Right to Transition Compensation for Rotterdam Employees
In Rotterdam, with its bustling port and diverse economy, the right to transition compensation provides crucial protection for employees facing dismissal. This Dutch labor law regulation compensates for lost income and supports the transition to new employment—particularly relevant in a city with a high prevalence of flexible work arrangements. Employers in Rotterdam must comply with specific conditions. This article outlines the rules, calculations, and local practices, along with practical tips for residents of the Maasstad.
Legal Basis of Transition Compensation in Rotterdam
The transition compensation is governed by the Dutch Civil Code (BW), specifically in Article 7:673 BW, under Book 7, Title 10, Section 10.2, which regulates dismissal procedures. Introduced via the Wet Werk en Zekerheid (WWZ) (Employment and Security Act) from January 1, 2012, and fully effective since July 1, 2015, it replaced the old severance pay and aims to facilitate a smoother transition. For Rotterdam residents with long-term employment in local companies—such as in logistics—this is particularly essential.
The law guarantees employees with at least two years of continuous service a compensation payment upon dismissal, unless the dismissal is attributable to the employee (e.g., voluntary resignation or misconduct). Collective labor agreements (CAOs) in Rotterdam’s sectors may expand these rights but cannot reduce them below the legal minimum.
Conditions for Transition Compensation in the Rotterdam Region
Transition compensation is not automatically granted. Key criteria for Rotterdam employees include:
- Employment Duration: At least two years of continuous service with the same employer. Shorter contracts may count toward a chain of contracts, common in Rotterdam’s flexible labor market.
- Reason for Dismissal: Must not be entirely the employee’s fault, such as in economic dismissals in the port or performance-related terminations without reintegration.
- Contract Type and Age: Applies to both permanent and temporary contracts; for expiring flexible contracts without notice, only if the total duration exceeds two years.
- No Offset: Cannot be deducted from other obligations unless otherwise agreed.
**Note:** In the event of an employer’s bankruptcy in Rotterdam (e.g., in shipping), the Dutch Employee Insurance Agency (UWV) will pay the compensation (per Article 7:673, paragraph 7, BW). For personalized advice, consult the Juridisch Loket Rotterdam.
Calculating Transition Compensation for Rotterdam Residents
The compensation is based on the daily wage, multiplied by a factor per year of service. The steps are:
- Daily Wage: Average daily income over three months, including vacation pay and allowances, but excluding overtime—relevant for shift workers in Rotterdam.
- Under 50 Years Old: 1/3 of the monthly salary per full year of service.
- 50 Years or Older: 1/2 of the monthly salary per full year of service.
- Cap: €89,000 (2023) or the annual salary, whichever is lower.
Use the UWV calculator for precise results. This builds on our overview Transition Compensation Upon Dismissal – Calculation and Rights, with additional focus on Rotterdam’s CAOs.
| Years of Service | Compensation per Year (Under 50) | Compensation per Year (50+) |
|---|---|---|
| 1–2 years | 1/3 of monthly salary | 1/3 of monthly salary |
| 3–10 years | 1/3 per year | 1/3 until age 50, then 1/2 |
| More than 10 years | 1/3 per year | 1/2 per year after age 50 |
Rights and Obligations Regarding Transition Compensation in Rotterdam
Employees in Rotterdam are entitled to receive the compensation within one month after dismissal, or in installments if agreed. You may opt for outplacement services, but only with mutual consent. The Municipality of Rotterdam offers support for job seekers.
Employers must explain the calculation; employees must cooperate with transition plans, especially in cases of illness. In case of disputes, escalate to the Rotterdam District Court within two months. The compensation does not affect your unemployment benefits (WW rights).
Practical Examples of Transition Compensation in Rotterdam
Take Anna, who worked 5 years in Rotterdam’s port with a €3,000 monthly salary (daily wage: €111). Upon economic dismissal: 5 × (1/3 × €3,000) = €5,000—enough for temporary support during job applications in the region.
Bert, 52, with 15 years at a local company earning €4,000 monthly: First 10 years: 10 × (1/3 × €4,000) = €13,333; last 5 years: 5 × (1/2 × €4,000) = €10,000. Total: €23,333. **Note:** No right if he resigned voluntarily.
In Rotterdam’s flexible sectors (e.g., construction), a chain of contracts counts toward the two-year threshold, even without formal notice.
Frequently Asked Questions About Transition Compensation for Rotterdam Employees
Do I qualify for transition compensation if I resign voluntarily?
No, unless the employer breaches obligations (e.g., unpaid wages). Check with Juridisch Loket Rotterdam for exceptions.
What if my employer goes bankrupt?
The UWV will pay the compensation. Rotterdam residents: Register with the municipality for additional support via Werkplein Rotterdam.