Complaints of employees being denied holiday pay on the rise

A number of complaints from employees who are denied their legally guaranteed holiday allowance has been on the rise in recent weeks. Many of these workers said they have already been told they will not receive the holiday pay for the time being because their employers are facing financial strain amid the coronavirus pandemic crisis, BNR reported based on complaints received by legal insurance provider DAS.

Holiday pay equivalent to at least eight percent of the gross salary for the past year is normally given out in May. Due to the ongoing coronavirus crisis, companies across a number of sectors that are particularly hit by the lockdown restrictions now see holiday pay as an unaffordable burden, employers organizations ONL and VNO-NCW said.

ONL chair Hans Biesheuvel thinks entrepreneurs should approach their employees and constructively look for alternative ways to approach holiday pay, like delayed compensation. According to him, a settlement can be reached if employers are obliged to pay the holiday allowance in several installments or at a later date.

"The problem is even bigger than last year. Now reserves are running out, especially in the sectors hardest hit by the coronavirus crisis, such as the catering industry, small shops and events sectors. We advise entrepreneurs to even divide the holiday pay over several months if necessary," said Biesheuvel.

While the percentage of one's earnings that makes up holiday pay has varied throughout the years, the scheme has been a legal obligation for employers since 1969. Last year, nearly one in every ten Dutch claim that their employer was withholding their annual holiday pay due to the Covid-19 crisis.