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Transition Payment upon Termination of Employment Contract in Rotterdam: Calculation and Conditions

Transition payment (art. 7:673 DCC) after two years of service in Rotterdam: 1/3 monthly salary per year. Conditions, exceptions, and local tips for claiming upon dismissal, specifically for port workers and SMEs.

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Transition Payment upon Termination of Employment Contract in Rotterdam: Calculation and Conditions

Since 2013, dismissed employees in Rotterdam are entitled to a transition payment (art. 7:673 DCC), a compensation for dismissal after two years of service. This applies in cases of termination, dissolution, or non-extension of a fixed-term contract, except in cases of culpable conduct. In the bustling port city of Rotterdam, where many logistics and maritime companies are active, this is crucial for port workers and office staff at large employers such as Port of Rotterdam Authority.

Calculation Method

  • 1/3 monthly salary per year of service.
  • Pro rata for partial year.
  • Including holiday pay and fixed allowances such as shift work allowance, common in Rotterdam shift work.
    Maximum €89,000 (2024) or annual salary.

Conditions for Entitlement

  • Minimum two years of service.
  • Initiative of the employer (except settlement agreement).
  • No entitlement in case of bankruptcy (unemployment benefit compensates), relevant for Rotterdam SMEs in manufacturing.

Exceptions and Appeal

For small employers (<25 employees), the district court scheme applies from 2020. In Rotterdam, you can go to the district court at Mathenesserlaan or via the Rotterdam District Court. The employee may file a claim within six months after termination.

Practical Steps for Rotterdam Residents

Calculate via UWV tool or consult Juridisch Loket Rotterdam (address: Westersingel 4). Negotiate in settlement agreement for higher fair compensation (art. 7:681 DCC), especially under collective labour agreements in the Rotterdam port.

Employers in Rotterdam: reserve budget due to high turnover in logistics. Employees: claim timely at UWV Werkbedrijf Rotterdam. Does not accumulate with other compensations, but does with unemployment benefit. Need help? Call FNV Union Rotterdam or visit the UWV office at Hofpoort. (248 words)

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