What is the obligation to continue paying wages, and when does it apply?
In the Netherlands, employees are entitled to continued payment of wages during illness for a period of two years—more specifically, at least 70% of their last earned wage. The general rule is: “no work, but wages” (Article 7:629(1) of the Dutch Civil Code). This general rule includes an “unless” provision, namely: unless the failure to work falls within the employee’s sphere of risk. For example, when the employee (despite warnings and timely notice from the employer) still fails to meet their own reintegration obligations. A collective bargaining agreement may also stipulate that a two-day waiting period applies in the event of illness, meaning there is no obligation to continue paying wages during that period. Furthermore, the obligation to continue paying wages applies to employers if, for example, there is a temporary shortage of work and the employee consequently does not work all the hours agreed upon in the contract. This falls within the employee’s sphere of risk. Other situations that fall within the employee’s own sphere of risk include strikes, detention, etc. If the employee is suspended or placed on leave, this generally falls within the employer’s sphere of risk—and is therefore at the employer’s risk and expense.