Working in the Netherlands
Working in the Netherlands
Dutch Labour Law for Managers: Transitional Allowance, Dismissed Employees
Dutch Labour Law. Be prepared and informed.
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Extract
An employee who’s employment was ended by the employer, requested a transitional allowance from the employer. The employment lasted exactly 24 months.
According to Section 7:673 subsection 1 of the Dutch Civil Code an employee has the right to a transitional allowance if the employment relations lasted at least 24 months.
In this Dutch Labour Law case, the employer interpreted Section 7:673 subsection 1 of the Dutch Civil Code as that the employment relation must have lasted longer than 24 moths and the employee is not entitled to a transitional allowance.
Finding
The judge found in the Dutch Labour Law case that the employer misinterpreted the stipulations of Section 7:673 subsection 1 of the Dutch Civil Code. The article stipulates that the employment relation must have lasted at least 24 moths and that the employer is entitled to a transitional allowance.
Good to know
- Until 1 July 2015, the amount of the redundancy package was calculated with the so-called kantonrechtersformula. Transition allowance was introduced for employees who were employed for at least 2 years by the employer for whom the employee was working.
- The transition allowance is calculated as follows: on the first 10 years of employment, the employee receives 1/6 of the monthly salary per 6 months. With an employment relationship that is longer than 10 years, the employee receives 1/4 of the monthly salary per 6 months. Employees older that are 50 years or older and at least 10 years employed by the company will receive 1/2 of the monthly salary for each period of 6 months after you reached the age of 50. The maximum transition allowance is € 77,000 (figure 2017) or 1 annual salary if that is higher. For the calculation, the employment period is rounded down on 6 months.
- In the case of very serious culpable act on the part of the employer, the Court can award the employee an additional compensation.
RECHTBANK LIMBURG
Case: 5664602 AZ VERZ 17-8
Finding: 09-03-2017
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Link to case: http://deeplink.rechtspraak.nl/uitspraak?id=ECLI:NL:RBLIM:2017:2220
Tags: Dutch Labour Law, transitional allowance, Section 7:673 1 of the Dutch Civil Code
Andre Beukes LLM
André Beukes is an EU Management Consultant to international companies doing business in Europe. He provides clients with practical business support that makes a real difference doing business in the EU. “Put simply, I am here to help you meet your challenges. I believe in the importance of doing things correctly, meaning risks are reduced and problems are avoided.”
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