At the end of your employment contract your employer has to settle the amounts still owed. Think of the last pay, accrued holiday allowance, outstanding holiday days and any other terms of employment. Check every item separately. A transition payment or a payment under a settlement agreement may also be owed and does not automatically have the same payment deadline or legal rules.
So a final settlement is more than one net amount in your bank account. The amount can be too low because hours are missing, a wrong wage value has been used or study costs have been deducted. It also happens that a payment is rightly not yet on the first payslip, but has to be paid later under a separate arrangement. Without a specification you cannot assess that difference.
Below you will find a checklist, a worked example and a model letter. If your employer does not pay at all, our information on a wage claim can help with the next steps. Where there is a dispute about severance payments, do not wait for every administrative discussion to be concluded.
What a final settlement should contain
Which items are owed depends on your contract, collective agreement and termination arrangements. Not everyone is entitled to a bonus or overtime payment. What you have built up may not disappear unnoticed because your access to the staff portal is closed.
| Item | What you check | Documents needed |
|---|---|---|
| Last salary | Correct end date, hours and wage components | Contract, payslips, rota |
| Holiday allowance | Accrual period, basis and earlier payment | Payslips, collective agreement |
| Holiday days | Valid balance and correct value per hour | Leave records, leave arrangements |
| Overtime and allowances | Entitlement, recording and rate | Timesheet, collective agreement, employer’s approval |
| Bonus or commission | Scheme, performance period and conditions | Bonus plan, results, correspondence |
| Expense allowances | Expenses submitted and approved | Claims, receipts |
| Deductions | Legal basis, amount and whether set-off is allowed | Arrangement, specification, evidence |
| Severance payment | Separate entitlement and payment date | Statute, court order or agreement |
Ask for an overview in which gross wage items, deductions and net expense allowances are recognisably separated. Also check whether a payment has already been received earlier. An amount correctly paid in May does not have to be paid in full again on leaving in June; what does have to be included is the entitlement accrued after that.
Up to what date are you entitled to salary?
The legal end date of the employment contract is the starting point. The last day on which you actually worked may be earlier. Where you are released from work or on holiday, the employment still continues. Your pay does not then automatically stop on the day you hand in your laptop.
If you leave in the middle of a pay period, check how the pay has been calculated pro rata. See which method of calculation follows from your terms of employment and whether fixed allowances have been correctly included. In the case of illness a different wage percentage may apply, but even then it must be clear to which days and components this percentage has been applied.
A conflict about performance or an unpleasant departure does not automatically give the employer the right to withhold the last salary. Separate rules apply to pay during suspension or release from work. If necessary, read our explanation of pay when placed on non-active duty or suspended.
How do you check the holiday pay?
Holiday pay usually means the holiday allowance. Check over which period it has accrued, which wage components count and which percentage applies. Many employees know a percentage of eight per cent, but the precise entitlement has to be tested against the applicable statutory and contractual rules.
An annual payment in May does not mean that no new holiday allowance arises after May. On leaving, the accrual not yet paid has to be established. Anyone who already receives holiday allowance periodically should instead check that the final settlement does not proceed from an incorrect outstanding balance. The payslips usually show what has been accrued and paid out.
Holiday allowance and payment of holiday days are different items. The one does not replace the other. If there is only an amount described as holiday, ask for a breakdown. Otherwise it remains unclear whether both your monetary accrual and the value of leave not taken have been settled.
Which holiday days have to be paid out?
At the end of the employment contract, outstanding and still valid holiday entitlements have to be paid out. That applies to statutory and above-statutory holiday. Have the balance checked per accrual year, particularly where hours were removed earlier because of lapse or were recorded differently during illness.
The wage value of an hour of holiday is not always equal to the bare hourly wage alone. Components belonging to the normal holiday pay can be relevant. With structural allowances or variable pay this calls for a careful calculation. Do not use an arbitrary divisor without explanation to convert a monthly wage into an hourly wage.
If you received less pay during illness, that lower percentage is not automatically the correct basis for the payment of holiday. Nor does release from work automatically mean that all hours have been taken. Check separate leave arrangements and the text of any settlement agreement. On leaving, also ask for a statement of the remaining holiday entitlements.
Do overtime, bonus and commission have to be paid?
Overtime does not in every job automatically give a right to a separate allowance percentage. Look at the collective agreement, the contract and the arrangements made. Also relevant is whether the hours were actually worked, how they were recorded and whether time off in lieu was agreed. Keep evidence before your account is closed, in so far as you may lawfully keep it.
With bonuses and commission the scheme is decisive. Examine which performance counts, when the entitlement arises and whether leaving during the year has consequences. A provision that you must be employed on the payment date calls for assessment in the specific circumstances. Do not assume without investigation that such a condition is always valid or always invalid.
Sometimes the final amount can only be established later, for example after the close of a financial year. Record then when the settlement will follow, what information you will receive and how you can check the calculation. A bonus that is not yet known should not be given up unnoticed in a general full and final discharge.
When does the employer have to pay the final settlement?
