Is a temporary agency worker entitled to a transition payment when his contract ends?
Every employee, including a temporary worker, whose employment contract is terminated by or on behalf of the employer is entitled to a transition payment. The transition payment is intended to compensate for the dismissal and to help with the transition to other work. Since 1 January 2020, every employee whose employment contract ends from the first working day is entitled to a transition payment.
Termination by or on behalf of the employer
This is the case if:
- The employer terminates the employment contract;
- The court dissolves the employment contract at the request of the employer;
- The employer has not extended the employment contract or has entered into a new agreement before the termination of the employment contract that takes effect after an interval of no more than six months;
- At the initiative of the employee to terminate as a result of culpable acts or omissions on the part of the employer.
The employer is the employment agency. The temporary employment agency is therefore obliged to pay the transition payment.
The employer decides not to renew a contract because there is no more work or because he is not satisfied with the employee.
The employment contract ends by using the agency clause.
Amount of the transition payment
From the first day of the employment contract, the employee is entitled to a transition payment in the event of termination as described above. The amount of the compensation depends on the number of months/years worked and the amount of the (average) salary.
When must the compensation be paid?
If the contract has been terminated for or by the employer, the transition payment must be paid within one month after the end of the contract. If the employer does not pay the benefit, an employee has the option of submitting a petition to the subdistrict court within three months of the end date of the contract. (For more information or legal assistance: Juridisch loket)
- Employees who are not yet 18 years old at the end of their employment and who have not worked more than 12 hours per week on average are not entitled to a transition payment.
- Employees who have reached the pension age, they are also not entitled to a transition payment.