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Home " Dictionary " Wage payment obligation

Payroll obligation

What is the wage payment obligation and when does it apply?

Employees in the Netherlands are entitled to continued payment of wages during illness for a period of two years, more specifically to at least 70% of their last-earned salary. This is because the main rule is: "no work, but wages"(Article 7:629 paragraph 1 BW). This main rule has an unless clause, namely: unless the failure to work falls within the employee's sphere of risk. For example, when the employee (despite warnings and a timely notice to that effect by the employer) still fails to meet his own reintegration obligations. A collective bargaining agreement may also provide that two waiting days apply in case of illness, as a result of which there is no obligation to continue to pay wages during that period. Furthermore, the obligation for employers to continue to pay wages applies if, for example, there is temporarily insufficient work and the employee therefore does not work all the hours agreed in the contract. This is within the employee's sphere of risk. Other situations within the employee's sphere of risk are strike, detention, etc. If the employee is suspended or placed on suspension, this again is usually within the sphere of risk - and therefore at the risk and expense - of the employer.

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