Transition Compensation upon Dismissal in Rotterdam: Calculation, Conditions and Rights 2025
The transition compensation is a statutory compensation for employees in Rotterdam who lose their job upon dismissal. Recorded in article 7:673 of the Dutch Civil Code, this scheme assists with the financial transition to new employment. At Rotterdam District Court, Wilhelminaplein 100-125, you can initiate proceedings. The Rotterdam Legal Aid Office, Westblaak 180, offers free advice. This article explains how you are entitled to transition compensation in Rotterdam, the calculation method and conditions.
What does transition compensation entail upon dismissal in Rotterdam?
In Rotterdam, employers must pay transition compensation upon dismissal on their initiative or upon mutual termination. Since the Work and Security Act (WWZ) of 1 July 2015, this supports job seekers in the region with retraining or job change. The compensation depends on years of service and salary and can exist alongside other schemes.
Statutory basis: article 7:673 DCC for Rotterdam
Article 7:673 DCC obliges employers in Rotterdam to pay upon:
- Dismissal by employer
- Settlement agreement with employer initiative
- Calculation based on duration of employment and salary
- Exceptions such as probationary period or bankruptcy
For contracts up to 10 years, 1/6 monthly salary per year applies; thereafter 1/4. At Rotterdam District Court, you can enforce this.
Conditions for transition compensation in Rotterdam
When is there entitlement to transition compensation?
In Rotterdam, entitlement applies upon:
- Employment relationship ≥ 24 months
- Dismissal by employer
- Settlement agreement employer-driven
- Non-extension of fixed-term contract (sometimes)
Exceptions without compensation
- Dismissal during probationary period
- Seriously culpable conduct of employee
- Employee's own initiative
- Retirement at AOW age
- Death or employer's bankruptcy
Consult the Rotterdam Legal Aid Office for your situation.
Calculation of transition compensation Rotterdam 2025
Formula
0-10 years: 1/6 × gross monthly salary × months
From 11th year: 1/4 × gross monthly salary × months
Salary definition
- Fixed components
- Holiday allowance
- Regular bonuses/allowances
- 13th month
- Average commission
Maximum 2025
€94,000 gross or annual salary (whichever is highest).
Calculation examples Rotterdam
Example 1: 5 years of service
Monthly salary €3,000, 60 months: 1/6 × €3,000 × 60 = €30,000 gross.
Example 2: 15 years of service
Monthly salary €3,000, first 120 months: 1/6 × €3,000 × 120 = €60,000
Remaining 60 months: 1/4 × €3,000 × 60 = €45,000
Total: €105,000 (max. €94,000).
Assistance in Rotterdam
For proceedings: Rotterdam District Court, Wilhelminaplein 100-125. Advice: Rotterdam Legal Aid Office, Westblaak 180. Calculate your compensation via official tools and claim your rights.