After two years of illness, you are in principle entitled to a transition payment. But the amount, the route and the timing determine whether you receive what you are owed.
The transition payment is regulated in art. 7:673 Dutch Civil Code. Upon dismissal after long-term illness — via UWV, the subdistrict court or a settlement agreement — you as an employee are entitled to this payment. Your employer cannot refuse it by claiming that you are ill or that the dismissal "is not their fault".
The calculation: 1/3 monthly salary per year of service. At a salary of €3,500 gross and 9 years of service, that amounts to €10,500 gross. But note: the transition payment is gross. Depending on your income in the year of payment, you may keep considerably less net.
1/3 gross monthly salary per full year of service. For incomplete years, the calculation is pro rata. At 6 years and 4 months of service: 6.33 × 1/3 monthly salary.
Not just the base salary. Fixed allowances, holiday pay (8%), thirteenth month (1/12), structural overtime compensation and shift allowances all count. An incomplete salary basis leads to a calculation that is too low.
In 2024, the maximum is €94,000 gross (or one annual salary if that is higher). This ceiling is adjusted annually. Always check the current amount.
The transition payment is paid out gross. Depending on your total income that year, 37% to 49.5% may go to tax. With a WIA benefit alongside the payment, the net effect can differ significantly from what you expect.
Seriously culpable conduct: only if you have acted in a seriously culpable manner (art. 7:673 paragraph 7 sub c Dutch Civil Code) can the transition payment lapse. This is a high threshold — being long-term ill is never seriously culpable.
Own resignation: if you resign yourself, you are in principle not entitled. But in cases of seriously culpable conduct by the employer (for example years of neglecting reintegration), this may be different.
Settlement agreement compensation: in a settlement agreement, the employer is not bound by the statutory formula. The amount can be higher or lower. Always have it checked whether the offer at least equals the transition payment.
Employer compensation scheme: employers can apply for compensation from UWV after dismissal due to long-term illness (art. 7:673e Dutch Civil Code). That is their scheme — it does not affect your right, but explains why employers more readily agree after 104 weeks.
Employability costs: costs the employer has incurred for your employability (such as training) may be deducted under certain conditions. Check whether the deduction is justified and was agreed in writing in advance.
Limitation period: the claim for payment of the transition payment expires after 3 months from the end of the employment contract. Do not wait too long to claim.
Since the Xella ruling (Supreme Court, November 2019), the employer is in principle obligated to cooperate in terminating a dormant employment contract with payment of the transition payment. The employer can reclaim the costs through the UWV compensation scheme — so there is no longer any reason to keep the contract dormant.
In practice, some employers still try to avoid Xella. They claim there is a "realistic prospect of reintegration", or they simply do not respond to your request. In those cases, you can send a letter requesting termination with transition payment. If the employer does not respond or refuses, you can go to the subdistrict court.
Note: the compensation the employer receives is capped at the amount that was due when 104 weeks was reached. If the employment contract continues long after that, the transition payment may be higher than the compensation. That is an argument employers use to refuse — but legally it usually does not hold up.
You are entitled to the transition payment when the employer terminates or does not renew the employment — including after long-term illness. But it is not "automatic": if you resign yourself or if the contract simply continues (dormant), you need to take action to enforce your right.
In a settlement agreement, everything is negotiable. In cases of seriously culpable conduct by the employer (e.g. structural failure to provide reintegration), you can also claim a fair compensation payment via the subdistrict court on top of the transition payment. That is a higher threshold, but not uncommon in serious cases.
Then a dormant employment contract arises. You can request your employer in writing to cooperate in termination with transition payment. Under the Xella ruling, the employer is obligated to cooperate, unless there is a justified interest in maintaining the contract.
No. The transition payment is not offset against your WIA benefit. It is a one-time compensation for loss of your job, separate from the income provision that WIA offers.
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