Transitievergoeding bij Tijdelijk Contract: What You Need to Know

The Dutch government introduced a new law in 2015 that stipulates that employees who have worked for a company for two years or more are entitled to a transitievergoeding (severance pay) when their employment is terminated. This law also applies to employees on a tijdelijk contract (temporary contract). In this article, we will discuss the transitievergoeding bij tijdelijk contract and what you need to know.

What is a tijdelijk contract?

A tijdelijk contract is a temporary contract that is commonly used in the Netherlands for short-term employment. These contracts have a fixed duration that is agreed upon between the employer and the employee. The duration of a tijdelijk contract can range from a few months to a few years.

What is the transitievergoeding bij tijdelijk contract?

When an employee on a tijdelijk contract is terminated, they may be entitled to a transitievergoeding. The transitievergoeding is a severance pay that is meant to compensate the employee for the loss of employment. The amount of the transitievergoeding is based on the length of time the employee has worked for the employer.

How is the transitievergoeding calculated for tijdelijk contract employees?

For employees on a tijdelijk contract, the transitievergoeding is calculated differently than for employees on a permanent contract. The transitievergoeding for tijdelijk contract employees is calculated as follows:

• The employee is entitled to 1/3 of their monthly salary for every year they have worked.

• For partial years of service, the transitievergoeding is calculated pro rata.

• The maximum amount of the transitievergoeding is €84,000 gross, or one year`s salary if that is higher.

Let`s take an example to illustrate this calculation. Suppose an employee has worked for a company for three years on a tijdelijk contract with a monthly salary of €2,500. Their transitievergoeding would be calculated as follows:

• 1/3 of their monthly salary is €833.33.

• Multiply this by the number of years worked: €833.33 x 3 = €2,499.99.

• The transitievergoeding for this employee would be €2,499.99 gross.

It`s important to note that there are some exceptions to the transitievergoeding calculation. For example, if a company is in financial distress, they may be able to pay a lower amount of severance pay. Additionally, if an employee is fired for an intentional act of misconduct, they may not be entitled to a transitievergoeding.

Conclusion

Employees on a tijdelijk contract are entitled to a transitievergoeding if their employment is terminated. The amount of the transitievergoeding is calculated based on their length of service and their monthly salary. It`s important for both employers and employees to be aware of these rules and to ensure that they are following them correctly. If you have any questions or concerns about the transitievergoeding bij tijdelijk contract, it`s a good idea to consult with a legal professional.