In Leiden, with its thriving university and high-tech sector, the transitional compensation upon dismissal is a crucial right, but there are important exceptions where employers do not have to pay. According to Article 7:673 paragraph 7 of the Dutch Civil Code (BW), no compensation is due in the event of dismissal due to seriously culpable conduct, such as theft or fraud – a scenario that can also occur at Leiden companies like LUMC or university institutions.
In the event of bankruptcy or suspension of payment, as recently seen with some startups in the Leiden Bio Science Park, the transitional compensation is often settled via the UWV trustee, but not always paid out in full. For fixed-term contracts that naturally expire without notice – common among PhD candidates or project staff at Leiden University – you have no right to compensation.
For employees older than 50 years, special rules applied before 2020, but since then the standard calculation applies, also in the Leiden labour market. In reorganisations, for example due to budget cuts at the municipality of Leiden, a collective arrangement may replace the individual compensation, provided it is equivalent. Note: in the event of dismissal at your own initiative, such as resignation during illness, the right lapses entirely.
Employers in Leiden may offset the compensation against a settlement agreement, but only by explicit agreement. These rules will not change in 2025, but check the collective labour agreement (cao) of sectors such as education or biotech for local supplements. Unsure about your situation? Contact a lawyer at the Juridisch Loket in Leiden or a local employment law attorney to prevent disadvantage and safeguard your rights in the region.