Q: I worked in sales and got fired. Some of my commission was earned before I left, but the company paid it later. Do I still get that counted in my transition compensation?
"Yes. The court in the Netherlands just ruled that what matters is when you earned the commission, not when it was paid. So if you closed the deals before your contract ended, those commissions count in your transition payment—even if the money came later."
Utrecht, July 24, 2025, but let’s pause here.
The Central Appeals Tribunal has spoken. A new ruling on how we calculate transition payments when commission is part of the salary.
I know, compensation, percentages, and decrees may not sound like the most sparkling topic. But stay with me. Behind these numbers lies a story that touches every small business owner and every employee who works with heart, effort, and yes, sometimes commission.
Let’s unpack it together.
Why does this matter?
A transition payment (transitievergoeding) is that farewell handshake when an employment contract ends. It’s meant as recognition and as support for the next step.
But here’s the tricky part: when an employee earns not only a base salary but also commissions—think sales bonuses linked to turnover, how do we calculate fairly?
Do we count only what was paid out in the last 12 months?
Or do we look at what the employee actually earned rights to, even if the money flowed in later?
This was the heart of the case.
The story in plain words
In 2022, an employer dismissed an employee and paid the transition payment.
The employee had a salary + commission setup.
The employer asked UWV for reimbursement (because sometimes, especially in older employee cases, that’s possible under Article 7:673e of the Civil Code).
UWV said: “Sure, but we calculate differently. We only count the commissions actually paid in those 12 months.”
The employer said: “No, we must count the commissions earned in those 12 months, even if paid later.”
Lower court agreed with the employer.
UWV appealed.
Central Appeals Tribunal now confirms: it’s the earned rights that matter, not the cashflow timing.
The lesson: Entitlement beats payment
This is big. Why? Because many commissions are delayed:
You close a deal in September, but the commission is paid in December.
Or the final calculation of yearly bonuses comes after the contract ends.
According to the Tribunal, those commissions still count toward the transition payment, if the right to them was earned in the reference period (the 12 months before dismissal).
What this means for micro and small entrepreneurs in NL
Let’s bring it home. If you’re running a small business, you might already feel overwhelmed by rules, taxes, and now this. Here’s what this ruling means for you:
Budgeting matters.
Don’t just look at what you physically paid out when calculating transition compensation. Look at what your employee earned.
Records are everything.
Keep clear administration of when commissions are earned, not just when they’re paid. This helps you avoid surprises.
Fairness goes both ways.
Employees deserve recognition for the work they did, even if the paycheck came later. This is about trust and justice in the employment relationship.
UWV reimbursements may differ.
If you apply for reimbursement, the calculation must now follow this ruling. Be prepared for recalculations and keep documentation ready.
And for employees
If you are an employee reading this, here’s your takeaway:
Your hard work counts, even if the payout was delayed.
If you earned it in those 12 months, it’s part of your transition compensation.
This ruling gives you clarity and fairness.
The bigger picture
Numbers often look cold. A formula, an article of law, a court case. But behind every transition payment there’s a story:
An employee saying goodbye, maybe after years of service.
An employer balancing gratitude, law, and financial reality.
A team watching how fairness is practiced.
This ruling reminds us that work is more than timing on a payslip. It’s about recognizing the moment value is created, when the employee made the effort that generated results.
Practical tip for entrepreneurs
When setting up commission structures, make it crystal clear:
When is the right to commission considered earned?
How do you record it?
Can your payroll system (or your salarisadministratie partner) trace this easily?
The clearer the rules, the smoother the goodbye will be, without courtroom drama.
Closing thought
The Tribunal has set a fair path: look at the why behind the commission, not just the when of payment. For employers, it’s another layer of diligence. For employees, it’s a nod of respect.
At Xtroverso, in our HR & salarisadministratie corner, we see this ruling as more than law. It’s a story of trust, fairness, and the ongoing dance between numbers and people.
Because behind every payslip, every formula, and every tribunal ruling, there is a human being.
SOURCE: ECLI:NL:CRVB:2025:1011
If you are an entrepreneur, how clear are your commission agreements today? And if you are an employee, do you know when your commission is truly “earned”?
Head of HR-Salarisadministratie
Laura De Troia leads Xtroverso’s payroll and contract practice with a dual focus: technical mastery and human fairness. With extensive experience in HR and compliance, she ensures that salaries, contracts, and employee records are not just managed, but safeguarded.
