Introduction
When an employee fails to fulfill his reintegration obligations, an employer can apply a wage freeze. This means that the right to wages for that period lapses. However, it is essential that the employer clearly communicates the measure to avoid subsequent wage claims.
Wage suspension: deferral of payment
Pay suspension means that an employee is still entitled to wages, but payment is temporarily delayed. This happens, for example, when an employee calls in sick and fails to cooperate with monitoring requirements, such as appearing at the company doctor's office. Once the employee still cooperates, wages must be paid retroactively. Thus, wage suspension is a temporary measure and does not permanently affect the right to wages.
Wage freeze: permanent loss of pay
With a wage freeze , the employee loses his right to wages for the period during which he fails to fulfill his obligations. This can happen, for example, if an employee refuses to perform suitable work, fails to cooperate in reintegration or actively impedes recovery. In this case, the employer does not have to pay the withheld wages even if the employee later cooperates.
Importance of proper communication
An employer must always give prior written notice if there is a wage suspension or wage freeze. The warning must be clear so that the employee knows where he stands. If an employer fails to do this, for example by mentioning suspension of wages while a wage freeze was intended, the sanction may be invalid. In that case, wages must still be paid in full, possibly plus a statutory increase for late payment.
So it is very important for employers to carefully distinguish between the two measures and inform employees correctly.
Conclusion
A wage freeze is a powerful remedy for violation of reintegration obligations, but it requires accurate communication. Only when employers correctly inform employees in writing of the distinction between wage freeze and wage suspension will the sanction remain valid. Carefulness prevents costly mistakes.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – 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 wage freeze and wage suspension. Please feel free to contact us .
April 2025
