Final settlement after dismissal: what you need to check

When you leave a job, whether that is due to dismissal, the expiry of a fixed-term contract or because you choose to leave yourself, your employer should always draw up a final settlement (eindafrekening). This settlement forms the financial conclusion of your working relationship and shows exactly what you are still entitled to and what may be offset.

What is a final settlement?

The final settlement is an overview of all outstanding items at the moment your employment contract ends. Think of your last salary, accrued holiday days, holiday pay or outstanding bonuses. Sometimes a transition payment (transitievergoeding) or a fee for outplacement is also included.

Any debts to the employer, such as too much leave taken or an advance, are also processed in it. This creates a complete overview of what you are still owed or must repay.

An employer is legally obliged to prepare a final settlement, regardless of the reason for leaving. Usually you receive it together with your last payslip, or at the latest within one month of the last working day.

What should the final settlement contain?

The exact content varies from one situation to another, but in almost all cases a final settlement contains:

• Your last salary up to the last working day.
• Accrued holiday days that have not yet been taken.
• Holiday pay (at least 8%) over the period worked.
• Any bonuses or commissions that are still outstanding.
• A transition payment or other termination payment, where applicable.
• Any offsets such as advances, training costs or too much leave taken.

When you are dismissed or declared redundant, the employer may offer an outplacement programme to help you find a new job. In that case the fee for outplacement can be part of the final settlement. You can read more about this on our page about outplacement via Care4Careers and how an outplacement programme unfolds.

When do you receive the final settlement?

In most cases you receive the final settlement at the moment your last salary is paid out. Legally, this may be no later than one month after the end of the employment. If the final settlement is provided later, you can point this out to your employer in writing.

In the case of dismissal after two years of illness, the employer is obliged to prepare a final settlement and to pay out the transition payment. Make sure that this payment is actually stated in the final settlement.

Always check your final settlement

It is important to check your final settlement carefully. Compare the number of holiday days taken with your own records and check whether the holiday pay is correct. Also look at whether any bonuses or expense allowances have been calculated correctly.

Is something missing, or is the amount incorrect? Then ask your employer for an explanation. In many cases a mistake is easy to correct.

What if the employer does not pay?

If your employer does not pay the final settlement, or pays it late, you can take action against this. Start with a friendly, written request. If payment still fails to arrive, you can claim the statutory increase and interest on the outstanding amount.

In complex situations, for example with a settlement agreement (vaststellingsovereenkomst, VSO) or when there is disagreement about the transition payment, it is wise to seek legal or career advice. Our experts are happy to help you gain insight into your rights and possible next steps.

Final settlement after a settlement agreement

In the case of termination by mutual consent (settlement agreement), the arrangements about the final settlement are often included in the document itself. Usually this concerns the payment of outstanding leave days, holiday pay and any allowances. Check that the arrangements match what you later receive in your account.

Are you receiving support towards new work through an outplacement scheme? Then the programme is often paid directly by the employer, so that it does not have to come out of your transition payment.

Why careful checking pays off

A correct final settlement prevents financial surprises. It is often a moment when significant amounts are transferred, and mistakes can have major consequences, especially if you have just become unemployed or are in an outplacement programme.

So check all amounts carefully, ask for clarification where things are unclear, and keep the settlement together with your last payslip and settlement agreement.

In summary

The final settlement is the financial conclusion of your employment. You are entitled to a correct calculation of salary, holiday pay, outstanding days and any allowances. Outplacement or a transition payment can also be part of this settlement. Check everything carefully and seek advice if you have doubts about the accuracy of the amounts or the arrangements in your settlement agreement.

Would you like to know more about how best to move forward after dismissal or the expiry of your contract? Read more about outplacement and how an outplacement programme helps you take a new step in your career.

Was there long-term illness before the dismissal? Then a second track programme (spoor 2) may also have been relevant.