Transition Compensation upon Termination of Employment in Utrecht: Calculation and Conditions

# Transition Compensation upon Termination of Employment in Utrecht: Calculation and Conditions Since 2013, employees in Utrecht who are dismissed are entitled to transition compensation (Art. 7:673 of the Dutch Civil Code), a severance payment after two years of service. This applies in cases of termination, dissolution, or non-renewal of a fixed-term contract, except in instances of culpable conduct. In Utrecht, with its thriving sectors such as universities, technology, and government, this is frequently observed in institutions like Utrecht University or municipal jobs. ## Calculation Method - 1/3 of a monthly salary per year of service. - Pro rata for partial years. - Includes holiday allowance and fixed allowances. Maximum of €89,000 (2024) or one annual salary. For salaries in Utrecht’s healthcare or IT sectors, the cap often applies. ## Conditions for Entitlement - Minimum of two years of service. - Employer’s initiative (except in settlement agreements). - No entitlement in case of bankruptcy (unemployment benefits compensate). This may be relevant for Utrecht-based startups. ## Exceptions and Appeals For small employers (fewer than 25 employees), the subdistrict court regulation applies from 2020. In Utrecht, you can turn to the subdistrict court of the Midden-Nederland District Court, Utrecht location. Employees may file a claim within six months of termination; consult a local legal professional via the Legal Counter Utrecht. ## Practical Steps for Utrecht Calculate using the UWV tool. Negotiate a higher equitable compensation in a settlement agreement (Art. 7:681 of the Dutch Civil Code). This is common with Utrecht employers such as hospitals or universities. Visit the UWV office in Utrecht (Aristotelplein) for advice. Employers: reserve budget, particularly in growth sectors. Employees: file a claim in a timely manner through local law firms. This does not accumulate with other compensations but is compatible with unemployment benefits. (248 words)