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Dismissal Compensations in the Amsterdam Collective Agreement: Combination with Transition Payment

How collective agreements in Amsterdam provide extra compensations alongside the transition payment: local examples from metal, construction and care, and tips to maximize your rights.

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In Amsterdam, where the labor market is bustling with sectors such as metal, construction and care, collective labor agreements (CLAs) often provide supplementary dismissal compensations in addition to the statutory transition payment. Article 7:673 paragraph 12 of the Dutch Civil Code grants priority to CLA provisions if they are more favorable to the employee. Take the metal CLA in the Amsterdam region: here a 'old-style' compensation of 1 month's salary per year of service applies, fully cumulative with the transition payment, ideal for long-term employees at companies along the Zuidas or in Westpoort.

Important Amsterdam sectors: Construction (Construction CLA: extra payments on top of transition, crucial for projects such as the redevelopment of the Johan Cruijff Arena), Care (in hospitals such as OLVG or AMC up to 1.5 months per year of service) and Education (specific transition pots at secondary (VO) and primary (PO) schools in the city). Check your CLA via the CLA finder on cao.nl or consult the FNV offices in Amsterdam-East. For secondary vocational education institutions (VSOs) in Amsterdam-Amstelland, the total arrangement must not be less favorable than the transition payment plus fair compensation.

In 2025, CLAs in the capital remain flexible, while the Transition Payment Compensation Act encourages employers to form pots for long-term employment relationships, such as at family businesses in the Jordaan. Benefits: higher payments, outplacement via local agencies and sometimes retraining for the Amsterdam tech and creative sector. Disadvantage: more complex calculations due to regional variations.

Tip: Engage union support via the FNV building on Prins Hendrikkade for negotiations. In disputes in Amsterdam, the sub-district court judge of the Amsterdam District Court decides based on the CLA text and local case law.