Your rights upon dismissal
When you are dismissed, you have various rights as an employee. Many employees are not aware that, in addition to the transition payment, they may also be entitled to other compensations and entitlements. In this article, we provide a complete overview of what you are entitled to upon dismissal.
The transition payment
The transition payment is the statutory basic compensation upon dismissal, regulated in Article 7:673 of the Dutch Civil Code (BW). Every employee is entitled to this from the first day of employment when the initiative for dismissal lies with the employer. The compensation amounts to one-third of the monthly salary per year of service and is capped at EUR 94,000 gross in 2024, or an annual salary if that is higher. The transition payment is intended as compensation for the loss of your job and to facilitate the transition to new employment.
The fair compensation
In addition to the transition payment, you may in certain cases claim fair compensation pursuant to Article 7:681 of the Dutch Civil Code (BW). This applies when the employer has acted in a seriously culpable manner. Consider situations such as dismissal without a valid reason, discrimination, structural bullying, or deliberately creating an unworkable situation. Fair compensation has no statutory maximum and can be significantly higher than the transition payment.
The fixed compensation
When the employer terminates the employment contract without observing the correct notice period, you are entitled to fixed compensation pursuant to Article 7:672 paragraph 11 of the Dutch Civil Code (BW). This compensation is equal to the salary for the period that the employment relationship would have continued with regular notice.
Unemployment benefit
After dismissal, you may be eligible for an unemployment benefit (WW) through the UWV. To qualify, you must meet the weeks requirement and the years requirement. The unemployment benefit amounts to 75% of the last earned salary (capped) for the first two months and 70% thereafter. The duration of the benefit depends on your employment history, with a maximum of 24 months.
Additional rights in a settlement agreement
In the case of dismissal through a settlement agreement, you can negotiate more than just the transition payment. Consider a higher severance payment, exemption from work with continued salary, reimbursement of outplacement costs, deletion or limitation of a non-compete clause, a positive reference letter, and reimbursement of legal costs. An experienced employment law lawyer can negotiate these points on your behalf.
Arslan Advocaten is ready to assist you
At Arslan Advocaten, we ensure that you receive what you are entitled to. We assess your dismissal situation, calculate all compensations you may claim, and negotiate on your behalf with your employer. Do not hesitate to contact us for a no-obligation advisory consultation.