{"id":4813,"date":"2026-06-01T06:59:02","date_gmt":"2026-06-01T06:59:02","guid":{"rendered":"https:\/\/www.arbeidsjurist-eindhoven.nl\/kennisbank\/transitievergoeding-bij-faillissement-werkgever\/"},"modified":"2026-06-15T09:56:09","modified_gmt":"2026-06-15T09:56:09","slug":"termination-payment-in-case-of-employers-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.arbeidsjurist-eindhoven.nl\/en\/kennisbank\/transitievergoeding-bij-faillissement-werkgever\/","title":{"rendered":"Redundancy pay: employer insolvency - what can you still claim?"},"content":{"rendered":"

<\/p>\n

Claiming the transition payment in a bankruptcy<\/h2>\n

Is your employer going bankrupt? In many cases you can still claim your transition payment through the UWV. Below you can read what you may still be entitled to claim after a bankruptcy and how to go about it.<\/p>\n

If your employer goes bankrupt, it is a far-reaching situation. One of the first questions you will ask yourself is whether you are still entitled to a transition payment. The honest answer is that the law makes an exception here: in the event of an official bankruptcy you are in principle not entitled to a statutory transition payment. However, that does not mean you are left entirely empty-handed \u2014 there are indeed other claims you can make.<\/p>\n

What the law says about bankruptcy and transition payment<\/h2>\n

Normally, upon dismissal at the employer's initiative you are entitled to a transition payment<\/a>. In 2026 the statutory maximum is \u20ac102,000 gross, or one gross annual salary if your annual income is higher. However, the law makes an explicit exception in Article 7:673c paragraph 1 of the Dutch Civil Code: in the event of bankruptcy, the transition payment is not owed. This also applies in the case of a suspension of payments (surseance van betaling), the situation before a company is officially declared bankrupt.<\/p>\n

The reason is practical in nature: the bankrupt estate generally does not contain sufficient funds to fully compensate both creditors and employees. The legislature has deliberately chosen not to burden the estate further with mandatory severance payments. That may sound unfair, but there are other avenues to protect your financial position as best as possible.<\/p>\n

The role of the administrator (curator) in your dismissal<\/h2>\n

As soon as the court declares the bankruptcy, an administrator (curator) is appointed who takes over the financial management and looks after the interests of all creditors. The administrator has the authority to terminate your employment contract without requiring permission from the UWV. The administrator is also not required to observe prohibitions on dismissal, such as the prohibition on dismissal during illness or pregnancy.<\/p>\n

A maximum notice period of six weeks does apply, regardless of your contractual or statutory notice period. Up until the end date of your employment, the administrator is in principle obliged to continue paying your salary \u2014 although in practice that is far from guaranteed when the estate is empty.<\/p>\n

What you can claim through the UWV<\/h2>\n

Although the transition payment itself falls outside the scope of protection, the UWV does offer protection for a number of other entitlements through the wage guarantee scheme (based on the Unemployment Act (Werkloosheidswet)). This is one of the most concrete steps you can take immediately.<\/p>\n

The UWV wage guarantee scheme covers:<\/p>\n

    \n
  • Arrears of wages over the last thirteen weeks before the bankruptcy;<\/li>\n
  • Unused holiday days and accrued holiday allowance;<\/li>\n
  • Pension accrual for a maximum of one year.<\/li>\n<\/ul>\n

    Important: the transition payment itself is expressly not<\/em> covered by this wage guarantee scheme. UWV will therefore not take over that payment either. Submit your application to UWV after your dismissal has been formally confirmed \u2014 and do so no later than 26 weeks after the day on which you stop receiving wages, as this right lapses after that point.<\/p>\n

    Submitting your claim to the administrator<\/h2>\n

    If you have more arrears of wages than the thirteen weeks covered by UWV, you can submit the remainder as a claim to the administrator. Under insolvency law, wage claims are regarded as preferential claims, meaning they take priority over ordinary creditors. The likelihood of this claim being paid out (in part) from the bankrupt estate is therefore more realistic than it is for unsecured creditors.<\/p>\n

    However, please note: the Tax Authority and other preferential creditors rank above employees in the distribution. In practice, little often remains after the settlement of a bankruptcy, particularly for those lower down the order of priority.<\/p>\n

    Special situations in which entitlements may nonetheless exist<\/h2>\n

    There are circumstances in which you may well be entitled to a payment, even in connection with a bankruptcy. Bear in mind the following situations:<\/p>\n

