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Do you know? For the first ten years of service, you are entitled to a third monthly salary per year of service.

From the tenth year of service, the allowance is half a month’s salary per year of service.

The legislator has set a maximum for the amount of the transition payment. The maximum transition payment is currently € 77,000 gross. If your annual salary is higher than € 77,000 gross, the maximum transition payment is equal to your annual salary.

If you are 50 years of age or older upon dismissal and the employment contract has lasted at least 10 years, the compensation for the years of service after reaching the age of 50 is 1 month’s salary per year of service **.

** This higher allowance for 50+ employees applies until January 1, 2020 and does not apply to smaller employers employing fewer than 25 employees.

I want to collect a transition payment. Could my employer be covered by the “Special Scheme for Small Employers”?

The government has made a distinction between small and large employers. For employers who employ an average of less than 25 employees, a special arrangement applies when determining the amount of the transition payment. What does that mean? For employers, the years of service before 1 May 2013 do not count in the calculation of the transition payment in the event of dismissal for economic reasons prompted by the employer’s poor financial situation.

This is the case if there are:

a negative net result for three years;

negative equity.

the value of the current assets is less than the liabilities

You want to collect the transition payment. But there is a social plan in place. What now?

A social plan is a scheme in which the employer describes and substantiates why he is going to reorganize, what the personnel consequences are and what (financial) compensation employees will receive who are dismissed as a result of the reorganization. In addition to a possible transition payment, a social plan may also include provisions to guide you to another job as soon as possible. Consider, for example, an outplacement process or training costs.

Does an employer always have to pay the full amount of the transition payment? Or could it also be less?

It can also be less. Sometimes an employer has had to incur costs for the employability, as it is called, of the employee. These are costs incurred to prevent or shorten unemployment, for example (such as outplacement). The employer can ask the court to deduct these incurred costs from the transition payment to be paid.