In Tilburg, where many companies in the textile and manufacturing industries are active, the transition compensation is a crucial right in cases of dismissal, but important exceptions apply. According to Article 7:673(7) of the Dutch Civil Code (BW), an employer in Tilburg is not required to pay compensation in cases of dismissal due to seriously culpable conduct by the employee, such as theft or fraud. In the event of bankruptcy or suspension of payments, which unfortunately occurs among local SMEs, the transition compensation is often handled through the UWV trustee, but it is not always paid in full.
For fixed-term contracts that expire naturally without notice – common in the hospitality and logistics sectors around Tilburg – you are not entitled to transition compensation. For employees over the age of 50, special rules applied in the Central Brabant region before 2020, but since then, the standard calculation has been in effect. In the case of reorganizations, such as those recently seen at Tilburg production companies, a collective arrangement through the UWV Employee Insurance Agency may replace the individual compensation, provided it is equivalent. Note: if you resign on your own initiative, for example, by giving notice during illness, the right to compensation lapses entirely.
Employers in Tilburg may offset the compensation against a settlement agreement, but only if this has been explicitly agreed upon in consultation with a local legal professional. In 2025, these exceptions will remain unchanged, but always check the collective labour agreement (CAO) for your sector, such as in the Brabant metal or healthcare industries, for additional provisions. Are you unsure about your situation? Contact an employment law attorney in Tilburg, for example, via the Legal Counter on Heuvelstraat, to assess your position and prevent unjust disadvantage.