News item | 05-12-2025 | 2:15 PM
The bill ‘Limiting the transition payment compensation scheme for dismissal due to long-term disability to small employers’ has been sent to the House of Representatives. The Council of Ministers agreed to this at the proposal of Minister Paul of Social Affairs and Employment.
The bill ensures that only small employers are compensated, under certain conditions, for the transition payment paid in the event of dismissal due to long-term disability. Whether an employer is large, medium-sized or small is determined again every calendar year.
Limiting the compensation for a transition payment after dismissal due to long-term disability to small employers is a financial agreement that was made at the start of the cabinet. This will result in structural savings of 380 million euros.
Employees who are dismissed or whose contracts are not extended are entitled to a transition payment. The transition payment is intended as compensation for dismissal and to make the transition to another job easier. The amount of the transition payment depends on the monthly salary and the duration of the employment contract.
The bill is being debated in the House of Representatives and the Senate. If they agree, the aim is for the bill to come into effect on July 1, 2026