News item | 29-05-2026 | 16:34
From 2027, employers will no longer receive money back from the government for the transition compensation they pay in the event of dismissal due to disability. This also applies to the compensation scheme in the event of business termination due to retirement or death of the employer. The previous government had already proposed to abolish compensation for larger employers as a result of dismissal in the event of disability.
The coalition agreement of the current cabinet states that compensation for all employers will disappear. The government has chosen to abolish the compensation schemes as of January 1, 2027. Today the government will send the amendment to the bill to the House of Representatives. This measure contributes to sustainable public finances.
Transition compensation
Long-term ill employees who are dismissed or whose contracts are not extended are entitled to a transition payment. The amount of the compensation depends on the monthly salary and the duration of the employment contract. Employees whose employer retires or dies are also entitled to compensation.
The coalition agreement stipulates that the existing transition payment will also be reformed. It should help people even more in guiding them from work to work. For example, it is examined whether employers who have invested timely and sufficiently in further training, retraining or make maximum efforts with regard to the reintegration obligations under the Gatekeeper Act, have lower or no obligations at all with regard to the new transition compensation.