Collective labour agreements (CAOs) often provide supplementary dismissal compensations in addition to the statutory transition payment. Article 7:673 paragraph 12 of the Dutch Civil Code (BW) stipulates that CAO provisions take precedence if they are more favourable to the employee. In the metal CAO, for example, an 'old' compensation of 1 month's salary per year of service applies, cumulatively with the transition payment.
Key sectors: Construction (Bouwcao: extra on top of transition), Healthcare (up to 1.5 months per year) and Education (specific transition pot). Check your CAO via the CAO finder on cao.nl. For VSOs, the total arrangement must not be less favourable than the transition payment plus any equitable compensation.
In 2025, CAOs remain flexible, but the Act on Compensation for Transition Payments encourages employers to form pots for long-term employment relationships. Advantage: higher payouts and sometimes outplacement. Disadvantage: more complex calculations.
Tip: Seek trade union support for negotiations. In case of dispute, the sub-district court decides based on the CAO text.