What is a transition allowance?

A transition allowance is a financial compensation that employees receive when their employment contract ends. This compensation is designed to make the transition to a new job or to another source of income easier.

For over-60s, it is important to be well-informed about their rights and the options offered by the transition allowance, especially as they often face specific challenges in the labour market.

Important considerations for over-60s

Optimising the transition allowance and avoiding legal pitfalls is essential for over-60s:

  1. Negotiation: While negotiating a settlement agreement a higher transition allowance agree, especially if the reason for dismissal is debatable.
  2. Legal advice: Engage an employment lawyer to ensure all rights are respected and avoid legal pitfalls.
  3. Documentation: Keep all relevant documentation such as employment contracts, pay slips and correspondence with the employer.

How to apply for transitional compensation?

Applying for severance pay can be challenging, especially for over-60s who may be less familiar with digital options. Here is a step-by-step guide:

  1. Submit application: Submit a written request to your employer for transitional compensation.
  2. Required documents: Collect and provide all necessary documents, such as your employment contract and pay slips.
  3. Terms: Pay attention to the deadlines for submitting your application. You must apply for the transition allowance within three months of the end of your employment contract.

Examples

Here are some real-life examples of over-60s who have received transition pay:

Case 1: Jan, a 64-year-old warehouse worker, was dismissed after 20 years of service for business reasons. With legal advice, he managed to obtain a €30,000 transitional allowance.

Case 2: Els, a 61-year-old nurse, received €25,000 after a conflict with her employer. Thanks to good documentation and legal assistance, her transitional compensation was successfully negotiated.

Transition compensation provides an important financial cushion for over-60s facing redundancy. By being well-informed and taking the right steps, over-60s can take full advantage of their right to transition compensation.

Make sure you always seek legal advice and are well prepared to defend your rights.

Have you received a settlement agreement and want to have it checked that everything is correct? Please contact us via WhatsApp, call 085 080 5482 or send a email; our employment lawyer will be happy to talk to you and provide the answers to all your questions.

Frequently asked questions

  1. What is the transition allowance? The transition allowance is a financial compensation in case of dismissal, designed to ease the transition to other work.
  2. How do I know if I am entitled to transitional pay? In principle, if your employment contract is terminated by your employer and you have been employed for at least two years, you are entitled to a transitional payment.
  3. How is the level of transitional compensation determined for over-60s? The amount is calculated based on years of service and monthly salary, with specific rules for employees over 50.
  4. What should I do if my employer does not want to pay transitional compensation? Engage an employment lawyer and consider legal action if your employer refuses to pay the transitional allowance.