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ARTICLE · 09 OCTOBER 2023

Compensation For Irregular Termination Exceeds Maximum Severance Pay WNT

The purpose of the Nomination of Top Income Act (hereafter: WNT) is to prevent excessive remuneration and severance payments at institutions in the (semi) public sector.

NetherlandsEmployment and HR

The purpose of the Nomination of Top Income Act (hereafter: WNT) is to prevent excessive remuneration and severance payments at institutions in the (semi) public sector. Based on the WNT, a maximum compensation of EUR 75,000 can, in principle, be paid in the event of termination.

This summer, however, the Court of Appeal of 's-Hertogenbosch has ruled that an employee to whom the WNT applies is entitled to a higher severance payment because of the fixed compensation for irregular termination. Read below to find out how the court came to its decision.

What was involved here?

Since 1 January 2016, the employee concerned has worked as a statutory director of a foundation that aims to help clients improve or maintain their own lives as much as possible. In mid-2021, the foundation's finances began to deteriorate, and criticism of the director's performance started to appear. On 12 April 2022, the director received a letter informing him that his employment would be

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