When may an employer let a fixed-term contract end without owing a transition allowance? In a recent decision by the Utrecht Subdistrict Court (ECLI:NL:RBMNE:2025:276), an employee worked from 1 May 2024 to 1 November 2024. She claimed a transition allowance of € 520.14. The court held there was no entitlement because the employee herself had indicated she wanted to stop—so the initiative to not continue did not lie with the employer. At the same time, she did succeed on other points: late-paid wages triggered a substantial statutory increase, and unused holiday hours had to be paid out.

What happened in Utrecht?

The fixed-term contract was not renewed. According to the employer, the employee said on 12 September 2024 that she wanted to stop “with immediate effect.” The court found it insufficiently disputed that the initiative to not continue came from the employee. Therefore, no transition allowance.

Other financial items played out differently. Wages for September and October were paid late: a statutory increase totalling € 2,307.10 was awarded, plus interest. Holiday allowance and the year-end bonus were paid within a month after the end of employment as part of the final settlement; therefore, the court reduced the statutory increase on those items to nil. For unused holiday hours (55.61 hours at € 30.20), the employer had to pay € 1,679.42 gross, plus a 50% increase (€ 839.71) and interest. A claim for “compensation hours” failed. The employer also had to provide a proper payslip breakdown, subject to a penalty. Finally, out-of-court collection costs (€ 735.22) and legal costs were awarded.

What does this mean for you?

1) Be crystal clear about stopping or continuing. If you, as the employee, initiate non-continuation, you may lose the transition allowance. Always respond in writing to any notice or letter summarising your words—avoid ambiguity.

2) Check the final settlement and deadlines. Wages must be paid on time; statutory increases can add up quickly when payment is late. Holiday allowance and year-end bonus are often settled within a month after the end of employment; that timing can affect (mitigation of) the increase.

3) Holiday and sickness: count carefully. Sick during scheduled holiday? Those days generally don’t count as holiday unless you agree otherwise. That can make a big difference when hours are paid out.

Bottom line: this case confirms that the key to a transition allowance is who took the initiative not to continue. At the same time, it shows that employees often have strong claims where wages are paid late and for unused holiday hours. In doubt? Get your position  (or settlement agreement) assessed in time.