No transition payment due in the event of termination by mutual consent

04/01 2016

Employers are not required to inform an employee about the transition payment if his or her employment contract is terminated by mutual consent.

That ruling was passed by the Subdistrict Court for Midden-Nederland in a case in which an employee claimed a transition payment after his employment contract had been terminated.

That production worker, who had been employed for more than two years (one of the conditions to be eligible for a transition payment), had agreed to termination of his employment contract by means of a settlement agreement without any transition payment.

The employee later applied to the court and claimed a transition payment after all, arguing that good employment practices required that his employer inform him about that payment.

The judge found, among other things, that the Wet werk en zekerheid (Work and Security Act) does not set out any general duty to inform on the grounds of which employers are required to address the transition payment in negotiations on a termination agreement. The judge found that employees who later disagree with the termination agreement can exercise their right to dissolve that agreement within a period of 14 days.

The judgment of the Court for Midden-Nederland of 11 December 2015 can be found here: http://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:RBMNE:2015:8803