Compensation for transition payment to end

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. These compensation schemes will end on 1 January 2027. From that date, 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.

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

When?

The change in law is expected to take effect on 1 January 2027.

Please note: The effective date of this measure is not yet final. The proposal must first be approved by the Lower and Upper Houses of Parliament (Tweede en Eerste Kamer). After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch), the law can take effect.