Transitievergoeding
Transition payment
The transition payment is a statutory payment that an employer is required to make to an employee upon termination of the employment contract.
The transition payment is a financial compensation payable by the employer upon termination of an employment contract, provided the employee has been in service for at least two years. This arrangement was introduced by the Work and Security Act and serves to support the employee in transitioning to new employment.
Its amount equals one third of the monthly salary for each year of service, subject to a statutory maximum that is adjusted annually. The payment is due both in cases of dismissal and termination by mutual consent, unless the employee has engaged in serious culpable conduct.
In practice, the transition payment frequently forms part of a settlement agreement and may be subject to negotiations between the parties.
“After eight years of employment, the employee received a transition payment amounting to two and a half months’ salary upon termination of his employment contract.”
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