The Netherlands: Standards for Compensation Act maximisation and granting of both transition payment and fair compensation

By judgment of December 20, 2018, the Dutch Appeal Court took the view on appeal that granting a transition payment in addition to fair compensation is compatible with the aim and the purpose of the Standards for Compensation Act. The aim and the purpose of the Standards for Compensation Act are indeed important in calculating the level of fair compensation, since the fair compensation is funded by public money.

It may therefore be concluded from this that the court is not bound by the Standards for Compensation Act maximum of EUR 75,000 gross, when granting a transition payment and/or fair compensation. In calculating the level of fair compensation, the court must however take account of the fact that the fair compensation is funded out of public funds.