Dismissal and Transition Payment (Transitievergoeding)
If dismissed after 2+ years in the Netherlands, you are entitled to a transition payment of roughly 1/3 month's salary per year of service (WWZ formula). Object within 6 weeks if your employer underpays or dismisses without UWV permission — the kantonrechter can award the full amount plus statutory interest.
The transitievergoeding is one of the most valuable claims expats leave on the table. This guide explains the calculation, common employer tactics to reduce it, and how to enforce payment.
01Guidance
Legal basis for transition payment
Article 7:673 BW (introduced via the WWZ) grants employees a transition payment when the employer terminates the contract (with exceptions for serious culpable conduct by the employee). The amount is calculated using a statutory formula based on monthly salary and years of service. Employers need UWV dismissal permission or consent for most dismissals after 2 years — termination without it can be annulled by the court.
02Transition payment calculation (2026)
Transition payment calculation (2026)
| Item | Detail |
|---|---|
| Years 1–10 | 1/3 monthly salary × years |
| Years 10+ | 1/2 monthly salary × years above 10 |
| Maximum (2026) | €94,000 or 1 year's salary if higher |
| UWV objection deadline | 6 weeks from dismissal letter |
| Court claim deadline | Often 6 weeks (check dismissal type) |
| Cumulative fixed-term limit | 3 contracts / 3 years → indefinite |
03Procedure
Steps after dismissal
- Step 1: Verify the dismissal procedureCheck whether UWV consent or court dissolution was obtained. Invalid procedure can void the dismissal.
- Step 2: Calculate your statutory paymentUse the official formula on business.gov.nl or uwv.nl. Include regular allowances in salary base.
- Step 3: Compare with employer's offerSettlement agreements (vaststellingsovereenkomst) often trade payment for waiver of claims — never sign under pressure.
- Step 4: Object or litigateSend a formal objection within 6 weeks. If unresolved, the kantonrechter handles employment disputes.
04Template
Template letter disputing transition payment
Geachte heer/mevrouw, Naar aanleiding van mijn ontslag per [datum] betwist ik de aangeboden transitievergoeding van €[bedrag]. Op grond van artikel 7:673 BW bereken ik mijn wettelijke transitievergoeding op €[bedrag], gebaseerd op [X] dienstjaren en een maandsalaris van €[bedrag]. Ik verzoek u het verschil van €[bedrag] binnen 14 dagen over te maken. Bij uitblijven behoud ik mij het recht voor een procedure bij de kantonrechter te starten. Hoogachtend, [Naam]
05Escalation
What if your employer disputes the calculation?
Employers frequently exclude holiday allowance, bonuses, or prior fixed-term contracts from the calculation. An employment lawyer can reconstruct your salary base using payslips and challenge improper cumulative-contract breaks. If dismissal also threatens your residence permit, coordinate employment and immigration lawyers immediately.
06Guidance
Common employer tactics to reduce transition payment
Employers exclude holiday allowance (8%), irregular bonuses, and car allowance from 'salary' base — courts often include regular fixed allowances. Breaking fixed-term chains with short gaps to avoid indefinite contract is unlawful — prior contracts count. Performance dismissal (disfunctioneren) requires documented improvement plan (PIP) — skipping PIP weakens employer case. Redundancy (bedrijfseconomisch) requires UWV approval and objective criteria — selecting only expats may indicate discrimination. Settlement offers below statutory minimum are starting points, not final. Calculate gross vs net — transition payment is gross; negotiate employer pays tax gross-up if offered net figure. Record all verbal promises — follow up email: 'To confirm our conversation…'. If threatened with permit cancellation, separate employment negotiation from immigration panic decisions.
07Frequently asked questions