Employment Law

Transition payment in a partial dismissal

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Partial ending of the employment contract may entitle you to (partial) transitional allowance. Read more about the conditions in this blog.

In the case of partial dismissal, you may also be entitled to a partial transition payment. Read below when this applies and how to calculate your amount.

transition payment

Partial dissolution of the employment contract can give entitlement to a transition payment. In 2018 the Supreme Court ruled that where there is no complete dissolution of the employment contract, the employee can claim a (partial) transition payment. This requires a forced reduction in working hours of at least 20%.

Height of transitional allowance for partial dismissal

The amount of the transitional allowance is determined on the basis of the last earned salary. If the employee's working time is substantially and structurally reduced by at least 20%, the employee may be entitled to a transitional allowance for that part. The partial transitional allowance must be calculated in proportion to the reduction in working time, taking as a basis the salary the employee was previously entitled to. On this page about transitional allowance you can calculate the partial transitional allowance.

New employment contract or partial termination of existing contract

According to the Supreme Court, it makes no difference whether an existing contract is dissolved and a new one is offered, or whether there is a partial dissolution. In both situations the right to a partial transition payment arises if the number of working hours is substantially and permanently reduced. Even where the parties mutually agree to a permanent reduction (for example by means of a settlement agreement) the right to a partial transition payment exists.

Advice partial transitional allowance

The advice is to contact an employment law specialist in case of partial dissolution. There are specialists working within Labour Lawyer who can advise you on your rights to partial transitional allowance.



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We are happy to think along with you. For advice tailored to your situation, we would be glad to talk to you. No rights can be derived from the content of this page and it may contain inaccuracies.

Ronald, arbeidsjurist in Eindhoven
Written by
Ronald
Employment lawyer at Employment Lawyer Eindhoven
Ronald is an employment lawyer at Arbeidsjurist Eindhoven, part of Adviesgroep Eindhoven. He assists employees and employers with dismissal, settlement agreements and transition payments, always clear, personal and persistent. That is reflected in more than 85 five-star client reviews.
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