It's a well-known phenomenon among young people: a gap year to travel, explore or take a break from study or work. But what if it is not your child, but an employee who knocks on your door asking you to take a gap year? As an employer, you are not obliged to simply allow this, but at a time when being a good employer is becoming increasingly important, it is wise to handle such a request carefully. In this blog we outline the legal and practical issues surrounding unpaid leave.
What does a gap year/unpaid leave of absence entail?
Unpaid leave means that an employee temporarily stops working without the right to pay. This leave can be requested for many reasons: from a sabbatical to a long trip or personal circumstances. Legally, there is no general regulation that automatically entitles employees to unpaid leave. Only specific forms of leave under the Work and Care Act, such as parental leave, do have a legal basis. Some collective bargaining agreements do allow for unpaid leave, and those provisions must of course be followed.
A request for unpaid leave: how to handle it?
If you as an employer receive a request for unpaid leave, it is important to have a few things in place:
An employee must submit their leave request in time for you to have room to arrange a replacement. In doing so, you must take into account the workload for colleagues. It is therefore advisable to draw up clear internal rules about how often and for how long unpaid leave can be taken. It is also wise to name situations in which you may refuse a request, and what happens if the leave is interrupted or stopped in the interim.
Always discuss the reason and duration of the leave with the employee. Agree on what will happen after they return: will the employee resume their old job, or is there only a work guarantee but no job guarantee? Be especially alert if the employee appears to be requesting the leave to escape work pressure or stress. This may indicate impending sick leave where leave is not the right solution.
What does unpaid leave mean for working conditions?
During unpaid leave, in principle, the employee receives no salary. However, sometimes a collective bargaining agreement or company regulation allows (part of) the salary to continue to be paid. Pension accrual is also not automatically stopped, but this depends on the pension scheme. In some cases, an employee can continue to accrue pension at their own expense, but they must be informed about this in advance.
In addition, an employee normally does not accrue vacation days or vacation pay during unpaid leave. Other amenities, such as a leased car or laptop computer, may expire during the leave. Make sure you clearly define these types of arrangements in advance.
If the employee falls ill during his/her leave, there is usually no right to continued payment of wages. Therefore, agree in advance on the consequences of illness: will the leave then be suspended or terminated, and what does that mean for the rest of the leave period?
Duty of information towards the employee
As an employer, you have a duty to properly inform the employee of all the consequences of unpaid leave. This applies not only to conditions of employment, but also to possible consequences for benefits or municipal compensation. The employee himself must report changes in his income to the appropriate authorities in a timely manner.
Consultation with the works council
As an employer, do you want to draw up, amend or scrap a regulation on unpaid leave? Then in many cases you need the consent of the works council. This follows from the Works Councils Act. Make sure you involve the works council in time.
Conclusion
Unpaid leave sounds simple, but its legal and practicalities require clear agreements and a well-informed employee. By drawing up policies in time, entering into the conversation and following the right arrangements, you as an employer can deal carefully with an employee who wants to temporarily leave work. A well-regulated gap year can thus also be in the best interest of your organization.
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 a gap year or unpaid leave. Please feel free to contact us .
April 2025
