Common use of Transition Allowance Clause in Contracts

Transition Allowance. ▪ If the employer has invested in strengthening the employee’s position on the job market while the employee is still employed with the company, like by paying the costs of training for a different job for example, the employer may deduct these costs from the transition allowance. This is only permitted if the employer has complied with the Dutch Decree on the conditions that apply to deducting costs from the transition allowance [Besluit voorwaarden in mindering brengen kosten op transitievergoeding]. ▪ The employer may not, however, deduct the amount the company has paid from the employee’s personal budget from the transition allowance.