What vacations am I entitled to in the Netherlands?

Every employee in the Netherlands is entitled to vacation with full pay. The right to vacation days is built up during the course of a year. The minimum number of vacation days to which you are entitled after one year is four times the agreed number of days you work each week (usually 4 x 5 = 20 days). If you have not yet been employed for one year by an employer, your vacation days will be calculated proportionately.

You will receive full pay during your vacation. In addition, you are entitled to a minimum vacation allowance. The vacation allowance is payable by your employer and is paid at least once a year (usually in May). Your employer must specify the amount of your vacation allowance on payment in your contract.. The vacation allowance amounts to  a minimum 8% of your income in money (basic wage, bonuses and allowances).

The CAO (collaborative labour agreement) might include other agreements about the number of vacation days, the payment, and the amount of the vacation allowance.

Legal vacation entitlements can be saved up to six months. Any extra vacation entitlements (e.g. if you are entitled to more than the minimum number of vacation days) can be saved up to five years. It is also possible for an employee to exchange vacation days for money from the employer, but neither the employer nor the employee can force the other into such an arrangement.

 

What are the official public holidays in the Netherlands?

Whether you are free from work on public holidays depends on the agreements made between employers and employees in the CAO (collaborative labour agreement) or those in your employment contract.

The Netherlands has one national holiday:

  • Koningsdag (King’s Birthday) on 27 April

In addition, there are a number of generally-observed public holidays:

  • Nieuwjaarsdag (New Year’s Day)
  • Tweede Paasdag (Easter Monday)
  • Hemelvaartsdag (Ascension Day)
  • Pinksteren (Whit Monday)
  • Eerste Kerstdag (Christmas Day)
  • Tweede Kerstdag (Boxing Day, also known as Second Christmas Day)

 

I have some legal issues with my employment contract. Where can I get a legal assistance?

As a first step it may be useful to contact a vertrouwenspersoon (confidential advisor) of the company you are working for and discuss your issues.

If this doesn’t help, you can seek information and advice at het Juridisch Loket (the legal advice office) free of charge. If they conclude that you need professional legal assistance, they may be able to give you some suggestions. Their website lists 30 offices throughout the country as well as contact details. It is possible to send an email by filling in the online form (form is in Dutch only). Sometimes contact by email is not possible. In this case, it is suggested to make a phone call.

It is also possible to go to one of the offices of the Landelijk Netwerk Gratis Inloopspreekuur  Advocaten , a network of lawyers offering legal issues reviewed for free by a lawyer in their neighbourhood. After the initital review, regular fees apply. More information on https://www.inloopspreekuuradvocaat.nl/english/

It is good to know that individual labour disputes in the private sector are generally dealt with by a single court judge. Individual labour disputes in the public sector are regulated by administrative law and dealt with by an administrative court. Labour law is an intricate and complex field subject to changes. It is advisable to consult legal professionals when issues or disputes arise.

 

What is the procedure for claiming unemployment benefits?

Applications for a WW-uitkering (unemployment benefits) are processed by the Government’s Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen – UWV).

The application for a WW-uitkering (unemployment benefits) is a three-stage process as follows:

Step 1

You can apply for your unemployment benefit from 1 week before your last working day and up to 1 week after your last working day. Applying later than this can have an impact that your benefit will be lower. You can apply via the internet at werk.nl/werkzoekenden/uitkering-aanvragen/ww/ (in Dutch only).
You will need a DigiD (digital identification code). If you are not registered with DigiD, you can find out how to get one here. Please note that the application for your DigiD can take up to five days to process.

Step 2

Once UWV has received your unemployment benefits application, you will receive an email from them as confirmation of receipt. You will then receive an email with information about what to do to quickly find a new job and how to use your personal UWV environment (Mijn UWV) and the Werkmap. Werkmap is the environment where you can place a CV, look for jobs, and track your job search activity.
You can track the status of your application for unemployment benefits on Mijn UWV if you are logged in with your DigiD (mijn.uwv.nl/iam/inloggen/).
UWV will contact you if they need extra information from you in order to assess your request.

Step 3
UWV will get back to you with a decision letter within 4 weeks after you’ve submitted your application. The letter will contain information on whether you will receive an unemployment benefit, how high this benefit will be, and how long the benefit will last.
When you receive unemployment benefits, UWV will be monitoring that you are actively seeking a job. One of your obligations as a job seeker with unemployment benefits is to submit your job search activities to UWV via your Werkmap on werk.nl. Make sure to apply for a job at least 4 times per 4 weeks.

