Transition compensation for flex workers: how does it work?

When your temporary contract as a flex worker is not renewed, you are entitled to transition compensation. But how much is this compensation? Are you entitled to it even during your probation period? And what happens if you resign yourself?

What is transition compensation?
Transition compensation is a financial allowance that an employee receives when their temporary contract is not renewed. It is intended to financially compensate for the end of employment and to support the transition to a new job. You can use this compensation for training or courses to help you retrain or find another job more easily, but this is not mandatory. You are free to spend the money as you wish, and you do not have to account for it.

Do flex workers accrue transition compensation from day 1?
Yes! Since the introduction of the balanced labour market act (WAB) on January 1, 2020, it has been legally established that even as a flex worker, you start accruing transition compensation from your first working day. This law introduced several important changes to labor regulations, including this provision.

So if I don't pass my probation period, do I still receive transition compensation?
That is correct. As a flex worker, you always receive transition compensation when your temporary contract is not renewed, even during your probation period. However, keep in mind that the compensation is calculated based on the number of months or years worked, so the amount will be minimal if your contract ends early.

Important! Carrière is your employer.
This is crucial to understand. Carrière is your actual employer, they pay your salary and arrange your work. Therefore, you will only receive transition compensation if the agency does not renew your contract.

If you stop working for one client of the agency but continue working for another client, you will not receive transition compensation because you remain an employee of the agency.

Do I receive transition compensation if I resign myself?
No, if you resign voluntarily, you will not receive transition compensation. Since it is your own decision to leave, your employer is not required to compensate you. However, you are allowed to resign even if you have a temporary contract.

What if I have a permanent contract instead of a temporary one?
As a flex worker, you go through three contract phases: phase A, B, and C.

Phase C means you have a permanent contract (contract for an indefinite period). If your employer wants to terminate a phase C contract, they must apply for dismissal approval from the UWV or arrange a mutual termination agreement (VSO). In this case, you do not automatically receive transition compensation, but you can negotiate it in the VSO. Since transition compensation is not mandatory in a VSO, both parties can agree on different terms.

Who pays the transition compensation: the temp agency or the company I work for?
In general, Carrière is your employer, meaning they are responsible for paying your salary and, therefore, your transition compensation.

In some cases, Carrière may recover the transition compensation costs from the company where you were placed, but this does not affect you. As long as your temporary contract is not renewed, the transition compensation will be paid directly to you.