The issue of redundancy payments, one of the most long-running and acrimonious political disputes in this government term, hit the headlines again on Friday after judges decided to lower the compensation given to employees who lose their jobs.

District court judges announced on Thursday that they are to change their formula for determining how much redundancy pay an employee is entitled to.
The trade unions are furious at the decision. The country’s biggest union federation, the FNV, told the Financieele Dagblad the timing of the change, in the midst of the financial crisis, is ‘completely unacceptable’.
New criteria
Under the current system workers up to 40 years old are entitled to one month’s salary for every year of service with the amount increasing with the age of the employee. But as from January 1, employees under 35 will only get half a month’s salary per year and all the age categories will be raised.
The changes will hit young workers the hardest and create a bigger gap between their rights and those of older staff, the paper says. Judges say younger workers’ position on the labour market has greatly improved in recent years so they will find it easier to find a new job.
The position of the employer will also be affected under the new system. If a company’s annual report can prove that a particular redundancy package is too high, the judge will have the power to lower it.
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