Attorney at Law
Attorney at Law & Partner & Partner
It has been a topic of considerable debate in employment law circles for quite some time: does an employee accrue holiday entitlement during a so-called dormant employment contract?
Dutch law links the accrual of holiday entitlement to the payment of salary. The accrual of holiday days therefore stops when the 104-week waiting period during illness comes to an end. European law applies a different standard and links holiday entitlement to work, including periods of incapacity for work, and not the payment of salary. On the basis of the European legislation, sick employees would be entitled to full accrual of holiday days even after the 104 week waiting period.
The fact that these different frameworks lead to uncertainty is evident from the conflicting rulings on the accrual of holiday days after the end of the waiting period.
In the rulings in which the court rules that the employee does not accrue holiday days after the end of the waiting period, reference is made, among other things, to the recuperative function of holidays. After the expiry of the waiting period, the employee would no longer have any (reintegration) obligations, and as a result, holidays would lose its function of recovery and rest. In these rulings, courts also point to the fact that employees with a dormant employment contract receive social benefits (WIA or WW), under which they are entitled to holidays with continued payment of benefits. If the employee were also to accrue paid holiday days with the employer during the same period, that would amount to double entitlement.
In an earlier blog, we highlighted the ruling of the District Court of Gelderland, in which the judge ruled that Dutch national law is incompatible with Article 31(2) of the Charter of Fundamental Rights of the European Union, which determines that every worker has the right to annual leave with pay. The court ruled that Article 7:634 of the Dutch Civil Code must therefore be excluded from application. The employer ended up being ordered to pay the holiday days accrued during the dormant employment contract.
On 2 March 2026, the District Court of Rotterdam acknowledged the above-mentioned inconsistent case law and uncertainty. The court considered that proceedings will continue to yield inconsistent outcomes in the future without a definitive answer from the Supreme Court on the question of whether holiday days are accrued during a dormant employment contract. The court therefore intends to refer a preliminary question to the Supreme Court on this subject. Although it will take a little longer, employers can look forward to clarity on the accrual of holiday days after the end of the waiting period.
Do you have questions about leave and long-term illness, or would you like to exchange views? Please contact Annemiek Varkevisser, Rose Horstman or one of our other employment law specialists.
Attorney at Law
Attorney at Law & Partner & Partner