Right to Transition Compensation in The Hague
For residents of The Hague, the right to transition compensation provides essential protection under Dutch employment law in cases of dismissal. This scheme compensates for lost income and supports the transition to new employment, particularly relevant in a dynamic city like The Hague with its government institutions and international organizations. Employers in the region must comply with this obligation under specific conditions. This article outlines the rules, calculations, and local practices, including how to seek assistance through the Juridisch Loket Den Haag (Legal Helpdesk The Hague).
Legal Basis of the Right to Transition Compensation
The transition compensation is governed by the Dutch Civil Code (BW), specifically in Article 7:673 BW, under Book 7, Title 10, Section 10.2, which covers dismissal procedures. Introduced through the Wet Werk en Zekerheid (WWZ – Employment and Security Act) on January 1, 2012, and fully effective since July 1, 2015, it replaced the old dismissal compensation and aims to facilitate a smooth transition. For Hague residents employed by local employers—such as the Municipality of The Hague—this protection applies strictly.
Every employee with at least two years of continuous service with an employer in The Hague or elsewhere is entitled to this compensation upon termination of their contract, except in cases where the dismissal is the employee’s fault (e.g., due to misconduct or voluntary resignation). Collective labor agreements (CAOs) in the region may expand these rights but cannot fall below the legal minimum.
Conditions for Eligibility of Transition Compensation
In The Hague, you do not always automatically qualify for transition compensation. Key criteria include:
- Duration of employment: At least two consecutive years with the same employer. Successive contracts, such as temporary roles in Hague-based sectors, count toward this period.
- Reason for dismissal: The dismissal must not be solely the employee’s fault, such as in cases of performance issues without attempts at reassignment or voluntary resignation.
- Age and contract type: Applies to both permanent and flexible contracts; for fixed-term contracts ending without notice, eligibility depends on whether the employer has formed a chain of contracts.
- No offset against other terms: The compensation cannot be deducted from penalties or non-compete clauses unless explicitly agreed upon.
Note: In cases of bankruptcy or suspension of payments, the UWV (Employee Insurance Agency) will pay the compensation (Article 7:673, paragraph 7, BW). In The Hague, residents can seek advice on this right through the Juridisch Loket Den Haag.
Calculating Transition Compensation
The compensation in The Hague is determined based on the daily wage, multiplied by a factor derived from years of service. The steps are as follows:
- Daily wage: Average daily income over the last three months, including vacation pay and variable components, but excluding overtime.
- Under 50 years old: One-third of the monthly salary per year worked.
- 50 years or older: Half of the monthly salary per year worked.
- Cap: €89,000 (2023) or the annual salary, whichever is lower.
Use the UWV calculator for precise results. This builds on our overview: Transition Compensation Upon Dismissal – Calculation and Rights, with tips for Hague-based employees.
| Years of Service | Compensation per Year (Under 50) | Compensation per Year (50+) |
|---|---|---|
| 1–2 years | 1/3 of monthly salary | 1/3 of monthly salary |
| 3–10 years | 1/3 per year | 1/3 until age 50, then 1/2 |
| More than 10 years | 1/3 per year | 1/2 per year after age 50 |
Rights and Obligations Regarding Transition Compensation
Employees in The Hague are entitled to compensation upon qualifying dismissal; employers must pay within one month or in agreed installments. Compensation can be exchanged for outplacement services, but only with mutual consent.
Employers must explain the calculation; employees must cooperate with transition plans, such as during illness. In case of disputes, the subdistrict court of the District Court of The Hague can be approached within two months of dismissal. The compensation does not affect unemployment benefits (WW) and can be combined with them.
Practical Examples of Transition Compensation
Consider Anna, who worked for five years at a Hague municipality with a gross monthly salary of €3,000 (daily wage: €111 at 27 days/month). Upon economic dismissal, she receives 5 × (1/3 × €3,000) = €5,000—ideal for job applications in the region.
Or Bert, 52, with 15 years of service at a local company earning €4,000/month: First 10 years: 10 × (1/3 × €4,000) = €13,333; last 5 years: 5 × (1/2 × €4,000) = €10,000; total €23,333. No compensation applies if he resigns voluntarily.
In The Hague, flexible contracts often play a role, such as in healthcare or temporary government roles: After two years through chained contracts, you still qualify.
Frequently Asked Questions About Transition Compensation
Am I entitled to transition compensation if I resign voluntarily?
No, unless there are compelling reasons, such as unpaid wages in a Hague-specific context.
What if my employer goes bankrupt?
The UWV will pay the compensation. In The Hague, residents can seek assistance with the application process through the Juridisch Loket Den Haag.