsjurist Eindhoven?
At Arbeidsjurist Eindhoven, we assist employees in the Eindhoven and Brabant region who have questions about their rights when a fixed-term contract comes to an end. Whether it involves checking a calculation, writing to an employer, or conducting proceedings before the subdistrict court, we are here to support you in a practical and personal way. Contact us without obligation for an initial conversation about your situation.
Frequently asked questions
Am I entitled to a redundancy payment if my fixed-term contract expires after one month?
Yes, in principle you are. Since 2020, employees accrue the right to a redundancy payment from their very first working day. The amount is calculated on a pro-rata basis over the period worked, even if that period is very short. The condition is that the employer takes the initiative not to renew the contract.
What if I indicate that I do not wish to renew my fixed-term contract?
In that case, you are in principle not entitled to a redundancy payment. The right only arises if the initiative not to renew lies with the employer. If you make the decision yourself, the right to the payment lapses and you may also miss out on your entitlement to unemployment benefit (WW). An exception applies if your employer has acted in a seriously culpable manner.
Do multiple fixed-term contracts count cumulatively towards the redundancy payment?
Yes. If you have had several consecutive fixed-term contracts with the same employer and the intervening periods were each no longer than six months, all contracts are added together. The redundancy payment is then calculated over the total period of service.
The maximum statutory redundancy pay is capped at €17,187.
The maximum redundancy payment in 2026 is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary serves as the cap. This amount is indexed annually on the basis of contractual wage developments.
What can I do if my employer does not pay the redundancy payment?
If the employer does not pay within one month of the end of your employment, you can submit a petition to the subdistrict court. Please note: you must do this within three months of the end of your contract, otherwise your right lapses. In such a situation, seek legal advice as quickly as possible.
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.
