Introduction
A performance bonus, an extra day off, or temporary use of a leased car: these are all examples of “perks” that an employer can grant an employee. But what if such a perk is repeated year after year? Does it then become part of your terms of employment? And can your employer simply discontinue it? In this blog, you’ll learn when an occasional benefit turns into a permanent right.
A temporary benefit or a permanent right?
Many employers occasionally give their employees a little something extra: a bonus after a good year, an extra day off around the holidays, or a one-time payment for exceptional dedication. That is, of course, a nice gesture of appreciation. But if you receive that benefit not as a one-time occurrence but on a regular basis, it can become more than just a perk under labor law: it may then have become a term of employment.
This distinction is important. An employer can generally modify or terminate a one-time benefit without consultation. A term of employment, on the other hand, cannot be revoked without good cause.
When is something considered a term of employment?
Case law considers a number of factors to determine whether a temporary benefit has “evolved” into a term of employment:
- Frequency and consistency: For example, if you have received an end-of-year bonus for five consecutive years, you can reasonably expect this to continue.
- Trust and Expectation: If a benefit is tacitly granted for many years without repeatedly emphasizing that it is a one-time benefit, this can lead to a legitimate expectation that it is permanent.
- Context and explanation: If it is explicitly stated that the benefit is temporary or linked to special circumstances (such as a year affected by the pandemic or an exceptional workload), this indicates that it is not a permanent term of employment.
Here’s an example of a bonus, but there’s more
A bonus is a classic example of a benefit that can become a term of employment, but the same applies to other arrangements. For example:
- fixed expense allowances;
- (structural) unpaid leave;
- the use of a leased car;
- lunch allowances or work-from-home allowances.
If you receive these benefits on a regular basis, and they are not explicitly designated as temporary, your employer cannot simply withdraw them. If your employer does so anyway, you can object to this decision and may even be entitled to reinstatement or compensation.
Conclusion
What starts as a token of appreciation can, over time, become a legal employment condition. Have you been receiving a bonus or other benefit for several years in a row? If so, there’s a good chance this is no longer a “one-time perk.” It’s worth checking what has been agreed upon in this regard in your employment contract, employee handbook, or previous communications. If in doubt, it’s advisable to seek legal advice.
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 agreements 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 bonuses. Please feel free to contact us .
April 2025