New Judgment in the Netherlands on Partial Transition Fee
By Jeffrey L. Kenens, TeekensKarstens
On 14 September 2018, the Dutch Supreme Court ruled a groundbreaking judgment with farreaching financial consequences. The Supreme Court considered that a worker who was partially dismissed because of long-term disability is entitled to a partial transition fee.
The statutory transition fee has been created to serve as severance compensation for the dismissal of the employee and to facilitate his search for another job. Currently, the law did not provide an employee with statutory rights to a partial transition fee in case of a reduction in working hours only.
The Supreme Court nonetheless ruled that the ability to claim a partial transition must also be accepted in situations where a substantial and structural reduction of the working time of the employee is necessary. According to the Supreme Court, a substantial reduction implies a reduction in working time of at least twenty percent.
The ratio behind this ruling is that a reduction of working time as a result of business economic reasons or permanent partial incapacity to work, should not be borne by the employee.
It is important for employers to remember that there is a three-month limitation period for claiming a transition fee. If this period has expired, the claim has automatically run out.
For further questions regarding this topic, please feel free to contact Jeffrey Kenens.
Jeffrey L. KenensTeekensKarstens advocaten notarissen, Leiden, The Netherlands
Jeffrey Kenens is a Partner at TK and part of the international Corporate Employment Law team.
TeekensKarstens advocaten notarissen (TK) is a full service Dutch law firm with extensive experience in the field of international law. TK has established specific international teams to provide international clients with tailor-made services and information.
Published: November 2018 l Photo: ©ahavelaar - stock.adobe.com