Ịkwụ ụgwọ mgbanwe na Netherlands: ikike na ngụkọ

In the Netherlands, an employee whose contract ends at the employer’s initiative is entitled to a statutory transition payment (transitievergoeding) of one third of a monthly salary for each year of service, from the first day of employment (Article 7:673 of the Dutch Civil Code, BW). The main exceptions: you resign without serious fault on the employer’s side, you are dismissed for your own seriously culpable conduct, or the employer is declared bankrupt.

In 2026 the payment is capped at EUR 102,000 gross, or one gross annual salary if that is higher. Where the employer acted seriously culpably, the court can award fair compensation (billijke vergoeding) on top, without a cap.

When are you entitled to the transition payment?

You are entitled when the employer ends the contract or does not renew a fixed-term contract. This applies to permanent and fixed-term contracts, and also to dismissal during the probationary period.

The usual routes are dismissal with a permit from the Employee Insurance Agency (UWV), for business-economic reasons or after 104 weeks of illness, and dissolution by the subdistrict court (kantonrechter), for example for poor performance or a damaged working relationship. If your fixed-term contract simply ends and the employer does not offer a new one, the payment is also due. Where working hours are structurally reduced by at least 20%, a proportional payment may be due. See our page on ikike maka ịchụpụ na Netherlands.

If you resign because of seriously culpable conduct by your employer, such as serious harassment or not paying wages, the court can still award the payment and fair compensation. If the employer dismisses you after 104 weeks of illness, it can currently apply to the UWV for compensation of the payment.

When are you not entitled?

The payment is not due if the termination was not the employer’s initiative, or if one of the statutory exceptions applies. The most important ones are listed below.

• You resign, unless the employer acted seriously culpably.
• You are dismissed because of your own seriously culpable conduct, such as theft or fraud. A summary dismissal does not automatically mean this test is met; the court assesses it separately.
• You are dismissed on or after reaching state pension (AOW) age.
• You were under 18 and worked on average no more than 12 hours a week.
• The employer has been declared bankrupt, has been granted a suspension of payments or is in the debt restructuring scheme.

A settlement agreement (vaststellingsovereenkomst) ends the contract by mutual consent, so the statutory payment is not due by law. In practice, it is the starting point of the negotiation, and the agreed amount is often higher.

Kedu ka esi agbakọ ụgwọ mgbanwe ahụ?

You receive one third of your gross monthly salary for each year of service, calculated pro rata for any remaining period. Six months of service therefore gives one sixth of a monthly salary.

The monthly salary includes the base salary, the holiday allowance (usually 8%), fixed end-of-year payments such as a 13th month, and fixed allowances such as shift pay. Variable pay, such as overtime and bonuses, counts at the average of the last three years. Employer pension contributions and expense allowances do not count.

Consecutive contracts with the same employer, or with a successor employer, count together where the gaps between them do not exceed six months. Our article on ntughari akwụ ụgwọ kọwara ngụkọ ahụ nke ọma.

Which costs may the employer deduct?

The employer may deduct only transition costs, such as outplacement or retraining for work elsewhere, and employability costs, such as training that improved your position on the wider labour market. You must have agreed to the deduction in writing and in advance; training needed for your own job can never be deducted.

Kedu oge njedebe dị?

A claim for the transition payment must be filed with the kantonrechter within three months of the day the employment contract ended (Article 7:686a(4) BW). After that, the right is lost.

If the employer pays late, you can claim statutory interest on top. If you signed a settlement agreement, you can revoke your consent in writing within fourteen days without giving reasons; if the agreement does not mention that right, the period is three weeks (Article 7:670b BW).

What should a settlement agreement contain?

A good settlement agreement protects your unemployment benefit (WW) and states the severance amount and payment date. The statutory transition payment is the floor, not the ceiling, of the negotiation.

For the WW benefit from the UWV, the agreement should record that the initiative came from the employer, that there is no urgent cause and that the end date respects the notice period. It should also deal with outstanding holiday days, a non-compete clause, references and a contribution to legal costs.

How is the severance payment taxed?

The transition payment is taxed as wages: the employer withholds payroll tax at the special rate for one-off payments (bijzonder tarief), and the final tax follows from your income tax return.

Because the payment is added to your income for that year, part of it may fall in a higher bracket. The income averaging scheme (middelingsregeling) is no longer available: 2022-2024 was the last averaging period. Placing severance in a standing right (stamrecht) has not been possible since 2014. Have the net effect checked by a tax adviser before you sign.

Gịnị ka ị kwesịrị ịlele dịka onye ọrụ?

Check these points before you accept a dismissal or sign a settlement agreement.

• Is the start date of your employment correct, including earlier contracts and agency periods with the same employer?
• Does the monthly salary in the calculation include holiday allowance, fixed bonuses and the three-year average of variable pay?
• Have you agreed in writing to any deduction of training or outplacement costs?
• Does the settlement agreement protect your WW benefit?
• Are you within the three-month claim period, or the 14-day revocation period of a settlement agreement?

Gịnị ka ị kwesịrị ịlele dịka onye were gị n'ọrụ?

Errors in the calculation or the route can lead to back payments and fair compensation. Check these points.

• Which route applies: UWV permit, kantonrechter or settlement agreement?
• Have you calculated the payment from the correct start date and salary components?
• Can you deduct transition or employability costs, and do you have the employee’s prior written consent?
• After 104 weeks of illness, have you applied to the UWV for compensation in time?
• Is there a CAO with its own arrangement replacing the transition payment?

What can we do for you with a transition payment?

Anyị ndị ọka iwu na-ahụ maka ọrụ assist employees and employers; see also our overview of Iwu ọrụ Dutch.

• We calculate your transition payment based on your payslips and employment history.
• We review a settlement agreement within one working day, including the WW wording.
• We negotiate a severance package above the statutory amount where the facts support it.
• We file a claim with the kantonrechter within the three-month period.
• We assess whether a claim for fair compensation is justified.

Summary

• The transition payment is one third of a monthly salary per year of service, from day one (Article 7:673 BW).
• In 2026 the cap is EUR 102,000 gross, or one annual salary if higher.
• No payment is due if you resign, are dismissed for seriously culpable conduct or your employer goes bankrupt.
• File a claim within three months after the contract ends.
• Fair compensation can be awarded on top where the employer acted seriously culpably.

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