What is the transitievergoeding (transition compensation)? And do I qualify for it?

As of 1 July 2015, the transitievergoeding (transition compensation) was introduced. This compensation replaces the severance payment in cases of termination of an employment contract by the employer either via a court or the Government’s Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen – UWV).

You are entitled to a transition allowance if you are dismissed or if the temporary contract is not renewed on your employer’s initiative. This right also exists if you resign yourself due to serious culpable acts or omissions on the part of your employer.
From 1 January 2020, you are entitled to a transition payment upon dismissal from the first day of your employment contract. The transition compensation is calculated as follows:

From your first working day, you will receive 1/3 monthly salary per entire year of service.
The transition payment for the remaining part of the employment contract is calculated according to the formula: (gross salary received on the remaining part of the employment contract / gross monthly salary) x (1/3 gross monthly salary / 12). This formula is also used to calculate the transition allowance if the employment contract has lasted less than a year.

Example: An employee is dismissed during his probationary period. The employment contract lasted a total of 5 days. The gross salary over these 5 days is € 800. This is considered as the monthly wages.
The calculation is then as follows: (€ 800 / € 800) x (1/3 x € 800) / 12) = 1 x (€ 266.67 / 12) = € 22.22. The employee will, therefore, receive € 22.22 transition compensation for the 5 days that he was employed.

If the dismissal took place after 1 January 2020, you can make use of the Transition Allowance Calculation Tool (in Dutch only) on rekenhulptransitievergoeding.nl/.

There are some exceptional cases in which the transition compensation does not apply, as follows:

  • you are less than 18 years of age on dismissal and you have not worked more than 12 hours per week during your employment,
  • your temporary contract is expiring, and you and your employer agree in advance that your contract will be continued within a maximum of six months and that the new contract can be terminated prematurely,
  • your employer is bankrupt, has a moratorium, or is involved in a debt rescheduling scheme for natural persons,
  • you have reached the age of retirement,
  • you have been dismissed due to a serious culpable act such as theft or fraud,
  • your collective labour agreement (collectieve arbeidsovereenkomst – CAO) contains an equivalent provision for a transition payment.

For further information, please visit the government’s website (in Dutch only):

www.rijksoverheid.nl/onderwerpen/ontslag/vraag-en-antwoord/hoe-hoog-is-de-transitievergoeding-als-ik-word-ontslagen

What type of benefit is available if I don’t have any revenue/income?

The Wet Werk en Bijstand – WWB (Work and Social Assistance Act) grants a minimum income to anyone legally residing in the Netherlands who has insufficient means to support themselves. Social assistance is provided to a household and not to an individual. Therefore, if someone within the household has an adequate income, the household is not eligible for assistance. This means that someone without income living with a partner or parents with adequate income is not entitled to a grant. Social assistance is exclusively reserved for those in financial difficulty (due to no household income) to prevent hardship or poverty. Applications for social assistance should be submitted to your municipality.  Depending on your country of origin and the time you have been in the Netherlands, applying for WWB might result that the Immigration and Naturalisation Service (Immigratie- en Naturalisatiedienst – IND) withdraws your residence permit.

 

What are my legal rights and obligations when I have an on-call contract?

An oproepkracht (on-call employee) only comes to work when called upon to do so. The rules that apply depend on the type of contract. For instance, there are rules with on payment when no work is available, minimum hours guarantee or minimum wages for hours worked.

More information about on-call contracts is available here .

What kind of benefit is available if I become ill?

Employers must pay at least 70% of the salaries of sick employees for the first two years. In the first year, sometimes 100% of the salary is paid. The first two days of sick leave may be at the expense of the employee, but this needs to be set out in the employee’s contract or in the collectieve arbeidsovereenkomst – COA (collective labour agreement).

The Ziektewet- ZW (Sickness Benefit Act) serves only as a ‘safety net’ for employees who do not have an employment anymore and in some special situations such as:

  • Employees who have lost their job in the first or second year of their sickness
  • Temporary workers on sick leave who do not have a permanent contract with their employment agency
  • Home workers
  • Student trainees
  • Unemployed persons who receive a benefit from the Government’s Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen – UWV)
  • Sickness prior to or following the 16 weeks of maternity benefit (female employees are entitled to benefits for pregnancy and delivery under the Wet arbeid en zorg (Work and Care Act) amounting to 100% of the daily wage for a period of at least 16 weeks)
  • Bankruptcy of the employer responsible for continuing to pay the salary
  • In the event of sickness in the first five years of having taken on a person who is partly incapacitated for work
  • Sickness due to organ donation

After 104 weeks of sickness (two years), a review takes place to determine whether the employee qualifies for the benefit under the Wet Werk en Inkomen naar Arbeidsvermogen – WIA (Work and Income according to the labour capacity act). See more information on this section.

