If an employer is declared in a state of bankruptcy or the employer has been granted a moratorium, they are no longer obliged to pay a transitional payment to their employees in case of dismissal. However, if a restart occurs and the acquirer is considered to be the successor employer, the duration of the employment with the former employer must also be taken into account when calculating the height of the transitional payment. The situation that the former employer has gone bankrupt, does not affect that. The provision that the bankrupt employer does not owe any transitional payment to an employee should not be interpreted that the employee no longer has any entitlement to this transitional payment at all. Recent case law indicates that the law is not intended to be a ‘cut’ to be made with regard to the successor employership before and after bankruptcy, when it comes to the working history that counts towards the transitional payment. Therefore, it is important to note that if a restart occurs, and the acquirer is the successor employer, the employees retain their seniority with regard to the calculation of the amount of the transitional payment.
Netherlands