All about Transition payment

Transition payment is a legal severance payment. The amount is determined by the monthly salary and the duration of employment. Calculate it here!

Right to transition payment

When an employee is dismissed after at least 2 years of employment or the employment contract is not extended, there is automatically a right to a transition payment. Even after 2 years of illness. The situations in which the right exists are:

  • The temporary contract is not extended
  • The contract is terminated during the probationary period
  • The contract is dissolved with UWV approval
  • The contract is dissolved with the approval of a subdistrict court judge

    Even with partial termination, you are entitled to transition payment. You may also be entitled to a transitional payment if you terminate your contract yourself. However, this is only possible in very serious situations. It is therefore wise to be well informed about the possibilities and the possible compensation to which you are entitled.

Calculate your transition payment

Do you want to calculate your transition payment? Enter your data in the tool below and see how much you are entitled to.

Document

Datum buiten dienst moet na/groter zijn dan de dienstdatum.

Uitkomst transitievergoeding

Werknemer gegevens

Datum dienst January 3, 1990
Datum buiten dienst Nov 19, 2021
Bruto maandinkomen €3,456.00

Duur van het dienstverband

Duur van het dienstverband January 3, 1990

Berekening transitievergoeding

31 jaren x €3,456.00 x 1/3 €35,712.00
31 maanden x €3,456.00 x 1/3 x 1/12 €960.00
31 dagen x €3,456.00 x 1/3 x 1/365 €53.65
Resultaat €36,725.65

Calculate your transition payment

Wil je jouw transitievergoeding berekenen? Vul dan in onderstaande rekentool jouw gegevens in en zie op welk bedrag aan transitievergoeding jij recht hebt.

Document

Datum buiten dienst moet na/groter zijn dan de dienstdatum.

Uitkomst transitievergoeding

Werknemer gegevens

Datum dienst January 3, 1990
Datum buiten dienst Nov 19, 2021
Bruto maandinkomen €3,456.00

Duur van het dienstverband

Duur van het dienstverband January 3, 1990

Berekening transitievergoeding

31 jaren x €3,456.00 x 1/3 €35,712.00
31 maanden x €3,456.00 x 1/3 x 1/12 €960.00
31 dagen x €3,456.00 x 1/3 x 1/365 €53.65
Resultaat €36,725.65
Administratie en boek
Personal tax return

Ammount of transition payment 2023

The amount of the transition payment depends, among other things, on the number of years of service and the employee's salary. As of January 1, 2023, the transition compensation is a maximum of €89,000 gross or, if your annual salary is higher than €89,000, a maximum of one gross annual salary The employee is entitled to 1/3 monthly salary per whole year of service from the first day of employment. 

  • 1/3 monthly salary for all full years of service;
  • 1/36 monthly salary for the remaining full months and;
  • 1/1095 monthly salary for any remaining days.

    Wat is de hoogte van jouw transitievergoeding? Dit bereken je eenvoudig met de rekentool transitievergoeding. Hoeveel belasting je moet betalen over de transitievergoeding lees je in de blog transitievergoeding en belastingen.
“Businesses that grow by development and improvement do not die.”
Henry Ford

Frequently asked questions about transition payment

Find here the answers to frequently asked questions by employees and employers about transition payment.

No. There are situations in which you will not receive a transition payment, for example if the dismissal is due to fault or if you have already agreed on another form of compensation. In most cases, however, you can count on a transition payment. It is therefore important to know your rights and obligations as an employee well, so that you know where you stand in the event of dismissal.

The transition payment is a statutory severance payment. The regulation transition payment is included in Article 7:673 of the Civil Code. The purpose of the transition compensation is to financially facilitate the employee's transition (transition) to other work. The transition payment is also a compensation for dismissal. The employee can use the compensation for the cost of training or support to other work.

 

The difference between these compensations is that the transition payment is regulated by law. Severance pay is not regulated by law. The transition payment is a right to which the employee is automatically entitled in certain situations. Namely, when the employer terminates or does not renew the employment contract. The severance pay (or termination payment) may be based on the outcome of the legal transition payment but it does not have to be. The severance payment agreed upon by the parties can be higher or even lower than the legal transition compensation.

First, you need to determine the monthly salary, which consists of the basic salary + fixed and variable salary components. Then you need to determine the working hours (start date and expected end date). Based on this information you can calculate the transition payment. When determining the working hours, the period that you performed work for the employer through a temporary employment agency should also be included.

An employee may also be entitled to a transition payment in the event of partial termination of the employment contract, with or without a settlement agreement. In the event that working hours are structurally reduced by at least 20%, then the employee may be proportionally entitled to partial transition payment. We provide more information on this in the blog partial termination transition payment.

The statutory transition payment is composed of three calculations.

  • 1/3 monthly salary for all full years of service
  • 1/36 monthly salary for the remaining full months of service
  • 1/1095 monthly salary for the remaining days.

After 2 years of illness, the employer may terminate the employment contract after receiving permission through the UWV or may choose to enter into a settlement agreement. In both cases, the employee can claim the statutory transitional payment. In our blog sick leave and transition payment, you can read all about what rights an employee has when he leaves employment sick.

In the situation where the employer may terminate the employment contract with the permission of the UWV or the subdistrict court, you cannot negotiate about the transition payment. Then the right to the transition payment, which is calculated according to a fixed formula, arises automatically. However, you can negotiate the severance pay and other conditions in case the employer offers a settlement agreement. The settlement agreement may include a higher or lower transition payment.

