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As soon as the WAB comes into effect, all employees In principle right to transition compensation in case of involuntary dismissal. In the new law, the transition payment is due 'from the first day'. The reference period therefore disappears. Even if an involuntary dismissal takes place during the probationary period, a transition payment is in principle owed. The exceptions will continue to apply.

The amount of the transition payment that your employer pays upon dismissal is determined on the basis of 2 components: your monthly salary and the number of half years of service. The reimbursement is a maximum of € 81.000 gross. Or, if your annual salary is higher than € 81.000, a maximum of 1 gross annual salary. The calculation of the transition allowance will change from 1 January 2020.

The current Work and Security Act

Under the current Work and Security Act (WWZ), which applies from 1 July 2015, employees with an employment contract of two years or more In principle right to a transition allowance if their employment contract is terminated involuntarily or is not continued. These two years are referred to as the reference period. Note: there are some exceptions. 

For example, no compensation is due if the employee has acted seriously culpable or has been seriously culpable negligent. Also, no compensation is due if the employee is not yet 18 years old and does not work more than 12 hours a week.

Termination of employment often takes several weeks. It is therefore possible that a termination was started before 1 January 2020, but that the employment actually only ends after 1 January 2020. To make clear which calculation should be chosen in that case, are rules convenience

Calculation of the transition payment from 2020

According to Ruben Groeneveld, of Beverwijk Van Gilst Advocaten, the transition compensation is now calculated as follows. Per each half year of service in the first 10 years of the employment contract, the employee receives 1/6e gross monthly salary. For every half year of service that he has worked after those 10 years, he gets 1/4e monthly salary. Employees aged 50 and older, who work in a company with 25 or more employees, are 1/2e receive monthly salary per half year of service in the period after the first 10 years worked.

Under the WAB, the calculation and thus the level of the transition payment will change. The accrual of the transition allowance will be 1/3 under the WABe of the monthly salary for each worked year. The special schemes, ie the higher accrual for an employment contract of ten years or longer, and the special scheme for employees aged 50 and older, will be canceled. The same scheme applies to everyone from 1 January.

Transition fee in installments

Is your employer unable to pay the compensation in one go because this would damage your business operations? Then the employer can pay in installments, spread over a maximum of 1 months. Does your employer pay the transition payment in installments? In that case, he will always owe statutory interest from 1 month after the end of the contract. The interest is calculated on that part of the transition payment that has not yet been paid.

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