If you have worked in the Netherlands and your period of work has ended, whether because a logistics project was cancelled or a temporary contract came to an end, it usually creates enormous financial uncertainty. Most foreign workers who come to work through employment agencies don't know the local employment law and assume that, when their contract ends, they are only entitled to be paid for the days worked and accumulated holiday.
That lack of information costs them thousands of euros.
Dutch employment law has a fundamental compensation concept called the Transitievergoeding (transition payment or severance payment). It is a payment required by law that the employer must pay the worker when the employment relationship ends at the company's initiative.
In this extensive technical and analytical manual we break down how the Transitievergoeding works in 2026 . You will learn the official mathematical formula for calculating how much money you are entitled to from your first day of work, the differences between non-renewal and voluntary resignation, the pay components that must be included in the calculation and the most common manoeuvres that non-transparent agencies use to avoid paying this compensation.
1. What exactly is the Transitievergoeding? (The Day 1 principle)
The Transitievergoeding is the statutory compensation for dismissal or end of contract regulated in the Dutch Civil Code ( Burgerlijk Wetboek ). Its theoretical purpose is twofold:
To provide the worker with a financial cushion while they look for a new job or apply for unemployment benefit ( WW-uitkering ).
To ease the employee's transition in the labour market by funding retraining courses or specialised training.
Evolution of Employment Law in the Netherlands (WAB)
│
├─► Old System: Required a minimum of 2 YEARS of service to receive compensation.
│
└─► Current System (WAB): Entitlement builds up from DAY 1 of work (even during the probation period).
The WAB legislative change
Históricamente, los trabajadores temporales o contratados bajo agencias de empleo no tenían derecho a esta indemnización a menos que superasen los dos años de permanencia ininterrumpida en la misma empresa. Sin embargo, con la entrada en vigor de la Ley de Equilibrio del Mercado Laboral ( Wet Arbeidsmarkt en Balans – WAB ) , el marco jurídico cambió drásticamente a favor del empleado.
Since the WAB was introduced, entitlement to the Transitievergoeding builds up from the first day of actual work . It no longer matters whether you have worked 3 years, 6 months or just 2 weeks within your probation period: if the company decides not to renew your contract or to terminate the employment relationship, it is legally obliged to calculate and pay you the proportional part of your transition payment.
2. When ARE you entitled to the Transitievergoeding and when are you NOT?
To avoid confusion and false expectations, it is essential to analyse the exact legal scenarios in which the employer is obliged to pay and those in which it is exempt from this financial burden.
HOW DID YOUR CONTRACT END?
│
┌────────────────────────────────┴────────────────────────────────┐
▼ ▼
COMPANY's initiative WORKER's initiative
(Non-renewal / Dismissal / Agency clause) (Resignation / Voluntary departure)
│ │
▼ ▼
YOU ARE ENTITLED TO TRANSITIEVERGOEDING YOU ARE NOT ENTITLED
Scenarios where you ARE entitled to payment:
Non-renewal of a temporary contract: You had a 3, 6 or 12-month contract (including Phase A or Phase B agency contracts) and the company decides not to offer you an extension when it expires.
Dismissal with UWV authorisation: The company dismisses you for economic reasons, restructuring or long-term incapacity for work.
Contract termination due to the agency clause ( Uitzendbeding ): You work for an agency on a Phase A contract and the client cancels the work order, leading the agency to end your contract.
Dismissal during the probation period: The company decides to terminate your contract during the first weeks of probation.
Termination due to serious misconduct by the employer: You are forced to terminate the contract because of serious breaches by the company (non-payment of wages, harassment or appalling working conditions).
Scenarios where you are NOT entitled to payment:
Voluntary resignation ( Ontslag nemen ): You decide to leave the job voluntarily to return to your country, change company or abandon the position.
Dismissal for serious misconduct by the worker ( Ernstig verwijtbaar handelen ): Justified disciplinary dismissal due to theft, assault, drunkenness at work or repeated unjustified absences.
Acuerdo mutuo sin cláusula de indemnización: Firmas una terminación por mutuo acuerdo ( Vaststellingsovereenkomst – VSO ) donde renuncias explícitamente a este concepto sin haberlo negociado previamente en el finiquito.
Reaching the statutory retirement age: The contract ends automatically because you have reached the official retirement age in the Netherlands.
Under-18s working reduced hours: Workers under 18 who have worked an average of 12 hours or less per week.
3. The Official Calculation Formula
The Transitievergoeding isn't calculated arbitrarily. Dutch law sets a precise mathematical formula that scales according to the time worked and your total gross salary.
The general rule
For each full year worked, the employee builds up compensation equal to one third ( $1/3$ ) of their gross monthly salary .