The employer does not have to pay a transition fee if the employee gives notice himself. Not even in the situation where the employee is summarily dismissed due to serious culpable actions. If the collective bargaining agreement includes a substitute provision that replaces the statutory transition payment, the employer does not have to pay any transition compensation either. You can read more about the substitute provision as an exception to the transition payment in our blog on this topic.

If the employee leaves employment sick then the employer can apply for compensation for the transition payment. Also if the employer of a small company quits because he himself retires or dies, he can ask for a compensation of transition payment. With the compensation transition payment scheme, the employer can get the transition compensation back from the government. Also, some costs incurred by an employer are deductible from the transition payment.

What our clients say about us

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Roy was a great help throughout entire process of exiting the company that I have worked for 12 years. His knowledge and support was invaluable! True specialist in his domain with great people skills that makes the whole process so much easier
Barbara Naumienko
Barbara Naumienko
2023-04-03
I am really satisfied with the legal advice and the support that I got from Mr. Roy van der Wiel. He was able to quickly assess my case and he provided me with solid advice on how to move forward in the negotiation process. He was friendly and approachable which as a client gave me confidence and safety in the process of negotiation. He got the best of the negotiation process for me. For everyone who needs legal advice on work related matters, I sincerely recommend his office.
Sofka Trajcevska
Sofka Trajcevska
2023-03-31
Roy was really helpful in an important matter we needed his assistance with. He listened to our problem, understood the situation and gave the proper advice. The situation was solved and he was with us throughout the whole process.
arturo goldsmit
arturo goldsmit
2023-03-29
Enorm goed geholpen met mijn belastingaangifte door Sandra van Belastingadviseur Eindhoven. Ze gaf me goed advies, was kundig en handelde snel. Ik zou belastingadviseur dan ook aan iedereen aanbevelen.
Léonie van Mook
Léonie van Mook
2023-03-29
Een prettige samenwerking met Roy van der Wiel, zeer accuraat en professioneel in het uitvoeren van zijn juridische ondersteuning, zeker een aanrader.
Ljubomir Stojanovikj
Ljubomir Stojanovikj
2023-03-29
Customer-oriented and knowledgeable party, would recommend. Already during the intake process, André and Sandra took their time to thoroughly assess my (tax) situation. They came well prepared, acted friendly and customer-oriented and showed that they were knowledgeable on the subject. Thanks!
Wouter van Loon
Wouter van Loon
2023-03-14
Ik ben heel erg tevreden met de excellente dienstverlening van dit kantoor. Ze hebben echt alle expertise in huis om je als ondernemer op alle gebieden te helpen. Dat is fijn want je hebt zo maar 1 kantoor nodig. Zowel voor de boekhouding, fiscaal advies, strategisch advies en juridisch advies kun je bij ze terecht. Ze denken ook echt met je mee en zorgen ervoor dat je het optimale voordeel uit je bedrijf haalt. Verder is het een heel leuk team om contact me te hebben. Zowel Jan, Sylvia, Roy en André zijn echte toppers. Dit kantoor is echt een aanrader.
Mike Martens
Mike Martens
2021-09-07
'ZE ZIJN ER GEWOON VOOR JE' Ik ben goed in wat ik deed en wat ik nu nog steeds doe. Alleen hoort de administratie ook bij het ondernemen en daar was ik niet goed in. Dit heeft ertoe geleid dat ik door de belastingdienst de nodige ambsthalve en gewone aanslagen kreeg. Pas toen de ellende zo groot werd en ik pas aktie ging ondernemen was het kalf al 'bijna' verdronken. Na eerst een administratie kantoor in handen genomen te hebben, die ik op dat moment, wel kon en moest betalen werd er richting de bealstingdienst iets ondernomen. Al gauw kwam ik tot de ontdekking dat hun kennis op het gebied van belastingzaken nihil was en alles extern moesten navragen. Toen ik hun niet meer kon betalen omdat er beslag was gelegd door de belastingdienst op mijn facturen van mijn opdrachtgever was ik voor hun ook geen klant meer. Ten einde raad ben ik gaan googelen en gaan bellen en bij zo bij belastingadviseur Einhoven terechtgekomen. Na een kort telefonisch onderhoud met Mr. J.Hartman hebben wij een afspraak gemaakt bij hun op kantoor. Tijdens dit gesprek heb ik alles uit de doeken kunnen doen en heeft Mr. J.Hartman mij het vertrouwen gegeven dat het met de betalingen ook wel goed kwam. Na onze afspraak is hij gelijk aan het werk gegaan richting de belastingdienst met als gevolg dat ik mij nu kan richten op mijn werk, waar ik goed in ben, en dat er nu gericht wordt gewerkt aan een oplossing. Wij zijn er nog lang niet, maar met een kantoor als belastingadviseur Eindhoven ben ik in ieder geval verzekerd dat het niet aan deskundigheid en doortastendheid ontbreekt, maar wat minstens zo belangrijk is dat ik samen met hun 'voorlopig' weer kan ondernemen. Om deze reden kan ik Belastingadviseur Eindhoven van harte aanbevelen. Ralph Ondernemer
Ralph Poetiray
Ralph Poetiray
2021-05-26
Very satisfied with the service. Jan, the tax adivisor was friendly, reliable, quick in answering my questions and gave extensive advice about the income tax return process. As an expat I would like recommend this company.
Brigel Pineti
Brigel Pineti
2021-05-25

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