Compensation for transition payment to end
There is a plan but the government has yet to decide
The government has proposed a change in rules. The proposal will also be debated in the Lower and Upper Houses of Parliament. The proposal may therefore still change, but it can be helpful to be aware of this in advance.
For whom?
- employers with staff
- employers who dismiss an employee after long-term illness (incapacity for work)
- employers who end their business due to retirement or death
What changes?
Do you employ staff in the Netherlands? And do you pay a transition payment when dismissing an employee? Then you may face some changes.
Currently employers can, in certain situations, receive compensation for transition payments they have made. From 1 January 2028 these compensation schemes will end. The original plan was to end these compensation schemes on 1 January 2027. The government has postponed this by 1 year. From then, you will no longer receive compensation if you dismiss an employee who has been ill for more than 2 years. The compensation scheme for business closure due to retirement or the death of the employer will also end.
When?
The change in law is expected to take effect on 1 January 2028.