Transition payment compensation only for small employers
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What changes?
Do you employ someone you want to dismiss after 2 years’ illness? You usually have to pay a transition payment. From 1 July 2026, not all employers will be eligible for compensation for the costs of this transition payment. The compensation scheme will only apply to employers with fewer than 25 workers. Employers with 25 or more employees will no longer receive compensation.
For whom?
- Entrepreneurs who employ staff.
When?
The change in law is expected to enter into effect on 1 July 2026.
Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.
Do you think government rules are unclear?
Do the rules create unnecessary administrative burdens? Or do you know how the rules could make doing business easier? You can report this (anonymously) to the Regulatory Reporting Centre (Meldpunt regelgeving).
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Questions relating to this article?
Please contact the Netherlands Enterprise Agency, RVO