It’s a common phenomenon among young people: taking a gap year to travel, explore, or take a break from school or work. But what if it’s not your child, but an employee who comes to you asking to take a year off? As an employer, you’re not obligated to grant this request outright, but in an era when being a good employer is becoming increasingly important, it’s wise to handle such a request carefully. In this blog, we outline the legal and practical considerations regarding unpaid leave.
What does a gap year or unpaid leave entail?
Unpaid leave means that an employee temporarily stops working without being entitled to wages. This leave can be requested for a variety of reasons: from a sabbatical to a long trip or personal circumstances. Legally speaking, there is no general provision that automatically entitles employees to unpaid leave. A legal basis exists only for specific types of leave under the Work and Care Act, such as parental leave. Some collective bargaining agreements do provide for unpaid leave, and those provisions must, of course, be followed.
A Request for Unpaid Leave: How Should You Handle It?
If you, as an employer, receive a request for unpaid leave, it’s important to have a few things in order:
An employee must submit their leave request in a timely manner so that you have enough time to arrange for a replacement. In doing so, you must take into account the workload of their colleagues. It is therefore advisable to establish clear internal rules regarding how often and for how long unpaid leave may be taken. It’s also wise to specify the circumstances under which you may deny a request, and what happens if the leave is interrupted or terminated early.
Always discuss the reason for and duration of the leave with the employee. Agree on what will happen upon their return: will the employee resume their previous position, or is there only a guarantee of work but not a guarantee of employment? Be especially vigilant if the employee appears to be requesting the leave to escape work pressure or stress. This could indicate an impending absence due to illness, in which case leave is not the appropriate solution.
What does unpaid leave mean in terms of employment conditions?
In principle, an employee does not receive a salary during unpaid leave. However, in some cases, a collective bargaining agreement or company policy may allow for the continued payment of (part of) the salary. Pension accrual is not automatically suspended either, but this depends on the pension plan. In some cases, an employee may continue to accrue pension at their own expense, but they must be informed of this in advance.
In addition, an employee typically does not accrue vacation days or vacation pay while on unpaid leave. Other benefits, such as a company car or laptop, may be suspended during the leave. Be sure to clearly document these types of arrangements in advance.
If an employee becomes ill during their leave, they are generally not entitled to continued pay. Therefore, make arrangements in advance regarding the consequences of illness: will the leave be suspended or terminated, and what does that mean for the remainder of the leave period?
Obligation to Provide Information to Employees
As an employer, you have a duty to fully inform the employee about all the consequences of unpaid leave. This applies not only to employment terms and conditions, but also to potential consequences regarding benefits or municipal compensation. The employee must report any changes in their income to the appropriate authorities in a timely manner.
Consultation with the Works Council
As an employer, do you want to establish, amend, or eliminate a policy regarding unpaid leave? In many cases, you will need the consent of the works council. This is required under the Works Councils Act. Be sure to involve the works council in this process in a timely manner.
Conclusion
Unpaid leave sounds simple, but the legal and practical aspects of it require clear agreements and a well-informed employee. By establishing a policy in a timely manner, engaging in dialogue, and following the proper procedures, you, as an employer, can handle an employee who wants to take a temporary break from work with care. A well-organized gap year can thus also be in the best interest of your organization.
This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight contracts and policies—with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn’s page.
Arbeidsadvocaat.nl is happy to help you if you have any questions about a gap year or unpaid leave. Please feel free to contact us .
April 2025