Holiday time. What are the rules in NL

Vacation Days in the Netherlands: What Employers Need to Know

Managing employee vacation days in the Netherlands requires a clear understanding of legal obligations, best practices, and practical considerations. Whether you run a small business or manage HR for a larger company, compliance with Dutch labor law is key — but so is fostering a healthy, well-rested team.

This article outlines the rules and responsibilities around vacation days from an employer’s perspective.

1. Statutory Vacation Entitlement

Under Dutch law, every employee is entitled to a minimum of four times the number of days they work per week. For example:

• A full-time employee (5 days/week) is entitled to 20 vacation days per year.

Employer Tip: Statutory days must be granted and tracked accurately. Failure to comply may result in legal consequences or back payments.

2. Additional (Non-Statutory) Vacation Days

Many employers offer extra vacation days beyond the legal minimum to attract and retain talent. These are defined in:

• Employment contracts, or

• Collective Labor Agreements (CAOs).

Be sure to:

• Clearly differentiate between statutory and extra-statutory days.

• Set a validity period for extra days this is 5 years

  

  
  

3. Accrual Rules

Employees accrue vacation days during:

• Active employment, and

• Paid leave, such as sick leave, maternity/paternity leave, or public holidays.

Vacation accrual may pause during unpaid leave.

Note: Even during long-term sick leave, employees continue to build up statutory vacation days.

4. Approving Vacation Requests

Employees are entitled to take vacation days in consultation with the employer. However:

• Employers must allow statutory days to be taken unless there are serious operational reasons for refusal.

• Refusals must be justified and documented (e.g., critical staffing shortages or peak business periods).

 Best Practice: Set clear internal procedures for requesting and approving time off to manage workloads effectively.

5. Holiday Allowance (Vakantiegeld)

Employers are legally required to pay 8% holiday allowance on an employee’s gross salary. This is usually paid:

• Once a year (most commonly in May or June), or

• Spread out monthly (if specified in the contract).

Ensure this is reflected on payslips and included in employment agreements.

6. Vacation & Illness

If an employee becomes ill during their vacation:

• The affected days should not be deducted from their vacation balance.

• The employee must report their illness immediately, following your company’s sick leave policy.

As an employer, keep clear records and adjust vacation balances accordingly.

7. End of Employment: Payout of Unused Vacation

When an employment contract ends:

• All unused statutory and contractual vacation days must be paid out.

• If the employee took more vacation than they accrued, the overage can be offset against their final salary.

• Avoid disputes by maintaining an up-to-date and transparent vacation register for each employee.

Final Recommendations for Employers

To stay compliant and foster a healthy work environment:

1. Maintain accurate records of accrued, taken, and remaining vacation days.

2. Communicate clearly with employees about vacation policies and expectations.

3. Automate vacation tracking if possible, using HR software or payroll systems.

4. Plan ahead to ensure operational continuity during peak vacation periods.

Offering flexibility and clarity around vacation benefits not only fulfills legal obligations — it also builds trust and contributes to employee satisfaction and retention.