If you become ill in the Netherlands and want to recuperate in your own country, you need permission from your employer’s health and safety service (ARBO service) or from UWV. A doctor checks if this will not delay your recovery.

Applications for benefit under the sickness benefit act have to be submitted to the UWV. You can contact them on 0900 9294, or visit their website (in Dutch only) at: www.uwv.nl.

What kind of benefit is available if I remain ill for a long time?

The period of sick leave during which the statutory wage will continue to be paid is two years. During this period, both the employer and the disabled worker must do all they can to improve the worker’s chances of returning to work and to make use of all opportunities to reintegrate the worker into the employment process. After two years, there is a review for Wet Werk en Inkomen naar Arbeidsvermogen – WIA (Work and Income according to the labour capacity act) qualification.

Under this Act, a fundamental distinction is made between employees who are both fully and permanently disabled after two years and those who are temporarily disabled.

An employee who is both fully and permanently incapacitated is no longer able to earn their own living; due to sickness, their work capacity has diminished to less than 20% income protection under the regulation governing income protection for individuals registered as completely disabled, Regeling inkomensvoorziening volledig arbeidsongeschikten – IVA.

A person can also qualify for IVA before the two years of sick leave have expired if it is clear that the relevant criteria have been met (i.e. the individual is totally and permanently incapacitated). The IVA is 75% of the last full daily wage.

Employees with a partial occupational disability can be divided into employees who after two years of sick leave are less than 35% disabled and employees with a substantial occupational disability, i.e. who are at least 35% incapacitated. Employers are responsible for maximising the employment capacity of employees who are less than 35% occupationally disabled. After two years of sick leave, workers who are partially disabled (at least 35%) may qualify for disability benefits under  Regeling werkhervatting gedeeltelijk arbeidsongeschikten – WGA (the regulation governing the re-employment of partially disabled workers). The benefit depends on how much you are disabled and – if you still have a job – your wages.

Applications for the WIA have to be submitted to the Government’s Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen – UWV) at: www.uwv.nl/particulieren.

My payroll agency does not arrange pensions for its employees. As I am not a Dutch citizen, I am having a serious issue with a pension arrangement. Can you advise me on this matter? What should I do to set up a scheme?

During the years you have been living in the Netherlands, you and your partner build up an Algemene Ouderdomswet – AOW (state pension) , that is a basic state pension. In addition to this, you can set up a private pension for yourself and your partner. You can do this via a bank or an insurance company. They can advise you about the possibilities in your situation. Find more information about it at the  Social Security Office (Sociale Verzekeringbank – SVB) website. That is the organisation that implements national insurance schemes in the Netherlands: www.svb.nl.

What is the pension age in the Netherlands and who is entitled?

The Algemene Ouderdomswet – AOW  is a basic state pension insurance scheme. Everyone who lives or works in the Netherlands is insured automatically, regardless of nationality. As a rule, everyone who has reached the pension age and lives or has lived in the Netherlands is entitled to an AOW pension. You will be paid a pension from the day you reach the pension age that applies for you. If you do not live in the Netherlands at that time, you may only get a part of your AOW, depending on the treaties between the Netherlands and the country where you live.

For every year that you are insured, you build up rights to 2% of the full AOW pension. If you have been insured for the full number of years (which is 50) you will get a full AOW pension. If you have lived or worked outside the Netherlands, you are likely to have been uninsured during certain periods and may get a lower pension as a result.

In 2021 the statutory retirement age is 66 years and 4 months. In 2022 it will increase to 66 years and 7 months; in 2023 to 66 years and 10 months; in 2024 to 67 years. As from 2025 the pension age will be linked to the average life expectancy and thus could be greater than 67. Five years before your retirement date, the pension age will be final. You can calculate your expected retirement date on https://www.svb.nl/en/aow-pension/aow-pension-age/your-aow-pension-age.

The AOW is not designed to be a standalone income for retirees in the Netherlands and should be supplemented by a company/occupational pension (labour-based pension) or private pension scheme, or both.