Salary During Sick Leave in the Netherlands: Employer Obligations and Limits

Salary During Sick Leave in the Netherlands: Employer Obligations and Limits

Salary during sick leave in the Netherlands: what employers need to know

Employee sickness is an inevitable part of running a business. However, many employers are uncertain about their legal obligations regarding salary payments, reintegration, and the duration of sick pay. Dutch employment law provides extensive protection for employees during illness, while also imposing important responsibilities on employers.

In this blog, we explain what employers need to know about salary during sick leave in the Netherlands and how to minimise legal risks.

Is an employer required to continue paying salary during sick leave?

Yes. Under Dutch employment law, employers are generally required to continue paying an employee’s salary during illness for a maximum period of 104 weeks.

The statutory minimum is 70% of the employee’s gross salary (including holiday allowance), although many employment contracts or collective labour agreements (CAOs) provide for a higher percentage, particularly during the first year of sickness. If the employee’s gross pay is less than the minimum wage, the employer must top up the pay to the minimum wage during the first year.

Employers should therefore always verify whether a collective labour agreement or contractual arrangements apply before determining the level of sick pay.

Employer obligations during sick leave

Salary payment is only one aspect of an employer’s responsibilities.

Employers must also:

• Continue salary payments in accordance with the law or applicable CAO;
• Cooperate with the company doctor (bedrijfsarts);
• Support the employee’s reintegration process;
• Prepare and maintain the required reintegration documentation under the Gatekeeper Improvement Act (Wet verbetering poortwachter).

Failure to comply with these obligations may result in sanctions from the Dutch Employee Insurance Agency (UWV), including an obligation to continue salary payments beyond the initial 104-week period.

Can an employer stop paying salary?

In certain situations, yes.

An employer may suspend or stop salary payments if an employee fails to comply with their legal obligations during sick leave. Examples include:

• Refusing to cooperate with reasonable reintegration efforts;
• Failing to attend appointments with the company doctor without a valid reason;
• Refusing suitable work that has been recommended by the company doctor;
• Deliberately delaying or obstructing the reintegration process.

However, employers should exercise caution before suspending salary payments. In many cases, legal advice should be sought first to ensure that the statutory requirements have been met.

The role of the company doctor

Employers cannot determine for themselves whether an employee is fit for work.

Only the company doctor is authorised to assess:

• Whether the employee is incapacitated for work;
• What work limitations exist;
• Whether suitable work can be performed;
• What reintegration steps should be taken.

Employers should therefore avoid making assumptions based on their own observations or informal medical advice.

Practical risks for employers

Managing sick leave incorrectly can result in significant legal and financial consequences, including:

• Salary claims from employees;
• UWV wage sanctions;
• Delays in reintegration;
• Employment disputes and litigation.

A proactive and well-documented approach helps reduce these risks considerably.

How to minimise legal risks

Employers can reduce risks by:

• Maintaining regular communication with the employee;
• Following the advice of the company doctor;
• Properly documenting all reintegration efforts;
• Complying with the obligations under the Gatekeeper Improvement Act;
• Seeking legal advice before suspending salary payments.

Early action often prevents lengthy and costly disputes.

Conclusion

Dutch employment law provides employees with extensive protection during sickness while placing significant responsibilities on employers.

Understanding when salary must be continued, when payments may be suspended, and how reintegration should be managed is essential for avoiding legal and financial risks.

Need clarity about your legal position or risks?

I offer a Legal Quick Scan for employers who want practical, concrete advice on managing sick leave, salary obligations and employment law risks.

👉 Fixed-fee sessions available.

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