Transition Compensation in Case of Termination in Delft: Calculation and Entitlement

{"heading":"# Transition Compensation in Case of Termination in Delft: Everything You Need to Know","introduction":"In Delft, with its thriving tech and education sector around TU Delft, the subdistrict court of the District Court of The Hague (Delft location) frequently dissolves employment contracts. In such cases, employees are generally entitled to transition compensation pursuant to Article 7:673 of the Dutch Civil Code (BW). This compensation offsets job loss and supports the transition to roles within the local knowledge economy or at companies such as ASML in the region.","sections":[{"subheading":"## How to Calculate the Transition Compensation?","text":"The compensation amounts to 1/3 of a month's salary per year of service, with a cap of €89,000 (2024) or one annual salary for higher incomes. Partial years are calculated pro rata. Exceptions apply in cases of seriously culpable conduct, such as in Delft’s SMEs where integrity is crucial."},{"subheading":"## When Does the Right Lapse?","text":"No entitlement arises in cases of summary dismissal for urgent cause or if the employee themselves requests dissolution without grounds. In Delft, mutual agreement allows for deviations through a settlement agreement—a popular option among university campus startups."},{"subheading":"## Practical Tips for Delft","text":["Negotiate a settlement agreement in a timely manner with the local subdistrict court.","Employees: Use the UWV calculation tool and consult the Legal Counter Delft.","Employers in Delft’s innovation hub: Allocate a budget for transition compensation.","In disputes, the court may moderate or increase the compensation.","Local legal professionals, such as those at the Legal Consultation Hour TU Delft, offer personalized advice."]}],"wordCount":"(212 words)"}