Although the transition payment is a standard right upon dismissal, there are various exceptions in which employers are not obliged to pay it. According to Article 7:673 paragraph 7 of the Dutch Civil Code (BW), no payment is due in the event of dismissal due to seriously culpable conduct on the part of the employee, such as theft or fraud. In cases of bankruptcy or suspension of payments, the transition payment is often handled via the UWV trustee, but not always paid in full.
For fixed-term contracts that expire without notice, there is no entitlement to a transition payment. For employees older than 50 years, special rules applied before 2020, but since then the standard calculation applies. In reorganisations, a collective arrangement may replace the individual payment, provided it is equivalent. Important: in the event of dismissal at the employee's own initiative, such as resignation during illness, the right lapses.
Employers may also offset the payment against a settlement agreement, but only if this has been explicitly agreed. In 2025, these exceptions remain the same, but always check the collective labour agreement (cao) for additional arrangements. Unsure? Consult a lawyer to determine your position and prevent being unfairly disadvantaged.