The subdistrict court formula is a formula that the severance pay calculates. Dutch subdistrict courts developed this guideline to calculate the amount of the so-called dissolution compensation. With effect from 2015, subdistrict courts no longer use the subdistrict court formula for dismissal, but the severance pay and any additional compensation on top of this severance pay. In case of individual dismissal by mutual consent (settlement agreement) and collective dismissal, the subdistrict court formula can still be used to determine compensation.
