Severance Payment upon Dismissal in Leiden

The severance payment (transitievergoeding) is a statutory compensation for employees who are dismissed by their employer. How does this work and how is it calculated?

What Does the Severance Payment Entail?

This payment supports employees in transitioning to a new job. The amount can be used for training, outplacement programs, or as temporary financial support.

When Am I Entitled to a Severance Payment?

You are entitled to this payment in the following situations:

• The employer terminates your employment contract
• The court dissolves the contract at the employer's request
• A fixed-term contract is not renewed by the employer
• You resign yourself due to seriously culpable conduct by the employer

How Is the Severance Payment Calculated?

The payment amounts to one-third of your gross monthly salary per year of service.

Example Calculation:

• 8 years of service
• Gross monthly salary €3,500
• Severance payment: 8 × (1/3 × €3,500) = €9,333

Maximum Amount 2024

The maximum amount for the severance payment is set at €94,000 gross, or one full year's salary if that is higher.

When Am I Not Entitled to Compensation?

You will not receive a severance payment in these cases:

• Summary dismissal that is justified
• Serious misconduct or negligence on your part
• Resigning without culpable reason on the part of the employer
• Employees under 18 working fewer than 12 hours per week
• Reaching the state pension age (AOW)
• Bankruptcy or suspension of payments by the employer

Payment of the Compensation

The employer must pay the severance payment no later than one month after the end of the employment. In case of delay, the employer is obliged to pay statutory interest on the outstanding amount.

Compensation Options for Employers

In some situations, employers can apply for compensation from the UWV, for example:

• Dismissal after two years of employee illness
• Termination of the business due to retirement or health issues

Practical Advice

1. Always verify the calculation of the compensation
2. Take into account holiday pay and any bonuses in the salary
3. Send a written claim if payment is not made
4. Seek legal assistance in case of disputes, for example via the Legal Counter Leiden at Stationsweg 46

Legal Basis: Article 7:673 of the Dutch Civil Code

Frequently Asked Questions about Severance Payment

What are my rights as an employee in Leiden?

As an employee, you are entitled to a safe workplace, minimum wage, paid leave, and protection against discrimination or unfair treatment.

Can my employer dismiss me without reason?

No, dismissal generally requires approval from the UWV and must be based on valid reasons. Prior warnings are often required.

How many paid vacation days am I entitled to?

You are entitled to at least 20 paid vacation days per year, unless otherwise agreed in your contract. A request for leave must be honored.

What is a collective labor agreement (CAO) and how does it affect me?

A collective labor agreement (CAO) is a set of agreements between employers and trade unions regarding matters such as salary, working hours, and other employment conditions.

What are the rules regarding sick leave?

In case of illness, you must inform your employer immediately. You are entitled to continued payment of wages during the first two years of illness.

Contact and Assistance in Leiden

For legal questions or disputes, you can contact the Legal Counter Leiden (Juridisch Loket Leiden), located at Stationsweg 46. Additionally, the District Court of The Hague, Leiden location, handles cases related to employment contracts and dismissal.