The conditions for a transition payment in 2021

To be eligible for a transition payment, you must have an employment contract.

In addition, your employment contract must have been terminated by your employer or dissolved at the request of your employer. The same applies if, at the initiative of your employer, your temporary employment contract was not continued immediately upon its expiry.

Finally, you may not have entered into a subsequent employment contract within six months, which can be terminated prematurely, before the termination of your employment contract.

If the employer has acted or failed to act seriously culpably

In addition, your employer may owe you a transition payment if you yourself terminate, dissolve or do not continue your employment contract as a result of seriously culpable acts or omissions on the part of your employer.

Also transition compensation for a temporary contract or probationary period !

You may also be entitled to a transition payment in the event of a short-term employment contract, temporary employment contract or dismissal during the probationary period.

Changes in transition payment rules in 2020 as a result of the Wab

With the new legislation regarding the transition payment, you no longer need to have been employed by your employer for at least two years before you can be entitled to the transition payment in the event of dismissal. This was the case before.

Elevated construction abolished

From 1 January 2020, the increased accrual of the transition payment for 10 or more years of service and the additional accrual of transition payment for persons older than 50 years of age will no longer apply.

The level of the transition payment may therefore be lower for employees who have been employed for a long time, compared to previous years.

From when does the old transition payment system no longer apply?

In principle, the new rules regarding the transition payment that came into effect on 1 January 2020 apply directly to all persons who are eligible for a transition payment from 1 January 2020.

If the dismissal took place before 1 January 2020 or if a dismissal procedure was started before 1 January 2020, it is possible that your situation still falls under the old scheme.

Also find out whether in your case you are covered by an even older scheme, such as the scheme from before 1 July 2015.

When are you not entitled to a transition payment?

  1. you have been dismissed as a result of seriously culpable acts or omissions on your part;
  2. you are younger than eighteen and have worked an average of twelve hours a week or less;
  3. the dismissal is the result of reaching the state pension age or because you have reached a different retirement age;
  4. you were dismissed by an employer that is bankrupt, has a moratorium or to which the debt rescheduling scheme for natural persons applies;
  5. you received a new temporary contract before the end of your temporary contract, which commences within six months of the end of your expiring contract and which can be terminated early;
  6. you were offered a similar contract by his employer before the temporary contract ended;
  7. your employer has offered to renew your temporary contract upon its expiry;
  8. you and your employer are separating by mutual consent.

Level of transition payment 2021

In 2021, the transition payment will be equal to one third of the wage per month per year worked and a proportional part thereof for a period that the employment contract has lasted less than one year.

The maximum amount of the transition payment is €84,000 in 2021 or a payment at most equal to the wage over 12 months, if the annual wage is higher than €84,000.