When are you entitled to transitional pay? (2026)

The law stipulates that your employer must pay the transition payment. at the end of your employment. In practice, this usually happens:

• On your last salary
• Within one month of your last working day
• According to other arrangements in your settlement agreement

• On summary dismissal: no automatic right, unless the court decides otherwise
• In case of bankruptcy: via UWV guarantee scheme (max. €98,000)
• In case of illness: normal payout, see our page on Transition payment during illness

If your employer does not pay the transition allowance on time:

1. Send a written reminder
2. You are entitled to statutory interest from the due date
3. After 14 days, you can involve the cantonal judge.
4. De werkgever kan een boete krijgen van 50% van de transitievergoeding

We'd be happy to tell you more about the payout of your transition payment, including what to do in case of delay. 

Since 2020, you have during your probationary period right to a transitional payment. This was an important change in the law.

It doesn't matter if Probationary period severance pay.

As mentioned, transition compensation now also applies during your probationary period. This applies to all kinds of contracts, including:

• Temporary employment contracts
• Zero-hours contracts
• Fixed-term contracts

For all these contracts, we have a separate page with all the rules and explanations. You can find the information at Redundancy payment for fixed-term contract.

Also temporary staff are entitled to a transitional payment. This applies from the first day of the temporary employment contract. The temporary employment clause makes no difference in this regard – as soon as the contract ends on the initiative of the temporary employment agency, the right to a transitional payment arises.

A common situation is dismissal after long-term illness. After 2 years of illness, your employer may dismiss you, but you are entitled to:

• Full transition payment
• Possible compensation from the UWV for your employer
• Extra protection during reintegration

Read more about transitional allowance after 2 years of illness.

During a reorganisation, you are entitled to a transition payment, but be aware:

• The mirroring principle determines who is being laid off
• Your employer must apply for a dismissal permit from UWV.
• It's possible there's a social plan with additional provisions.

Check out our extensive information about redundancy payment during reorganisation.

It UWV plays an important role in redundancy payments, especially in cases of:

• Dismissal for economic reasons
• Compensation for employers in cases of long-term incapacity for work
• Guarantee scheme in case of bankruptcy
• Assessment of dismissal requests

Previously, different rules applied for small employers (fewer than 25 employees). Since 2020, these differences have been abolished. Everyone now has the same rights, regardless of the size of the company. However, small employers can, under strict conditions, offer a exemption applications.

Upon reaching state pension age, the entitlement to a severance payment lapses. However, on early retirement pension This means that the right to a prepension continues to exist. This is an important difference that many employees are not aware of.

When an employee with a permanent contract is dismissed, they are always entitled to a transition payment, unless they resign themselves or there is a case of gross culpability. However, the procedure does differ:

• Via UWV for economic reasons
• Via subdistrict court in case of dysfunction
• By mutual agreement via a settlement agreement

At a temporary contract that is not extended, you are automatically entitled to a redundancy payment. This also applies if:

• The contract automatically terminates
• No termination takes place
• It concerns a short contract (even 1 month)

Even with flexible contracts, such as on-call contracts, you are entitled to a transition payment. The calculation is based on the average wage over the last 12 months.

It is important to realise that upon dismissal, you are not only entitled to a redundancy payment, but also to other dismissal compensation.

Many people use these terms interchangeably, but there is an important difference.

The severance pay is a broader term that can include various reimbursements. Below, we provide a brief overview:

• Legally required upon dismissal
• Fixed calculation (1/3 monthly salary per year of service)
• Always bound by a maximum, reassessed by the government each year
• Built up from the first working day

• Additional charge on top of the transition payment
• A negotiable amount, depending on the facts and circumstances of your dismissal.
• No legal maximum
• Often with a settlement agreement

For the difference severance pay transition allowance We have an in-depth article with practical examples.

Would you like to know how much redundancy pay you could receive? Then use our tool to calculate your calculate severance pay. This takes into account:

• The reason for your dismissal
• Additional components included in your contract, such as a bonus, 13th month's salary, or a company car
• Calculation based on an estimate of your situation

Like the transition payment, the redundancy payment is also taxable. For information about tax on redundancy pay In fiscal optimisation, we have a separate article.

Curious what's left after tax? Our severance pay gross net The calculator gives you immediate insight into the net amount after deducting taxes.

transition payment is the minimum what you are entitled to. In many cases, you can negotiate a higher compensation. This process is also known in our legal practice as negotiating severance pay.

