Last updated: June 2025 | Practical | Excellence in Finance
The holiday season is approaching – are you prepared?
Summer is just around the corner and vacation requests are pouring in. But what are the legal rules regarding vacation days? What are your obligations as an employer, and how can you avoid legal risks? In this blog, you’ll find everything you need to know about the accrual, request process, expiration, and payment of vacation days — including the latest case law. A must-read for every entrepreneur and HR professional.
Statutory and non-statutory vacation days
Every employee is entitled to four times their agreed weekly working hours in statutory vacation days. For a full-time contract (40 hours per week), this amounts to 20 vacation days per year. Many employers also grant additional non-statutory vacation days, which are laid out in the employment contract, collective labour agreement (CLA), or staff regulations.
Note: Employees continue to accrue vacation days during periods of illness or care leave, provided they are entitled to continued salary payment. This accrual obligation also applies during periods of suspension or non-active duty.
Requesting and denying vacation leave
An employee must submit a vacation request themselves, often in writing and within an agreed timeframe. You are required to respond within two weeks. If you do not respond in time, the request is automatically considered approved.
You may only reject a vacation request for compelling reasons, such as a serious disruption to business operations. Examples include the tax filing period at an accounting firm or a peak season in the hospitality industry. Previous absences (such as maternity leave) are not valid grounds for refusal.
Expiration and statute of limitations for vacation days
Statutory vacation days expire six months after the calendar year in which they were accrued. Non-statutory vacation days expire after five years. Exception: if you have not clearly informed the employee or failed to provide a real opportunity to take the leave, the days will remain valid.
According to European and Dutch case law, you as an employer are obligated to inform employees in writing about their vacation balance and upcoming expiration dates.
Vacation during illness: how does it work?
- A sick employee may take vacation leave with the approval of the company doctor.
- The employee will receive 100% of their salary during the vacation period, even if their regular sick pay is lower.
- Vacation leave must be taken based on the employee’s full contractual working hours.
- Vacation leave must be taken based on the employee’s full contractual working hours.
In case of uncertainty about this arrangement, it is advisable to consult a medical professional and to record agreements in the employment contract or collective labour agreement (CLA).
Payment of vacation days upon termination of employment
Upon termination of the employment contract, all outstanding vacation days must be paid out. This applies both in cases of dismissal and for fixed-term contracts.
Is there a negative vacation balance? Then you may only offset this if it has been contractually agreed. Make sure this is clearly arranged in advance through an employment contract or company policy.
Checklist for an effective vacation policy
- Differentiate between statutory and non-statutory vacation days in your administration.
- Inform employees regularly and in writing about their vacation balance and expiration dates.
- Document in writing how vacation leave should be requested and processed.
- Ensure that employees are given timely opportunities to take their vacation days.
A well-organized administration prevents legal disputes and brings peace of mind to your organization.
Need help with your vacation or HR policy?
The rules surrounding vacation days may seem straightforward, but they are often legally complex. That’s why it’s wise to seek advice from an expert who understands your organization.
Practical | Excellence in Finance supports SME employers with HR administration, payroll processing, and advice on employment law. We ensure your administration is accurate, risks are minimized, and you remain compliant with current legislation.