There is no single universal rule that every conceivable item must always be paid exactly one month after departure. For regular pay the usual agreed payday matters, within the statutory limits. For other entitlements you look at the nature of the item, the collective agreement, the agreement and any court decision.
An employer cannot postpone a salary that is already due indefinitely because the full administration is not yet finished. So ask per item for the calculation and the payment date. A dispute about a bonus does not have to hold up payment of an undisputed last salary.
Separate rules apply to the statutory transition payment. Statutory interest is payable on the transition payment from one month after the day on which the employment contract ended (article 7:686a(1) of the Dutch Civil Code); in addition the short forfeiture period for filing an application with the subdistrict court deserves attention. A contractually agreed severance payment may have yet another payment date. So never check the payslip alone.
May your employer deduct study costs or other amounts?
With a deduction two questions have to be answered. Does the debt really exist? And may the employer set that debt off against your payment in this way? An amount on the payslip is no proof that both questions have to be answered in the affirmative.
At the end of the employment contract there is more scope for set-off than during the ongoing employment. That does not mean that every debt put forward is valid or that the other protective rules disappear. Have the basis, the fact that it is due, the declaration of set-off and the applicable wage protection checked separately.
With study costs it may for example matter that certain compulsory training has to be offered free of charge. An unclear repayment clause, incorrect tapering or a payment already received can also affect the calculation. Ask the employer for the clause, the invoices and the calculation. Do not sign an acknowledgement of debt merely to release the rest of your salary.
For damage to a laptop or a company car there must likewise first be legal liability. Not every instance of damage during work is for the employee’s account. With a lease arrangement specific contractual obligations may also play a part. The name of the deduction does not replace that assessment.
What happens with a negative leave balance?
A negative balance does not automatically mean that every recorded minus hour has to be repaid. Examine how the balance arose. Was it holiday taken in advance, a calculation error, insufficient work scheduled or an arrangement about time off in lieu? These situations have different legal consequences.
Check whether clear arrangements were made in advance about taking leave in advance and about repayment on leaving. Also check whether the employer kept the balance correctly and informed you about it. A shortfall arising through the employer’s scheduling cannot simply be treated as if you had taken a personal advance.
Where there is a set-off, ask for a calculation per date and hour. Dispute concrete errors, for example double-booked holiday days or a different working time. A general objection to the net amount is less useful than a verifiable explanation of why fifteen minus hours are wrongly in the overview.
A worked example of a final settlement
The fictitious example below only shows how you can order the items. The amounts and hourly value are assumptions, not statutory rates. Suppose that after checking the following is outstanding:
| Element | Calculation | Gross amount |
|---|---|---|
| Remaining salary | Established last pay period | € 1,800 |
| Holiday days | 30 hours at an established value of € 20 | € 600 |
| Holiday allowance | Accrual not yet paid out | € 960 |
| Overtime | 12 hours at the agreed rate of € 20 | € 240 |
| Total wage items | Sum of the above amounts | € 3,600 |
On top of that there may, for example, be € 100 in business expenses to be reimbursed separately. Any transition payment is not included here and must be assessed separately. Nor has account yet been taken of payroll taxes or other valid deductions.
So do not compare the gross total directly with your bank statement. Ask for the step from gross to net and check every deduction. The withholding of payroll tax does not make a correct gross payment incorrect; an unexplained debt item can. No guaranteed net amount for your own situation follows from this example.
What if you have signed a settlement agreement?
First read what has concretely been agreed about pay, holiday days, bonus, expenses and severance payment. A clear agreement names amounts or methods of calculation and payment dates. General formulations such as everything is included can give rise to discussion about entitlements you specifically expected to receive separately.
Full and final discharge can have consequences for claiming forgotten items later. Its scope depends on the text and the circumstances. A payment obligation arising from the settlement agreement itself does not simply disappear because that same agreement contains a full and final discharge. It is, however, wise to deal expressly in advance with unknown or disputed items.
If the proposal is still in front of you, have the financial settlement assessed before you sign. Our page on the settlement agreement deals with the wider points to watch. If you have already signed, also check whether a statutory cooling-off period is still running; do not wait for a later payslip for that.
Which time limits must you not miss?
An ordinary wage claim is in principle barred after five years from the date each individual payment became due (article 3:308 of the Dutch Civil Code; interruption under article 3:317). A suitable written act of interruption can matter. That is something different from the short forfeiture periods for certain applications around dismissal: an email of protest does not automatically stop those periods.
| Entitlement | Important point to note |
|---|---|
| Arrears of periodic pay | In principle five years per payment that has fallen due |
| Statutory transition payment | Application to the subdistrict court in principle within three months of the day on which the employment contract ended (article 7:686a(4)(b) of the Dutch Civil Code) |
| Notification payment | Application in principle within three months of the day on which the notification obligation arose, so from one month before the end date (article 7:686a(4)(e) of the Dutch Civil Code) |
| Setting aside a notice of termination | In principle two months after the day on which the employment contract ended (article 7:686a(4)(a) of the Dutch Civil Code); check the specific procedure |
| Payment under an agreement | Assess the agreement and the legal basis separately |
With the notification payment, note the starting point: the period does not run from the end date of the contract, but from the day on which the notification obligation arose — at the latest one month before the end of the fixed-term contract (articles 7:668(1) and 7:686a(4)(e) of the Dutch Civil Code). So have the final date calculated precisely. Specific rules exist for other dismissal applications too. The table is intended to prompt timely action, not to establish your last day for proceedings without examining the file.
