Tracking Vacation Days: The Responsibility Lies with the Employer

Vacation is wonderful, but for employers, keeping track of vacation days can be quite a headache. Who keeps track of which days are taken? What if a dispute arises at the end of the employment relationship? And how can you, as an employer, avoid having to pay for days you believe were taken long ago? Recent case law shows that sloppy or missing leave records almost always result in the employer bearing the cost and risk. In this blog, we’ll explain three court rulings and provide concrete action steps to prevent legal liability.

The employee’s records take precedence if the employer cannot provide any documentation

In a recent ruling by the Overijssel District Court, a former employee demanded payment for 18.5 unused vacation days as part of his final settlement. He had kept track of these days himself, while the employer was unable to provide any evidence to refute his claim. The judge ruled that, in such cases, the employee’s records are decisive and awarded an amount of €1,966.09.

The lesson is clear: if, as an employer, you cannot provide complete records, and the employee submits a substantiated statement, you will come up empty-handed in court.

Vacation days accrued during sick leave may not be deducted without good reason

In another case, there was a dispute between an employee and a notary’s office. The employee had been on long-term sick leave and, according to the employer, could have taken vacation during that period. The employer therefore deducted four weeks of vacation from the employee’s accrued balance. The judge did not agree with this. Not only did the employer lack proper vacation records, but it had also failed to inform the employee that accrued vacation days could expire during sick leave if they were not taken in a timely manner. And that, the court emphasized, is an explicit obligation of the employer. As a result, the full amount of vacation hours had to be paid out after all, totaling €13,836.92.

Offsetting alleged negative hours? Not without justification

In a third ruling, an employer sought payment after the employment relationship ended for 14 days of leave that the employer claimed the employee had taken in excess. According to the employer, the employee was required to repay €1,345.71. The basis for this claim? The employer had reviewed which days had fewer than 8 hours recorded in the time-tracking system. The small claims court judge decisively rejected this claim. First, the system used was intended for billable hours and not for leave tracking. Second, the employee was never systematically provided with an overview of his leave balance during his employment. According to the judge, this meant there was no proper leave record-keeping, and the shortfall in leave hours could not be proven.

Three Action Items for Employers

The common thread in these rulings is crystal clear: it is the employer’s responsibility to carefully track vacation days. If you fail to do so, you bear the risk. So make sure to do the following:

Up-to-date and comprehensive leave tracking. Always have employees submit leave requests through a standardized system and keep consistent records of them. Record the number of days taken and accrued each year.
Regular reporting to employees. Provide employees with a periodic overview of their leave balance (for example, quarterly or semiannually) for review and approval. This prevents disputes later on.
Information on expiration dates. Actively inform employees that statutory vacation days expire after six months. Be sure to do this in writing as well, so that you can demonstrate that you have fulfilled your duty to provide information.

Conclusion

Whether it involves days off taken due to illness, alleged under-hours, or forgotten vacation days: the court takes a critical look at what the employer has or has not documented. In all cases where the employer was unable to provide clear records, the employee was found to be in the right. The financial consequences of this can be significant. The message is simple: as an employer, you bear ultimate responsibility for leave records. Invest in a good system, provide your employees with transparency, and be mindful of your obligations to provide information. This prevents unpleasant surprises and costly legal proceedings.

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 vacation days. Please feel free to contact us .

April 2025