What are the exceptions to the transition compensation?

Sometimes, you do not have to pay transition compensation or you have to pay a lower or higher transition compensation amount:

No transition compensation

You need not pay a transition compensation if:

• The employee is under 18 and works less than 12 hours per week
• The employment contract ends upon or after reaching the pensionable age
• The end of the employment contract is due to serious culpable acts of the employee (mostly in the event of dismissal with immediate effect)
• You have been declared bankrupt, granted moratorium or may participate in a debt management scheme for natural persons
• The collective agreement contains an equivalent provision for transition compensation; or
• Your employee has been given a new temporary contract before his or her temporary contract has ended, and the new contract will start within 6 months after the end of the previous employment contract

Transition compensation scheme

You can apply for compensation from the UWV for transition compensation paid in the event of dismissal of an employee who has been ill for more than two years.