Can I postpone or cancel the holiday allowance?

  • Maurine La Verge
  • Q and A
  • Edited 10 October 2022
  • 1 min
  • In trouble
  • Rules and laws

Sometimes you may want to pay your staff their holiday allowance later, in part, or not at all. For example, if it means saving your business. You may only adjust the payment of the holiday allowance if you have permission from your employees or a court.

The law states that employees are entitled to a holiday allowance. You need to pay this allowance before 1 July. 

The agreements about how and when the holiday allowance is paid are included in the collective labour agreement (CAO) or in the employment contract. Most employers pay holiday pay once a year, in May or June.

Ask staff for their consent

Do you think you can avoid bankruptcy by paying the holiday allowance later, in part, or not at all? You need to ask each employee for their consent. 

Explain to your employees that if your business goes bankrupt, the Employee Insurance Agency UWV will pay them their holiday allowance, but the odds are they will be out of a job. They may be able to keep their job, but only if your business is taken over or can make a new start.  

If an employee agrees, you put the agreement in writing. They are only valid once both parties have signed them. The agreement is part of the employment contract.

Employees do not agree

Do your employees not give their consent, and can you still not pay their holiday allowance? They can take you to court and even file for bankruptcy. The court will decide whether your interest outweighs that of your employees. 

If you lose the court case, you will have to pay the holiday allowance after all. And this debt may ultimately lead to bankruptcy. 

Also of interest