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Suspending or stopping wages: here's the difference

When an employee fails to comply with the rules around sickness or reintegration, you as an employer may take action. But beware: there is a big difference between suspending and stopping pay. A wrong choice can cost you dearly as an employer.

What does salary suspension mean?

Suspending pay means that you temporarily withhold pay until you can determine whether the employee is truly disabled. For example, because he or she does not allow himself or herself to be checked by a company doctor. If it turns out later that the employee was indeed sick and still cooperates with a check-up or reintegration, you must pay the salary retroactively.

Suspension is thus a temporary measure, intended to clarify the situation. The right to pay remains in place as long as it appears that the employee was justified in calling in sick.

When are you allowed to stop pay?

Stopping pay is a more severe measure. In this case, the right to wages lapses completely over the period in which the employee fails to fulfill his obligations. You then do not have to pay anything afterwards.

Quitting is allowed, for example, if the employee:

  • impedes his healing
  • refuses to perform suitable work without good reason
  • Failure to cooperate in the preparation or updating of the plan of action

These situations show that a wage freeze is allowed only if there is genuine culpable behavior.

The consequences of taking the wrong action

If you choose the wrong sanction as an employer, it can have major consequences. If you stop wages when they should have been suspended, you still have to pay them. Even if the employee did not meet his obligations in the first place.

Conversely, the same applies: if you choose to suspend when you should have stopped, then the employee wrongly retains his wage entitlement. You then run financial risks that you could have avoided.

Ensure clear communication

What is important is that, as an employer, you let the employer know immediately and in writing what action you are taking, and why. The motivation must be clear. If you do not do this or if you wait too long, your right to apply the measure expires.

In conclusion

The choice between suspension and termination is not a detail, but a crucial legal decision. Only by acting carefully will you avoid losing out as an employer after the fact.

Are you dealing with sick leave or in doubt about the right approach? Then contact us. We will be happy to help you take the right steps.


This blog was written by mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs and employees on a daily basis with a variety of employment law issues. From dismissal cases to drafting watertight contracts and regulations - with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn's page.

Arbeidsadvocaat.nl is happy to think with you if you have questions about suspending or stopping wages. Please feel free to contact us . 

April 2025

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