Transition payment compensation only for small employers

What changes?

Do you employ someone you want to dismiss after 2 years’ illness? You usually have to pay a transition payment. From 1 January 2027, not all employers will be eligible for compensation for the costs of this transition payment. The compensation scheme will only apply to small employers (25 employees or less). Employers not classified as small businesses are no longer eligible for compensation.

For whom?

• entrepreneurs who employ staff

When?

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

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.