What can you do about an incorrect or missing payment?
First ask for the final settlement and the underlying calculation. Compare it with the contract, collective agreement, payslips, leave and hours records. Then make an overview of missing items and disputed deductions. For each element state your amount, method of calculation and evidence.
If payment of pay that is due fails to follow, you can demand payment in writing. Depending on the circumstances, statutory interest and the statutory increase for late payment of wages may come into play. The increase runs from the fourth working day after the day on which payment should have been made and amounts to at most half the wage owed (article 7:625 of the Dutch Civil Code). It is not an automatic surcharge on every dismissal-related payment; the court can moreover moderate the increase.
The same statutory wage increase is not simply calculated on a transition payment. Expense allowances also require their own assessment. If payment problems threaten or a short period is running out, have it determined quickly which procedure is appropriate. Do not keep sending reminders indefinitely while an application to the court is needed.
Model letter for requesting a final settlement
Dear Sir or Madam,
My employment contract ended on [date]. I would like to receive a full final settlement with a specification of the last pay, holiday allowance, remaining holiday hours and other items owed. Would you also substantiate every deduction separately?
According to my records, [item, period and amount] is currently missing. I dispute the item [deduction], because [specific reason]. I request you to correct the calculation and to pay the amount already due within seven days of receipt of this letter. For other items I would like to receive the applicable payment date.
I expressly reserve the right to demand performance, as well as statutory interest and, in so far as applicable, the statutory increase. This letter does not imply agreement with the accuracy of other items that cannot yet be verified.
Yours faithfully,
[Name]
Adapt the amounts and wording to your own file. The seven days mentioned are a requested period for a response, not a universal statutory final settlement period. This letter does not replace a timely application where a forfeiture period applies.
Frequently asked questions about the final settlement on dismissal
What is a final settlement?
A final settlement is the financial winding up of outstanding entitlements at the end of your employment contract. It may include the last pay, holiday allowance, holiday days and other items. A severance payment often has to be checked separately.
Does the final settlement always have to be paid within a month?
Not every item has the same deadline. Check the usual payday, the collective agreement and the termination arrangements. Separate rules apply to a statutory transition payment. An administrative delay does not in itself justify postponing pay that is already due.
Do I get holiday days paid out if I resign myself?
Outstanding, still valid holiday entitlements have to be settled on your own resignation too. Check the balance and the wage value. Whether you are also entitled to a transition payment is a different question and does not follow automatically from your departure.
Do I still get holiday pay after the annual payment?
The holiday allowance accrued since the previous payment and not yet paid has to be assessed and settled. Check the accrual period and any periodic payments. That way you avoid both a missing payment and double counting.
May my employer deduct study costs from my last salary?
That depends on the validity of the debt and the rules on set-off. Some compulsory training has to be free of charge. Ask for the clause, the invoices and the calculation, and have a disputed deduction assessed.
Do I have to repay a negative leave balance?
Not automatically. Examine what caused the shortfall and which valid arrangements apply. Holiday taken in advance, an administrative error and insufficient work scheduled by the employer are legally different situations.
Is the transition payment always on the same payslip?
It does not have to be. The payment can be specified and paid separately. Check the entitlement, the calculation and the payment date, and keep an eye on the short period for applying to the court for a statutory transition payment.
Can I claim fifty per cent extra for late payment?
For wages that qualify, a statutory increase of up to fifty per cent can apply. Attributability, the length of the delay and moderation by the court all play a part. The increase does not apply automatically to every item on the final settlement.
Can I still ask for payment after a full and final discharge?
That depends on the agreement and the entitlement concerned. An agreed payment obligation remains relevant, but forgotten items can fall under the full and final discharge. Have the text and the circumstances assessed before you assume a definitive loss or right.
Which documents are needed for a legal assessment?
Gather your contract, collective agreement, payslips, bank payments, leave overview, hours records and termination documents. Add the substantiation of deductions and relevant correspondence. With those, amounts, deadlines and next steps can be assessed properly.
Have your final settlement checked
Is pay missing or do you not understand a deduction? Submit your final settlement and the underlying documents through contact with Arslan Advocaten. Also state when your employment ended, so that any short deadlines can be taken into account straight away in the assessment.
Sources and legal basis
- Book 7 of the Dutch Civil Code, including articles 7:623 to 7:626, 7:632, 7:641, 7:668, 7:673 and 7:686a; Book 3, articles 3:307, 3:308 and 3:317; Book 6, article 6:119.
- Minimum Wage and Minimum Holiday Allowance Act; the applicable collective agreement, employment contract and termination arrangements.
- Dutch government on the payment of holiday days not taken.
- Arslan Advocaten on wage claims and payment deadlines.
