Resigning or resigning by mutual consent: am I entitled to severance pay?
May 29, 2020
Have you found a new job or do you no longer like your job? Then you can of course resign yourself. But are you entitled to severance pay? Or does it only apply when you are fired? And what about dismissal by mutual consent? We understand that you have many questions and we explain exactly what your right to severance pay is.
What is severance pay?
A severance payment is a compensation that you are entitled to when you are dismissed. You are entitled to severance pay if you are 18 or older. It doesn't matter how long you have been employed. You are even entitled to compensation during the probationary period.
Would you like to know more about severance pay and transition payment? Then read this blog.
Are you resigning yourself or is a resignation by mutual consent ? Then you are not entitled to severance pay. With a few exceptions. Read on and we'll explain it to you.
Resigning yourself and severance pay
Are you not satisfied with your job and do you want to quit? Or have you found a new job? In that case, keep in mind that you are not entitled to a severance payment or to an unemployment benefit. If it is your own choice to quit your job, your employer does not have to compensate you for the dismissal.
This also applies if your employer offers you an equivalent contract before your temporary contract expires or offers to renew your contract and you do not agree to it. You choose not to continue the employment and you will lose your right to a severance payment.
You are entitled to severance pay when you resign due to a seriously culpable act or seriously culpable negligence on the part of your employer. This may mean, for example, that harassment takes place in the workplace, that no wages have been paid or that things escalate between the employee and employer.
There are 5 most common types of seriously culpable acts:
- Serious violation of reintegration obligations
- No salary payment
- The employer is escalating things and is pushing hard for dismissal
- The employer makes insufficient effort to improve the working relationship after previous legal proceedings between the parties
You can then appeal to the Subdistrict Court if he wants to terminate your employment contract. You have to build up a file for this and come up with good evidence. You have to collect good reasons if you want to get a severance payment or if you want to keep your right to unemployment benefits.
Have you been fired for seriously culpable actions by your employer? Then immediately apply for your severance payment.
Dismissal by mutual consent
Dismissal by mutual consent means that you jointly decide to terminate the employment contract after consultation with your employer. It may be that you really do not like the work anymore, but you cannot resign because your right to unemployment benefits will expire. You then ask your employer to cooperate in a dismissal by mutual consent. You are therefore not entitled to severance paybecause you agree to the dismissal yourself. But why would you agree to your dismissal if you are not entitled to severance pay?
In most cases you will still receive a severance payment. Because you both agree to the dismissal, a severance payment is often agreed. The conditions under which the severance payment is completed must be laid down in a written agreement. You put all agreements neatly in the contract, this is also called the settlement agreement. When drawing up the agreement, pay attention to the following points:
- Terms of dismissal must be recorded in writing.
- Initiative comes from the employer, so that you retain the right to unemployment benefits.
- Dismissal must include financial compensation (severance pay).
- The employer must properly explain the consequences of dismissal to you.
- Check the contract carefully.
- By law, you have at least 14 days to consider in case of dismissal.
- You and your employer must both adhere to the notice period.
Negotiating severance pay
Did you know that you can negotiate your severance payment? Your severance pay is one third of your gross monthly salary, times the number of months you have been working for the company. This is the amount to which you are legally entitled. Nevertheless, you can negotiate about the compensation, especially if you are dismissed by mutual consent. Usually your employer makes an offer and they already assume that you will make a counter offer. So never agree immediately.
Did you not resign from your employer, but were you fired? Then you are almost always entitled to severance pay. We are happy to help you claim your severance payment and give you what you are entitled to!
Not sure if you are entitled? Then take a look at the page My rights.
We often use the term severance pay instead of the official term transition payment. This is because people will understand it more easily that way. Want to know more?
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