In the Kolom ruling of 14 September 2018, the Supreme Court held that an employee was entitled to a partial transition payment. The employee had become partially unfit for work and subsequently agreed with her employer that she would continue working 55% of her full working hours.
A partial termination of the employment contract – and a right to a partial transition payment – exists where working hours are reduced through:
- partial termination;
- dismissal followed by a new, adjusted employment contract;
- an amendment to the employment contract.
There must also be a substantial and structural reduction in the employment contract.
The reduction must be at least 20% and reasonably expected to be permanent.
No right to a transition payment
For more information on that earlier ruling, click here (in Dutch).
In preliminary reference proceedings, the Supreme Court was asked whether an employee redeployed to a lower-paid role after long-term incapacity for work is also entitled to a partial transition payment. The Supreme Court answered this question in the negative.
The Supreme Court ruled that redeployment to a different role cannot be equated with a partial termination of the employment contract. A pay reduction resulting from redeployment therefore does not give rise to a right to a partial transition payment.
Relevant here is that an employer can only terminate an employee’s contract if the employee cannot be redeployed to another role. Redeployment – even where the employee earns less afterwards – is not a partial termination of the employment contract.
For the Supreme Court’s ruling, click here (in Dutch).
Questions about the above? Please contact one of Sørensen Advocaten’s employment lawyers. Call: +31 (0)10-2492444