In the many negotiations we have conducted as employment law specialists, it has always been important to formulate a starting point. Ask yourself what your negotiating position is. You can do this simply by asking yourself the following questions:

• Does my employer want to get rid of me quickly?
• Is there a breakdown in the employment relationship?
• Does my employer have a strong case against me?
• Did my employer make mistakes in the dismissal procedure?
• Is there actually any grounds for dismissal?
• What type of contract do I have? 

For specific tips on negotiating with a severance pay fixed contract Do we have a separate page that addresses all the questions we've posed above?. 

It's good to be aware that we at ontslagrechtjuristen.nl negotiate with your employer on your behalf free of charge. We've found that this often leads to a much better outcome than when employees negotiate for themselves. 

The reason for this is that we have much more experience – experience based on similar cases too. This means we know exactly what we believe your redundancy pay should amount to. 

In addition, as an employee, you often have a relationship with your employer. Our independent position makes it easier to properly shape communication with your employer for negotiations.

1. Know your rights
   Calculate your transition payment exactly
   Check that all procedures have been followed correctly
   Gather evidence of any malpractice
2. Ask for more than the transition payment
   Start with 6-12 months' salary as an opening offer.
   Justify why you deserve more
   Think of non-pecuniary damage
3. Negotiate the total package
   Lease car retention
   Release from work with pay
   Positive testimonial
   Study budget
   Additional severance pay
   And more
4. Always have your settlement agreement checked.
   95% of the agreements can be improved
   A lawyer sees opportunities you miss.
   The costs often outweigh the extra revenue.

Are you wondering if there is maximum severance pay exists? Unlike the transitional compensation, severance pay has no legal maximum. In our legal practice, we regularly see compensation of:

• • 6-12 months' salary at good bargaining power
  • 12-24 months for serious employer errors
  • More than 24 months in exceptional cases

This often amounts to thousands of euros in additional severance pay. An amount many employees don't realise they are entitled to.

transactiemap settlement agreement (VSO) To a transition payment in settlement agreement are there any important points to consider:

• Room for negotiation for higher compensation
• Clear agreements on all aspects
• Final discharge for both parties.
• Flexibility in payment terms

• 14-day cooling-off period is legally required. If there is nothing about this in your settlement agreement, then there is a Cooling-off period of 21 days.
• Check if the transition payment has been calculated correctly
• Be mindful of clauses that restrict your rights, for example, a competition clause
• Check the consequences for your unemployment benefit
• Request a neutral reference (important!)

When drafting a settlement agreement, you can often arrange for more than just the transition payment:

• Exemption from activities
• Pension premium takeover
• Reimbursement of legal fees
• Reference agreements

If you choose to shape the entire resignation process yourself with your employer, we have a few more tips to share.

Directly after your dismissal

1. Ask for written confirmation of your resignation. Make sure this includes the following:
   • The termination date
   • The reason for dismissal
   • Your transition payment amount
2. Check your rights
   • Use our severance pay calculator
   • Check that all components have been included
   • Take note of any collective labour agreement provisions
3. Consider legal advice
   • When in doubt about the calculation
   • If you are presented with a settlement agreement
   • On dismissal without notice

Before you agree

• Take time to think (you have 14 days legally - read up on all your rights around dismissal during this time)
• Have documents checked by a specialist (this can be done free of charge with us)
• Negotiate whenever possible
• Check the consequences. WW benefit

Upon receipt of your payment

• Plan your spending sensible
• Consider further education (tax advantage!)
• Begin direct apply
• Please take into account with tax return

Use the right tools

We have various tools available for an accurate calculation of your transition payment:

• Calculate severance pay for the standard calculation
• Gross net calculator - for the net amount

The transition payment is an important safety net upon dismissal. In 2026, you can expect a maximum of €102,000 or one year's salary, if that is higher. The calculation is simple: 1/3 of a month's salary per year of service. But don't forget that this is just the legal minimum.

With the right knowledge and support, you can often negotiate a better deal. Whether it's a higher salary, better terms, or tax optimisation – there are more possibilities than you might think. The most important thing is to be well-informed and take the right steps.

Whether you are dealing with a temporary contract, redundancy disease, or reorganisation - Every situation has its own points of attention. Take the time to research your rights and seek professional help where necessary.

Are you facing dismissal or do you have questions about your transition payment? Please get in touch for a free consultation. Our specialists have already helped hundreds of people maximise their compensation. As customer Casper put it: "They are immediately very involved in your case. It really felt like a collaboration."

Sign up today free calculator and discover what you are entitled to. Whether you have questions about formula, of height, of concrete examples want to see - we're happy to help you further.