Right to Transition Compensation in Tilburg
For residents of Tilburg, 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, which is particularly relevant in a city like Tilburg with its strong industrial and logistics sectors. Employers in the region are legally obligated to apply this under specific conditions. This article explains the rules, calculations, and local practices, including advice from the Tilburg Legal Helpdesk.
Legal Basis of 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 termination procedures. Introduced through the Work and Security Act (WWZ) on January 1, 2012, and fully effective since July 1, 2015 for ongoing contracts, it replaced the old severance pay and aims to facilitate a smooth transition. For employees in Tilburg with at least two years of continuous service, this right applies upon termination of employment, except when the dismissal is attributable to the employee—such as in cases of voluntary resignation or misconduct. Collective labor agreements (CAOs) in local sectors like textiles or transport may expand these provisions but cannot reduce compensation below the legal minimum.
Conditions for Eligibility in Tilburg
In Tilburg, where many flexible jobs exist in manufacturing, the right to transition compensation does not always apply automatically. Key criteria include:
- Employment Duration: At least two consecutive years with one employer. Shorter periods under successive contracts may still count.
- Reason for Dismissal: Not entirely the employee’s fault, such as in economic dismissals at Tilburg factories; exclusions apply in cases of performance issues without reintegration or voluntary resignation.
- Contract Type and Age: Applies to both permanent and temporary contracts; for fixed-term contracts ending without notice, eligibility requires a total service of at least two years.
- No Offset: Cannot be deducted from other obligations unless otherwise agreed.
In cases of bankruptcy, which occasionally occurs among local SMEs, the UWV (Employee Insurance Agency) will pay the compensation in accordance with Article 7:673(7) BW. For personalized advice, consult the Tilburg Legal Helpdesk.
Calculating Transition Compensation
The compensation in Tilburg is determined based on the daily wage multiplied by a factor per year of service. The steps are:
- Daily Wage: Average daily income over the last three months, including vacation pay and variable earnings, minus 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 in 2023, or the annual salary if lower.
Use the UWV’s compensation calculator for precise results. This builds on our overview Transition Compensation Upon Dismissal – Calculation and Rights, with tips tailored to Tilburg scenarios.
| 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 Tilburg are entitled to receive payment within one month after dismissal, or in installments if agreed. Compensation can be exchanged for outplacement services through the Municipality of Tilburg, but only with mutual consent. Employers must explain the calculation; employees must cooperate with transition plans, especially in cases of illness. In case of disputes, the subdistrict court in Breda (Rechtbank Zeeland-West-Brabant) can be approached within two months of dismissal. The compensation does not affect unemployment benefits (WW).
Local Case Examples from Tilburg
Consider Marie, who worked for five years at a Tilburg textile factory with a monthly salary of €3,000 (daily wage: €111). Upon economic dismissal, she receives 5 × (1/3 × €3,000) = €5,000—enough for temporary support during job applications in the region.
Or Karel, 52, with 15 years at a logistics company earning €4,000 monthly: 10 years × (1/3 × €4,000) = €13,333, plus 5 years × (1/2 × €4,000) = €10,000, totaling €23,333. If he had resigned voluntarily, he would have no claim. Many local flexible chains still build up compensation after two years.
Frequently Asked Questions About Transition Compensation in Tilburg
Am I entitled to transition compensation if I resign voluntarily?
No, unless the employer fails to meet obligations, such as withholding wages. The Tilburg Legal Helpdesk can assess your case.
What if my employer goes bankrupt?
The UWV will pay the compensation under the scheme. Contact the Municipality of Tilburg for additional regional support.