Transition Payment upon Termination of Employment Contract in Leiden: Calculation and Conditions

# Transition Payment upon Termination of Employment Contract in Leiden: Calculation and Conditions Since 2013, dismissed employees in Leiden are entitled to a transition payment (art. 7:673 DCC), a compensation for dismissal after two years of service. This applies in cases of termination, dissolution or non-extension of a fixed-term contract, except in cases of culpable conduct. In the academic and university environment of Leiden, such as at Leiden University or the LUMC, many collective labour agreements provide additional arrangements for researchers and healthcare personnel. ## Calculation Method - 1/3 monthly salary per year of service. - Pro rata for partial year. - Including holiday allowance and fixed supplements, such as irregular hours allowance for shift work in Leiden hospitals. Maximum €89,000 (2024) or annual salary. ## Conditions for Entitlement - Minimum two years of service. - Initiative of the employer (except settlement agreement). - No entitlement in case of bankruptcy (unemployment benefit compensates), relevant for vulnerable Leiden SMEs in the city centre. ## Exceptions and Appeal For small employers (<25 employees), such as family businesses around Breestraat, the sub-district court arrangement applies from 2020. The employee may file a claim within six months after termination at the sub-district court in Leiden (Pieterskerkplein 37). ## Practical Steps for Leiden Calculate via UWV tool or consult Juridisch Loket Leiden (Haarlemmerstraat 129). Negotiate in the settlement agreement for a higher fair compensation (art. 7:681 DCC), especially in reorganisations in the Leiden high-tech sector. Employers: reserve budget taking into account local collective labour agreements. Employees: claim in time at the District Court of The Hague, Leiden branch. Does not accumulate with other compensations, but does with unemployment benefit. (218 words)