Severance Pay and Tuition Fees: Legal Advice

Questioner

My permanent contract is being terminated by means of a termination agreement. Because I have worked there for 3 years, I will receive 3 months' salary as severance pay. Now I would like to retrain and receive the severance pay as study expense compensation. From a tax perspective, it will be more useful and I can put more into my studies. My employer will pay the study expense compensation directly to my trainer by means of an invoice. When people talk about 3 months' salary that you will receive, are you talking about gross or net salary? There is quite a difference.

Lawyer

This concerns gross monthly salaries of which the net equivalent is paid out. To avoid misunderstandings, discuss with your lawyer exactly what amount incl. VAT is reimbursed for study costs. Record that amount in the agreement. And remember that with this construction the employer does not have to pay employer's charges, so that gives you some room for negotiation. If you do not yet have a lawyer, it is worth hiring one. There is much more at stake than just the amount of compensation. Please feel free to contact us without any obligation.