Compensation for transition payment to 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

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.