Who pays outplacement?

When an employee loses their job due to reorganization, illness, or dismissal, it is often outplacement offered.
But who actually pays for that: the employer or the employee himself?

In this article, you can read all about who bears the costs of outplacement,
how the transition payment can be deployed and in which situations employers must or voluntarily contribute.

What is outplacement?

Outplacement is professional guidance to new work, intended for employees who lose their jobs.
A coach helps you process the dismissal, rediscover personal qualities and find suitable, sustainable work.

Read more about what an outplacement process entails.

Who pays outplacement in case of dismissal?

In most cases, you pay the employer (a large part of) the costs of the outplacement process.
This can be done in various ways:

• Through a settlement agreement, which includes the process as part of the dismissal.
• Through a social plan in case of reorganization, in which agreements about outplacement have been laid down.
• Through the transition payment, which can (partially) be used to fund the process.

Outplacement is not required by law for employers, but offering it shows good employment and often prevents lengthy procedures or tensions.

Also read:
- Settlement agreement: what should it contain?
- Transition payment: how does it work and what can you do with it?

What does outplacement cost the employer?

The costs of outplacement vary by process.
On average, they are between €2,000 and €6,000, depending on the duration, intensity and personal guidance.

For employers, these are deductible operating expenses, which makes it financially more attractive.
In addition, it also provides social benefits: satisfied former employees and a positive employer image.

Also read: What does an outplacement process cost?

Can an employee pay for outplacement himself?

Yes, you can.
When an employer does not offer outplacement, an employee may finance a process yourself with the transition payment.
The law allows this allowance to be used for training, reorientation or guidance to other work.

💡 Hint: It is smart to explicitly lay down the outplacement budget in the settlement agreement.
This way, you can avoid discussions afterwards about the amount or payment of the process.

When is the employer obliged to pay?

There is no general legal obligation, but there are situations where outplacement mandatory or usual is:

• Bee reorganization or collective dismissal, as part of a social plan.
• Bee long-term illness (2nd track), when relocation within the company is no longer possible.
• when agreements are in the collective labor agreement or an internal HR arrangement.

Read more about when outplacement is mandatory.

Summary: who pays what?

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What if the employer does not offer outplacement?

If the employer does not offer a route, you can do this yourself requests or proposals during negotiations.
For example, when discussing the settlement agreement or the final bill.

A well-founded request — explaining how outplacement increases your chances of finding new work — is often honored.

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