A labour inspector of the Social Affairs and Employment Inspectorate (ISZW) pays you a visit.…
In the Netherlands, we are blessed with a minimum of 20 paid days’ holiday in case of a full-time employment. Most Dutch people will probably take a few days off around Christmas and the New Year.
During holidays, employees retain their right to wages. The holiday wages have to correspond to the ‘usual wages’.
But not every employee receives the same pay every month; sometimes a variable component constitutes a substantial part of the wages.
The question therefore is what ‘usual wages’ must be paid.
When variable wage components (not being expenses) are not paid during holidays, this would result in a deferred financial disadvantage after the holiday.
If these variable wage components constitute an important part of the payment of wages, not paying the variable pay may form an obstacle to take holiday. For this reason, the European Court of Justice has considered that this is in violation with the objective of a European directive in this respect and that it will not be sufficient to continue the payment of the fixed wage components.
So not only the fixed wages, but also variable components, like commissions, a fixed allowance for shiftwork or overtime should continue to be paid if this forms a significant part of the wages.
Because these components are variable, the payment must then be based on an average over a representative period.
If you are wondering whether the correct wages have been paid to you during your holiday, please feel free contact us, without any obligation.