If an employee fails to comply with the rules regarding sick leave or return-to-work, you, as an employer, may take action. But be careful: there is a big difference between suspending and terminating pay. Making the wrong choice could end up costing you dearly as an employer.
What does it mean to withhold wages?
Suspending wages means that you temporarily withhold the employee’s pay until you can determine whether the employee is truly unable to work—for example, because the employee refuses to undergo an examination by a company physician. If it later turns out that the employee was indeed sick and subsequently cooperates with an examination or reintegration process, you must pay the wages retroactively.
Suspension is therefore a temporary measure intended to clarify the situation. The right to wages remains in effect as long as it appears that the employee was justified in reporting sick.
When can you stop paying wages?
Suspending wages is a more severe measure. In this case, the right to wages is completely forfeited for the period during which the employee fails to fulfill his or her obligations. You are then no longer required to make any payments retroactively.
Termination is permitted, for example, if the employee:
- hinders his recovery
- refuses to perform suitable work without good reason
- does not cooperate in drafting or revising the action plan
These situations show that a wage freeze is permissible only if there is truly culpable conduct.
The Consequences of an Inappropriate Measure
If you, as an employer, choose the wrong disciplinary measure, it can have serious consequences. If you withhold wages when you should have suspended the employee instead, you will still have to pay the wages—even if the employee initially failed to meet his obligations.
Conversely, the same applies: if you opt for a suspension when you should have terminated the employment, the employee will wrongfully retain their right to wages. You will then face financial risks that you could have avoided.
Ensure clear communication
It is important that, as an employer, you immediately notify the employee in writing of the action you are taking and the reason for it. The rationale must be clear. If you fail to do so or wait too long, you lose the right to implement the measure.
In conclusion
The choice between suspension and termination is not a minor detail, but a crucial legal decision. Only by proceeding with care can you ensure that, as an employer, you don’t end up at a disadvantage later on.
Are you dealing with employee absenteeism due to illness, or are you unsure about the best approach? If so, please contact us. We’d be happy to help you take the right steps.
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 suspending or discontinuing wages. Please feel free to contact us .
April 2025