District court formula
With the district court formula, you can calculate the amount that the employer owes the employee in severance pay. Would you like to know that you may be entitled to in the case of dismissal? We will explain the district court formula in the article below.
The district court formula consists of three parts
The number of considered years in employment (A) x gross salary (B) X correction factor (C)
The first two parts (A and B) are factual, part C is subjective.
Explanation factor A
The years of employment that you have as an ‘older’ employee is rated higher than the years you accumulated as a ‘younger’ employee.
- Up to 35 years - 0,5
- Between 35 and 45 years - 1
- Between 45 and 55 years - 1,5
- Above 55 years - 2
Explanation factor B
The gross pay including holiday pay, end-of-year bonus and recurring bonuses.
Explanation factor C
A weighing is between 0 and 2 for the ‘culpability’ of the employee or the employer. When the employee is seriously culpable, the factor is 0 and when the employer is seriously culpable, the factor is 2.
Are you, as an employee, facing (imminent) dismissal? You can read more about what you need to know when your contract is terminated here*, on the start page for dismissal for employees of the UWV. This page is a good place to start to read more about your rights and obligations for dismissal. On the site of the government you can find more information about labour law and dismissal*, the WAB* (Law Balanced Labour Market) and the transition compensation*. Or employees can read more about their rights and obligations in this article.