      \n
    • Business rescue (doorstart):<\/strong> If a new party takes over (part of) the business following bankruptcy, the acquiring party is not obliged to take on all employees. However, if you are taken on, the successor employer is required to count the years of service prior to the bankruptcy when calculating any future transition payment.<\/li>\n
    • Abuse of insolvency law:<\/strong> Employers sometimes attempt to avoid paying the transition payment by means of a strategic bankruptcy. If the bankruptcy is annulled by the court, an entitlement to a transition payment or equitable compensation may nonetheless arise.<\/li>\n
    • Settlement agreement prior to insolvency:<\/strong> Had you already signed a settlement agreement containing an agreed payment? In the event of a subsequent bankruptcy, that payment becomes an unsecured claim against the estate. Payment is then highly uncertain.<\/li>\n<\/ul>\n

      Applying for unemployment benefit (WW) following dismissal due to bankruptcy<\/h2>\n

      Once the liquidator has terminated your contract and the notice period has expired, you can apply for unemployment benefit (WW) from the UWV. Do this no later than one week after the end of the notice period in order not to lose your entitlement. The usual conditions apply to unemployment benefit (WW), but in the case of a dismissal due to bankruptcy you are generally considered to have been dismissed through no fault of your own, which puts you in a strong position.<\/p>\n

      Practical steps when your employer goes bankrupt<\/h2>\n

      Not sure exactly where to start? These are the steps you can take straight away in any event:<\/p>\n

        \n
      • Contact the liquidator as soon as possible and request written confirmation of your dismissal date;<\/li>\n
      • Submit a timely application to the UWV for the wage guarantee scheme (within 26 weeks);<\/li>\n
      • Apply for your unemployment benefit (WW) no later than one week after the end of the notice period;<\/li>\n
      • Submit any arrears of wages above the UWV coverage as a claim with the liquidator;<\/li>\n
      • Keep all correspondence, payslips and contracts carefully;<\/li>\n
      • Have a lawyer assess whether there is any abuse of process or a special circumstance that nevertheless gives rise to an entitlement to compensation.<\/li>\n<\/ul>\n

        Why Employment Lawyer Eindhoven<\/h2>\n

        Having your employer go bankrupt can feel like the ground is disappearing from beneath your feet. In Eindhoven and the Brabant region, we at Arbeidsjurist Eindhoven are on hand to assess your specific situation. Together with you, we will look at which claims are realistic, whether any special circumstances apply and what the best next steps are. Please feel free to contact us without obligation \u2014 an initial conversation costs you nothing, but can give you a great deal of clarity.<\/p>\n

        \n

        Frequently asked questions<\/h2>\n
        \nAm I entitled to a transition payment if my employer goes bankrupt?<\/summary>\n
        \n

        In principle, no. Article 7:673c paragraph 1 of the Dutch Civil Code explicitly provides that no transition payment is owed in the event of bankruptcy. This applies regardless of how long you have been employed or how high your salary is.<\/p>\n<\/div>\n<\/details>\n

        \nWhat does the UWV cover when my employer goes bankrupt?<\/summary>\n
        \n

        Through the wage guarantee scheme, the UWV takes over arrears of wages for the final thirteen weeks before the bankruptcy, as well as unused holiday days, holiday allowance and pension accrual for a maximum of one year. The transition payment is expressly excluded from this.<\/p>\n<\/div>\n<\/details>\n

        \nCan I submit a claim for the transition payment to the liquidator?<\/summary>\n
        \n

        Only if there are special circumstances in your situation (such as a previously signed settlement agreement) can the transition payment be submitted as a claim. In that case it is an unsecured claim, which means that other creditors are paid first. In practice, payment is therefore often uncertain.<\/p>\n<\/div>\n<\/details>\n

        \nWhat happens to my accrued years of service if a post-bankruptcy acquirer takes me on?<\/summary>\n
        \n

        If you are taken on by a post-bankruptcy acquirer following a bankruptcy, that new employer is required, in the event of a later dismissal, to include the years of service accrued before the bankruptcy when calculating your transition payment.<\/p>\n<\/div>\n<\/details>\n

        \nHow quickly must I apply for unemployment benefit (WW) after dismissal due to bankruptcy?<\/summary>\n
        \n

        Apply for unemployment benefit (WW) no later than one week after the end of the notice period with your bankrupt employer. Applying late may result in the loss of benefit days. You submit the application through UWV.<\/p>\n<\/div>\n<\/details>\n<\/section>","protected":false},"excerpt":{"rendered":"

        No redundancy pay in case of bankruptcy? Discover what you *can* claim through UWV, the administrator, and the wage guarantee scheme. Employment lawyer Eindhoven can help.<\/p>","protected":false},"author":2,"featured_media":4714,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transitievergoeding"],"yoast_head":"\nTransitievergoeding claimen bij faillissement<\/title>\n<meta name=\"description\" content=\"Gaat je werkgever failliet? Ontdek wat jij nog kunt claimen aan transitievergoeding en hoe het UWV helpt. 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