Calculating transition fee: technical change in controlling wage and working hours

By: Alex Morrison 19-10-2015 10:08 AM
Categories: ** HR daily news,

A technical change to the regulation of wages and working hours came into effect on October 13 2015. New rules have been proposed for the calculation of transition fees and the fee that an employer has to pay if they ignore the notice period for contracts.

The Staatscourant notes that this change will affect the average working hours that are calculated for employees who have not worked due to leave, strike, or illness. Currently, if an employee has not worked for a total of thirty days due to these reasons, the average working hours calculated are extended by another calendar month.

The 'Besluit Loonbegrip Vergoeding Aanzegtermijn en Transitievergoeding' (Regulation Concerning Wage Concept of Notice Fees and Transition Fees) defines that salary is the basis for calculating the transit fee and the fee for disregarding the notice period. For fixed contracts, this is calculated by multiplying the gross hourly wages with the agreed working hours per month. If a contract is not based on fixed working hours, the salary is calculated on the average working hours in the twelve months prior to the contract ending.

In the case of non-fixed contracts, the new regulations state that employees whose working hours have not been fulfilled for reasons other than leave, strike, or illness are disregarded for calculating the average working hours. If these periods of time add up to a month or more, an extension is to take place for the period of twelve months mentioned above. A 'month' is defined as a calendar month. Because a calendar month can vary from twenty-eight to thirty-one days, the current system is not sufficiently clear and will be changed. 

Source: Rijksoverheid

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