For periods of less than a year, or for calculating individual days and months, the formula is pro-rated using the following structure:
$$\text{Transitievergoeding} = \left( \frac{\text{Total Annual Gross Salary}}{3} \right) \times \left( \frac{\text{Total Days Worked}}{365} \right)$$
Calculation Steps
1. Obtain the Gross Monthly Base Salary
2. Add the 8% Holiday Pay (Vakantiegeld)
3. Add the average Night Shift Allowances and Overtime (last 12 months)
4. Apply the proportional formula to the exact days at the company
¿Qué elementos se incluyen dentro del «Salario Bruto»?
This is where most workers lose money by not checking their payslips. The hourly base wage isn't the only element that counts. To calculate the real monthly reference salary, the law requires the following components to be included:
Gross monthly base salary: The fixed amount agreed in the contract or the average of regular hours.
Holiday pay ( Vakantiegeld ): The mandatory 8% that builds up month by month.
Shift and night allowances ( Ploegentoeslag ): The monthly average of allowances received over the last 12 months.
Structural overtime: The average of overtime hours regularly worked over the last year.
Fixed or variable bonuses: Fixed bonuses, commissions or profit sharing set out in the collective agreement.
4. Practical Calculation Example for a Logistics Operative
To understand the financial impact of this compensation, let's analyse a real practical case of a Spanish worker hired by an agency to work at a distribution centre in Tilburg.
Worker details:
Time at the company: 8 months and 15 days (a total of 258 calendar days of contract).
Gross monthly base salary: €2,100.
Holiday pay (8%): €168/month.
Average night shift allowance ( Ploegentoeslag ): €200/month.
Reference Gross Monthly Salary: $2.100 + 168 + 200 = \mathbf{2.468€/month}$ .
Applying the formula:
First, we calculate the equivalent reference Total Annual Gross Salary:
- $$\text{Annual Salary} = 2.468€ \times 12 = 29.616€$$
We apply the statutory one-third division ( $1/3$ of annual salary):
- $$\frac{29.616€}{3} = 9.872€$$
We calculate the exact proportional part for the 258 days worked:
$$\text{Final Transitievergoeding} = 9.872€ \times \left( \frac{258}{365} \right) = \mathbf{6.978,08€ \text{ relative to annual and proportional pro-rating}} \rightarrow \mathbf{698,34€ \text{ net/gross compensation}}$$
Result: For having worked 8 and a half months at the company, this operative is entitled to an additional €698.34 gross in their final settlement, on top of regular hours, untaken holiday and the money accumulated in their Vakantiegeld pot.
5. La «Trampa de la Dimisión Voluntaria» en las ETTs Piratas
In the temporary work sector in the Netherlands, there are non-transparent recruitment agencies that use manipulation strategies to avoid paying the Transitievergoeding. The most widespread manoeuvre is the so-called voluntary resignation document trap .
[End of Season / Shift Cancellation]
│
▼
The agency gives you a document in Spanish or English saying:
- «Firma aquí para tramitar tus billetes de vuelta o cerrar tu ficha»
- │
- ▼
- WARNING! The document is a Voluntary Resignation Letter (Ontslagbrief)
- │
- ▼
CONSEQUENCES:
- – Pierdes el derecho a la Transitievergoeding
- – Pierdes el derecho al paro holandés (WW-uitkering)
- How do they operate and how can you protect yourself?
When a project enters a low-production phase or a season ends, the agency knows that if it notifies you of the non-renewal of your contract, it is obliged to pay you the Transitievergoeding.
Para esquivar este coste, algunos gestores presentan al trabajador extranjero un formulario indicando que es un «trámite rutinario de salida», una «confirmación de regreso a España» o una «renuncia por motivos personales». Si firmas ese documento, estás declarando jurídicamente que la relación laboral termina por tu propia voluntad.
Golden rules for protecting your final settlement:
Never sign a document you don't understand: If the document is written in Dutch or English and you aren't 100% sure of its legal meaning, don't sign it. Demand an official translated version.
If the company doesn't renew you, get it in writing: Always demand formal confirmation by email or letter in which the agency explicitly states that it is the employer who has decided not to extend the contract when it expires ( Niet-verlenging van het contract ).
The difference between end of contract and resignation: Not renewing a contract isn't resigning. If your contract ends on 31 March and the company doesn't offer you a new one, the contract ends at the company's initiative and you are automatically entitled to compensation.
6. Legal Deadlines and Claiming Your Final Settlement ( Eindafrekening )
The Transitievergoeding isn't paid separately in an isolated transfer in the middle of the month. As a general rule, it is included in the final settlement document called the Eindafrekening .
