Transition Compensation

Since July 1, 2015, severance pay has existed. But what exactly is this? And what can you do with it?

A transition allowance is a severance payment you are entitled to if you are fired. This compensation is calculated based on the number of years you have been employed and your gross salary. With this compensation you can pay for things that might help you find a new job faster. Think for example of an outplacement program or training costs. You are entitled to severance pay when you have been employed for two years.

Transition compensation is a maximum of €81,000 or one year's salary, whichever is higher.

You won't get a severance pay if you've been employed for less than two years. In addition, there are other situations where you won't get any (or a partial) severance pay:

• You submit your own resignation;
• When it is a dismissal to which both parties agree;
• You are fired for serious culpability (you committed theft or fraud, for example);
• You are laid off because you are receiving AOW or retiring;

Should your employer not pay severance pay while you are entitled to it? Then you can consult a judge about this. However, this must be done within three months of your dismissal.

You can very easily calculate the amount of your severance pay based on your age, employment (number of years) and your gross monthly income. Here is a handy formula to calculate your severance pay.

"When I got to know my main driving force, I was able to make the informed decision to work as a career counselor at Outplacement op Maat (where you don't have to run out of things to learn) and to go back to college. Is development also your strongest motivation? Or are you looking for physical challenge, adventure or influence? Check it out and see if you're still in the right place." - Career counselor Katja Oostergetel