Global Mobility & Payroll 14 February, 2023

Inform your employees about statutory vacation days timely

Vacation days
Crowe Peak/ Knowledge Hub/ Global Mobility & Payroll/

Inform your employees about statutory vacation days timely

Please be informed that it is very important to inform employees that their statutory vacation days will lapse if they do not use those days. According to Dutch law, employees have the right to use their statutory days of annual leave within a period of six months after the end of the year in which they were accrued. The purpose behind this is to ensure that employees have a break from work to relax and recharge, which in turn helps them to come back to work with renewed energy and improved focus.

Employer’s responsibility

According to recent case law, the employer is responsible for informing employees about the deadline related to their statutory vacation days. In case the employer fails to inform the employee, and the employee will not use the vacation days, the vacation days will not lapse six months after the end of the year in which they were accrued. This means they still can be claimed. In its turn, this may lead to legal disputes and can have a negative impact on the employer-employee relationship, which is not in the best interest of either party.

Information employees about vacation days

To avoid any misunderstandings and to ensure that employees are aware of their rights and obligations,  employers are strongly advised to take proactive steps in informing their employees about the deadline related to statutory vacation days. For example, the employer can inform the employees in February and May 2023 that the statutory vacation days accrued in 2022 will lapse on 1 July 2023, if they will not be used. This can be done through various means, such as personal letters, email or even internal newsletters. The objective is to ensure that employees are informed and can make well-informed decisions about using their statutory vacation days. By keeping employees informed about their rights and obligations, employers can foster a healthy and productive workplace, which will benefit both parties.

Accurate Record Keeping

Moreover, it is essential to maintain accurate records of the employee’s annual leave, including the days taken and the days remaining. This will help to avoid misunderstandings or disputes regarding the employee’s entitlement to vacation days and will ensure that the employer is following relevant legislation and regulations.

Finally, the importance of proper management of annual leave for the benefit of both the employer and the employee should be emphasized. By being proactive in taking the necessary steps to inform employees about their rights and obligations and maintaining accurate records, employers can avoid legal disputes and maintain a positive work environment.

If you have any questions, please feel free to reach out to our GMS-team.

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