When must the money be paid?
Under Dutch employment law, the company has a maximum of one month ( 1 maand ) after the official end date of the employment contract to issue the Eindafrekening and pay the full balance owed into your bank account.
This closing document must itemise the following:
The salary for the last weeks worked.
The accumulated balance of the 8% holiday pay ( Vakantiegeld ).
Accumulated and untaken holiday days ( Vakantiedagen ).
The amount of the Transitievergoeding.
Legal Limitation Period
│
├─► Contract end date: Day D
├─► Agency's voluntary payment period: Day D + 1 month
└─► MAXIMUM DEADLINE TO CLAIM IN COURT: Day D + 3 months
What should you do if the company doesn't pay the compensation?
If a month has passed since the end of your contract and the agency hasn't paid your Transitievergoeding or has left it out of the Eindafrekening breakdown, you must act quickly. There is an extremely short legal limitation period.
The law states that the worker has a deadline of 3 months from the last day of the contract to file a formal petition ( Verzoekschrift ) with the subdistrict court ( Kantonrechter ). If you let those 3 months pass without taking legal action or sending a formal claim that interrupts the limitation period, you will irreversibly lose the right to claim the money , and the company will be released from the debt.
7. Frequently Asked Questions (FAQ) about the Transitievergoeding
Do I have to pay tax on the money received as Transitievergoeding?
Yes. In the Netherlands, the Transitievergoeding is considered employment income ( Loon uit vroegere dienstbetrekking ) and is subject to tax withholding by the Belastingdienst . The company will automatically apply the corresponding tax bracket when issuing the Eindafrekening . The final amount you receive in your bank account is a net balance. If you use that money directly to fund recognised training or professional development courses, in certain tax scenarios you can claim deductions on your annual tax return.
Can I receive the Transitievergoeding if I find another job immediately?
Yes, absolutely. The Transitievergoeding isn't an unemployment benefit conditional on being out of work. It is compensation for the time of service at the company that is ending. If your contract with an agency ends on Friday, you receive your Transitievergoeding, and the following Monday you start working at a completely different company or agency, the money received is 100% yours and you don't have to pay back a single cent.
Can the agency deduct accommodation costs from my Transitievergoeding?
Not arbitrarily. Deductions for residential accommodation under the SNF quality certification must be made weekly within the limits set by law and can never leave the worker's pay below the guaranteed statutory minimum wage. The transition payment is a protected item. The agency could only offset debts against your final settlement if there are outstanding contractual arrears previously documented and authorised by you in writing, but it can never apply unjustified unilateral deductions to your compensation.
If I signed a termination by mutual agreement (VSO), am I entitled to compensation?
Solo si se negocia explícitamente dentro del acuerdo. Una terminación por mutuo acuerdo ( Vaststellingsovereenkomst – VSO ) es un contrato privado entre el empleado y la empresa para cerrar la relación laboral sin acudir al UWV. En una VSO, la Transitievergoeding no se aplica de forma automática por ley, sino que debe ser negociada como una cláusula de compensación económica. Si vas a firmar una VSO propuesta por la empresa, asegúrate de que el texto incluya un importe igual o superior al que te correspondería por la fórmula oficial de la Transitievergoeding y que preserve tu derecho a solicitar el paro ( WW-uitkering ).
Conclusion: Transparency and rights in your international experience
Emigrating to the Netherlands to build a career in logistics and industry is a highly valuable employment decision that allows you to reach savings levels far higher than in southern European markets. However, the real profitability of this stage doesn't depend only on the hourly rate you earn during your shifts, but on your ability to demand strict compliance with employment law when your service ends.
The Transitievergoeding isn't a favour or a loyalty bonus that the company grants optionally; it is a financial right guaranteed by the Dutch Civil Code from your first day of contract. Knowing the calculation formula, demanding that all your allowances are included in the reference salary and rejecting misleading voluntary resignation manoeuvres is the only strategy for protecting your assets and ensuring every day invested abroad pays off to the full.
At International Job Challenge we are radically different from mass recruitment agencies that take advantage of workers' lack of bureaucratic knowledge. We firmly believe in transparent, legal and ethical management. We make sure all our professionals work under clear contracts with guaranteed minimum hours , accommodation certified under SNF standards and continuous administrative support.
When a period of work with us ends, we issue flawless settlements where every item, including the corresponding Transitievergoeding, is calculated and paid down to the last cent in accordance with Dutch law. Your effort deserves legal respect from the first day until your final payslip is issued.
Secure your rights and work with the peace of mind of being backed by leading professionals in the sector.
👉 Check our job offers in the Netherlands , complete your registration on our recruitment portal and start your international career with full contractual guarantees.
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