Employer Not Paying Your Redundancy Payment What Now

Transition payment: employer not paying, what now?

Is your employer failing to pay the transition payment? Below you can read what steps to take to obtain the money you are owed, including, if necessary, through the subdistrict court.

You have been dismissed, you are entitled to a transition payment, but the money has not arrived. That is frustrating and financially serious. Fortunately, the law is on your side: there are clear steps you can take to obtain what you are entitled to.

When must your employer pay?

The law is clear about the payment deadline. Your employer is required to transfer the transition payment no later than one month after the end of the employment. If they fail to do so on time, the clock starts ticking immediately: from the second month onwards, your employer owes statutory interest on the outstanding amount.

Has a payment arrangement been agreed in writing in advance? If so, your employer may pay the compensation in instalments, spread over a maximum of six months. This is, however, the exception rather than the rule, and requires an explicit, prior written agreement.

Reasons why employers do not pay

In practice, there are various reasons why an employer fails to pay the transition payment in full or at all. Sometimes the employer simply denies that an entitlement exists — for example, by arguing that there was serious culpable conduct on your part. In other cases, the employer deliberately calculates too low a figure by excluding certain pay components from the calculation. Think of holiday pay, a fixed year-end bonus, or a structural bonus — all components that must be included. And sometimes the company's deteriorating financial position plays a role, although this generally does not release the employer from their payment obligation.

Five steps if your employer does not pay

If you cannot resolve the matter yourself, take the following steps in the correct order:

• Set out your claim in writing. Send a letter or email reminding your employer of their payment obligation and setting a specific payment deadline. This will also serve as evidence in any potential proceedings.
• Calculate your compensation yourself. Check via the official calculation tool provided by the Dutch central government whether the amount offered is correct. In 2026, the maximum transition payment is €102,000 gross, or one year's salary if that is higher. The accrual rate is one third of a monthly salary for each full year worked.
• Issue a formal demand if the refusal continues. If your employer does not respond, send a recorded-delivery letter of demand. State the amount owed, the due date, and that you are considering legal action.
• Engage an employment lawyer. An employment lawyer will assess your situation, verify that the calculation is correct, and conduct correspondence on your behalf. This considerably strengthens your position.
• Submit a petition to the subdistrict court. If the employer still does not pay after all of the above, you can go to the subdistrict court. Pay close attention: a limitation period of three months from the end of the employment applies. If you wait longer, you lose the right to enforce payment through the courts.

The three-month period is crucial.

The three-month period is strict and set out in statute. After the end of your employment you have exactly that time to submit a petition to the subdistrict court if your employer refuses to pay or pays too little. This also applies if you believe the employer has calculated too low an amount. Do not wait in the hope that things will resolve themselves — doing so will cost you your legal protection.

Are you unsure whether the three months are almost up? Contact an employment lawyer immediately so that you can still take action in time.

What can the subdistrict court do?

The subdistrict court can order the employer to pay the full transition payment, including any statutory interest that has accrued. If the employer also acted seriously culpably in connection with the dismissal, the court may additionally award a fair compensation payment. That fair compensation payment has no statutory maximum and can, in exceptional cases, be substantial.

Bear in mind further that the court may also take legal costs into account. A well-substantiated petition, preferably drafted by a lawyer, increases the likelihood of a favourable outcome.

Exception: employer insolvency.

If your employer has been declared bankrupt or granted a suspension of payments, an exception applies. In such a case, the employer is generally no longer able to pay the compensation. The transition payment then becomes a claim against the estate, but in practice there is often little to distribute in a bankruptcy. In such a situation it is advisable to seek legal advice quickly regarding alternative options.

Practical tips to strengthen your position.

• Keep all correspondence with your employer regarding the dismissal, including text messages and emails.
• Note the exact date on which your employment ended — this is the starting point of the three-month period.
• Calculate your transition payment on the basis of your full monthly salary including holiday allowance and any fixed supplements.
• Always draft a letter of demand in writing and send it by recorded delivery, so that you have proof of receipt.
• Do not wait until the last week of the period; seek help in good time.
• Always ask a legal professional to check whether the amount offered has been calculated in full and correctly.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand how significant it is when your employer fails to pay up. We assist employees in Eindhoven and the Brabant region in claiming the transition payment to which they are entitled: from an initial assessment of your situation to drafting a petition for the subdistrict court. Contact us without obligation and we will look at the best course of action for your situation together with you.

Frequently asked questions

How long does my employer have to pay the transition payment?

Your employer must pay the transition payment no later than one month after the end of the employment. If payment is made later, your employer owes statutory interest on the outstanding amount from that point onwards.

What is the final deadline for involving the subdistrict court if my employer does not pay?

You have three months after the end of your employment to submit a petition to the subdistrict court. After those three months your right to enforce payment through the courts lapses. It is therefore important that you act promptly.

Can my employer refuse to pay the transition payment on the grounds that I acted culpably?

Only in cases of serious culpable conduct on your part — such as theft or fraud — can the employer refuse to pay the transition payment. Ordinary conflicts, underperformance or a difference of opinion are generally not sufficient grounds for refusal. The threshold for 'serious culpability' is a high one.

What if my employer pays too little transition payment?

If the amount paid is too low — for example because salary components such as holiday allowance or a fixed bonus have been left out — you can also take that matter to the subdistrict court. The three-month period applies in this case as well. Have an employment lawyer check the calculation before the period expires.

What is the maximum transition payment in 2026?

In 2026 the maximum transition payment is €102,000 gross. If you earn more than €102,000 per year, your annual salary serves as the maximum. The payment accrues at one third of a monthly salary for each full year of service.

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.