Have you been made redundant and are wondering whether you are entitled to a transition payment? In most cases the answer is yes, but there are clear conditions. Below you can read exactly when the right to a transition payment arises, when it does not, and what you can do if your employer refuses to pay.
The basic rule: dismissal at the employer's initiative
The core of the right to a transition payment is straightforward: the initiative to end the employment relationship must lie with your employer. If your employer dismisses you through the UWV (Employee Insurance Agency) or the cantonal court, or does not renew your fixed-term contract, you are in principle entitled to this payment. This applies to both permanent and fixed-term contracts.
Since the introduction of the Labour Market in Balance Act (WAB) in 2020, you begin accruing entitlement from your very first working day. You therefore no longer need to have completed a minimum period of service before the right arises. Even if you are dismissed during your probationary period, you can claim the transition payment.
Fixed-term contract and zero-hours worker
Even if you work on a fixed-term contract, you are entitled to a transition payment if it is not renewed. The same applies if you work as a zero-hours worker: you begin accruing entitlement from day one. The type of contract therefore makes no difference to the basic entitlement.
Please note one exception: if your employer offers you a new fixed-term or equivalent contract before your current fixed-term contract expires, and you turn that offer down, your right to the transition payment lapses.
When you are not entitled to a transition payment
There are situations in which the right to a transition payment does not exist. Bear in mind the following circumstances:
- You are resigning of your own free will – if you resign on your own initiative, you are not, in principle, entitled to the payment. An exception applies if your employer has acted in a seriously culpable manner and you were therefore compelled to take that step yourself.
- Dismissal for your own seriously culpable conduct – if the dismissal is directly attributable to your own seriously culpable actions or omissions, the court may rule that you have no entitlement.
- Under 18 years of age and working a few hours – if you are under 18 and work an average of no more than 12 hours per week, the right does not apply.
- State pension age reached – if your employment ends on or after the date on which you reach state pension age, you are not entitled to the payment.
- Employer insolvency – in the event of bankruptcy, suspension of payments or debt restructuring on the part of the employer, the right does not exist in the same way; consult a lawyer in such cases.
- Collective agreement substitute provision – some collective agreements include a substitute provision. From 2026, this will only be permitted in cases of dismissal for economic reasons.
Resigning due to your employer's misconduct
If you resign due to your employer acting in a seriously culpable manner, you may still be entitled to claim a transition payment. Consider scenarios such as persistent non-payment of salary, a serious breach of reintegration obligations, or gross intimidation. In such instances, the cantonal court may also award additional fair compensation on top of the transition payment.
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Plan a conversationHow much is the transition payment in 2026?
The amount of the Transition Payment depends on two factors: the length of your employment and your gross monthly salary. The calculation is straightforward: you receive one third of a monthly salary for each full year worked. Pro-rata calculations apply to any remaining months and days.
The statutory maximum in 2026 is €102,000 gross. If you earn more than €102,000 per year, one gross annual salary applies as the maximum. For comparison, the maximum in 2025 was €98,000. This amount is indexed annually in line with average contractual wage growth.
When calculating the monthly salary, please bear in mind that fixed allowances, holiday pay and, under certain conditions, bonuses may be included. In most cases, years of service accrued with a successor employer are also counted in the calculation.
What if your employer doesn't pay?
Your employer is required to pay the transition payment no later than one month after the end of the employment. If payment is not made, statutory interest begins to accrue. If you have received nothing within three months of the end of your employment, you can go to court to enforce payment. Do not wait too long, as the time limit is strict.
Practical tips when claiming your transition payment
- Always check whether the dismissal is genuinely on the employer’s initiative; the wording in letters and the settlement agreement is crucial in this regard.
- Hold onto all correspondence, the dismissal decision, and contracts in a safe place.
- Please have the payment calculation checked: the amount depends on your full years of service, including any previous consecutive contracts.
- Check whether allowances, a 13th month or bonuses have been included in the calculated monthly salary.
- If you're unsure about your situation, get legal advice without delay — especially if a settlement agreement is also involved.
- Submit your claim before the three-month time limit expires after the end of the employment.
Why an Employment Lawyer in Eindhoven?
At Employment Lawyer Eindhoven, we know employment law inside and out. Whether you've just received a dismissal letter or have been wondering for a while if your transition payment is correct: we'll look at your situation straight away and give you a clear picture of your legal position. No complicated legal jargon – just plain language and a personal approach, as you'd expect in Brabant.
Would you like to know if you are entitled to a transition payment and if the calculated amount is correct? Get in touch with us for a no-obligation consultation. We're happy to help.
Frequently asked questions
Am I entitled to a redundancy payment if my fixed-term contract is not renewed?
Yes. If your employer does not renew your fixed-term contract, you are in principle entitled to a transition payment. This applies even if you were only employed for a short time, as entitlement accrues from the first working day. An exception applies if your employer offers you a new, equivalent contract before the current one expires and you turn it down.
Am I also entitled to a transition payment if I am ill at the time of dismissal?
Yes. Illness does not affect the right to a transition payment. Even if you are (long-term) ill or have been ill in the run-up to your dismissal, you retain your entitlement to the payment in principle. The calculation is based on your full gross monthly salary, not on the sick pay you received.
What is the maximum transition payment in 2026?
The maximum transitional payment in 2026 is €102,000 gross. If you earn more than €102,000 per year, one gross annual salary applies as the maximum. This amount is indexed annually based on average wage growth.
Am I entitled to a transition payment if I resign?
Not in principle. If you resign of your own accord, no right to a transition payment arises. There is one important exception: if your employer has acted in a seriously culpable manner and you had no other option but to resign, you may still be able to claim the payment. Have your situation assessed by an employment lawyer in that case.
Within what time frame must my employer pay the transition payment?
Your employer must pay the transition payment no later than one month after the end of the employment. If they fail to do so, statutory interest begins to accrue. If you have received nothing after three months, you can go to court to enforce payment. Do not wait too long, given the applicable time limit.
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.
