Dismissal Compensation upon Termination in The Hague: Calculation, Conditions and Rights 2025
The dismissal compensation is a statutory compensation for employees upon termination, regulated in article 7:673 of the Dutch Civil Code. This compensation assists in the transition to new employment. In The Hague, you can go to the District Court of The Hague, Prins Clauslaan 60 or the Juridisch Loket The Hague, Lutherse Burgwal 10 with questions. This article discusses your rights, calculation and conditions for 2025.
What does dismissal compensation entail upon termination?
Since the Work and Security Act (WWZ) of 1 July 2015, employers must pay dismissal compensation upon termination of the contract on their initiative or upon mutual termination. It provides financial support during job search, retraining or training in the The Hague region.
The compensation depends on years of service and salary and can exist alongside other arrangements.
Statutory basis: article 7:673 DCC
Article 7:673 DCC provides:
- Employer pays upon termination on its own initiative
- Also upon settlement agreement, provided the employer took the initiative
- Calculation based on length of service and salary
- Exceptions apply
For 10 years: 1/6 monthly salary per month. From year 11: 1/4 per month, for an accruing compensation.
Conditions for dismissal compensation in The Hague
When is there a right to compensation?
Right exists upon:
- Employment relationship ≥ 24 months
- Termination by employer
- Settlement agreement with employer initiative
- Non-extension of fixed-term contract (sometimes)
Exceptions without compensation
- Probationary period dismissal
- Seriously culpable conduct of employee
- Employee's own initiative
- Pension age
- Death
- Employer's bankruptcy (partially)
- <24 months service
Calculation of dismissal compensation: formula 2025
Basic formula
First 10 years: 1/6 × gross monthly salary × months
From year 11: 1/4 × gross monthly salary × months (from month 121)
Included salary components
- Fixed components
- Holiday allowance
- Regular bonuses/allowances
- 13th month
- Average commission
Maximum 2025
Maximum €94,000 gross or annual salary (if higher).
Calculation examples
Example 1: 5 years service
Monthly salary €3,000, 60 months: 1/6 × €3,000 × 60 = €30,000 gross.
Example 2: 15 years service
Monthly salary €3,000, first 120 mth: 1/6 × €3,000 × 120 = €60,000
From mth 121 (180-120=60 mth): 1/4 × €3,000 × 60 = €45,000
Total: €105,000 (max. €94,000).
For advice in The Hague: District Court of The Hague (Prins Clauslaan 60) or Juridisch Loket (Lutherse Burgwal 10).