Severance after dismissal — what am I entitled to?
Severance on dismissal (WAB 2020+): (1) Right: on employer-initiated dismissal (not summary dismissal, not employee misconduct), also non-renewal of contract. Applies from day 1 (no waiting period). (2) Formula: 1/3 month salary per worked year. Example: €3,000/mo, 8 yrs = (3000 × 1/3) × 8 = €8,000. Monthly salary = gross fixed + holiday allowance + structural extras (13th month). (3) Max: €104,000 (2026) or yr salary (higher). (4) Long-term sick dismissal: after 2 yrs sick + WW, right to severance (since 2020); employer gets UWV compensation. (5) Settlement agreement: often higher (1-2x monthly per yr) negotiated. Always have FNV/CNV/lawyer review before signing — 14-day reflection period. (6) UWV calculator: free at werk.nl/transitievergoeding. (7) Tax: taxed as wages — but tax-efficient via “30% expat ruling” or split over 2 years. (8) Not paid? Demand in writing + court procedure (3-month limitation).
Step by step
- 1Calculate via UWV toolwerk.nl calculator. Enter salary + years. For negotiation baseline.
- 2Demand pay in writingRegistered letter to employer. Cite art. 7:673 BW. Demand payment in reasonable term.
- 3Review settlement agreementBefore sign: FNV/CNV (free members) or lawyer (legal aid). 14-day reflection statutory.
- 4Court on refusalWithin 3 months of dismissal. Court fee €87 (low income). Often won by employee.
All contacts
Frequently asked questions
Settlement agreement always means severance?
Not automatic. Employer + employee negotiate. Settlement often leads to HIGHER pay (1-2x monthly per yr) because employer avoids UWV permit. Negotiate: keep WW (correct wording).
Severance on summary dismissal?
No — urgent reason (theft, violence, refusal) loses severance. But: can challenge! 80%+ of summary dismissals reversed by court. Contact FNV employment law immediately, max 2-month limitation.
Sources
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