Transition allowance and temporary employment contract and secondment agreement (temporary agency contract of employment)
Our specialized lawyer in employment law in Amsterdam gives legal advice on the transition fee / compensation after the end of a temporary employment contract (agency work employment contract) for temporary agency workers (temps).
An important part of employment law is the transition allowance, a form of severance payment. This compensation is laid down in law, and is applicable when an employee has been employed and is no longer working against his will.
Entitlement to a transition payment after the end of the temporary employment contract
When are you, as a temporary worker in or outside Amsterdam, entitled to a transition payment in the event of dismissal? Employees who work for a temporary employment agency are entitled to a transitional payment in the event of dismissal (by the court or the UWV), but also if a temporary (phase) contract is not extended by the temporary employment agency and you therefore no longer have a contract. You must then no longer have a temporary contract against your will.
This gross compensation is, among other things, a supplement to the WW and is taxed.
Phases A, B and C or 1-2, 3 and 4 of the agency work employment contract
A temporary worker has phase A or phase 1-2 in the first 78 worked weeks that he works for a temporary agency. Each (calendar) week in which he works counts towards these 78 weeks. If there is an interruption of more than six months, the counting starts again. A temporary agency worker enters phase B as soon as the agency work employment contract is continued after phase A. This phase B or phase 3 lasts a maximum of 4 years, in which a maximum of six agency work employment contracts without agency clause are agreed. In phase C or phase 4, the temporary worker works on the basis of a temporary employment contract without agency clause for an indefinite period (i.e. without agency clause).
In the ABU CLA, phase A, phase B and phase C apply.
The NBBU CLA provides for phases 1-2, 3 and 4.
When is no transitional compensation required after the end of a contract with a temporary employment agency?
In certain cases a temporary employment agency does not have to pay transition compensation upon dismissal, for example:
if the contract is terminated by mutual consent (settlement agreement; if this has not been agreed);
if the employee has been dismissed due to serious culpability;
if the employee is under 18 and worked an average of no more than 12 hours per week;
if the employee has reached the retirement age;
if the company is bankrupt;
in case of debt restructuring or suspension of payment;
If a collective agreement includes an ‘equivalent provision’.
Transition allowance level for temporary agency workers
The amount of the transition allowance is based on the salary per month and the number of years of service.
The severance payment may also be part of a settlement agreement in the event of dismissal by mutual consent. This must have been agreed with the employment agency.
Subsequent application to the court for severance pay for temporary agency workers
A lawyer in Amsterdam can apply for the transition payment at the end of the contract. This must be done within 3 months after the dismissal by means of a petition to the cantonal judge.
For the calculation of the transitional compensation, successive employment contracts with the same employer are included, provided that the employment contracts have succeeded each other with interruptions of not more than 6 months.
Contact with law firm for transition fee in Amsterdam
As a law firm in Amsterdam, we are specialized in legal advice on the transition allowance. For (free) legal advice on your transition allowance as a temporary employee, please contact our experienced lawyer employment law and dismissal law in Amsterdam mr. P.Chr. Snijders: 020-5221999.