Applying for dismissal pay compensation in the event of occupational disability
You will usually be able to end an employee’s contract if they have been unable to work for more than 2 years because of a long-term illness or occupational disability. If this is the case, your employee will be entitled to dismissal pay (‘transitievergoeding’). You might be compensated for this if you meet certain criteria.
What are the criteria for dismissal pay compensation?
- You have ended your employee’s contract because they have not been fit for work for 2 years and the dismissal ban (‘opzegverbod’) has been lifted.
- Your employee is still not fit for work by the time the employment contract ends.
- You have paid the dismissal pay in full and it was a gross amount. If you pay your employee a net amount without paying tax, we will not approve your application.
Please note: If your employee qualifies for an IVA benefit before the standard 2-year period is up, you could still receive compensation for their dismissal pay. This will depend on whether you meet the criteria specified above.
How to apply for dismissal pay compensation
To apply, complete the application form for dismissal pay compensation ('Aanvraag compensatie transitievergoeding bij langdurige arbeidsongeschiktheid'). You will need to log in to the employer portal with your EH3 level eHerkenning account to do this.
Make sure you submit your application within 6 months of having paid the dismissal pay.
What else you will need to submit along with your form
- the employment contract
- a document proving the employment contract ended (such as a notice of termination, a signed settlement agreement or a court ruling)
- a document specifying how the dismissal pay was calculated
- a payslip issued when the employee had been ill for less than 1 year
- a payslip issued after the dismissal ban had been lifted
- a document proving the dismissal pay and tax were paid in full (including the date on which this payment was made)
Decision
You will receive a decision about your application in the employer portal within 8 weeks. If we need additional information from you, this could take longer.
If you are entitled to compensation, we will transfer the money to your account within 5 working days of you receiving our decision.