Billijke vergoeding
Fair compensation
Fair compensation is an additional award of damages that a court may grant to an employee upon dismissal, in addition to the transition compensation, where the dismissal is seriously culpable on the part of the employer.
The fair compensation is an instrument of Dutch employment law (Article 7:681 of the Dutch Civil Code) that enables the court to award an employee compensation for seriously culpable conduct by the employer upon termination of the employment contract. It allows the court to determine an appropriate amount that reflects the specific circumstances of the case.
This remedy is relevant because it protects employees against careless or abusive dismissal practices and may supplement or exceed the statutory transition payment. In practice, the amount is determined by factors such as the length of service, the consequences for the employee, the degree of culpability and any earnings from alternative employment.
The fair compensation contributes to a balanced system of dismissal protection and deters employers from acting unlawfully.
“The subdistrict court judge awarded the employee fair compensation of €25,000, on the grounds that the employer had proceeded with the dismissal without reasonable cause and in a negligent manner.”
Related terms
Related articles
Need legal advice?
Schedule a free consultation with one of our specialists