Understanding PTO Reports in the Netherlands

Starting a job in the Netherlands comes with understanding various aspects of employment law, particularly how Paid Time Off (PTO) works. This blog is designed to help both employees and employers navigate the essentials of PTO in the Netherlands, covering annual leave, additional leave (ADV days), and the procedures for reporting and taking leave.

How PTO is counted in the Netherlands

In the Netherlands, PTO is primarily categorized into Annual Leave (Vakantiedagen) and sometimes Additional Leave Days (ADV) or work-time reduction days. The amount and type of PTO vary depending on the employee’s contract, and company-specific agreements, often laid out in collective labour agreements (CAOs).

Annual leave (Vakantiedagen)

Employees in the Netherlands are legally entitled to a minimum of four times the number of days they work per week. For full-time employees, this typically translates to 20 paid vacation days per year. However, many employers provide additional vacation days, with 25 to 30 days being common practice.

The law ensures that employees gather vacation days throughout the year as they work. Employees often benefit from additional PTO through collective agreements or company policies, especially in sectors where work-life balance is prioritised.

Here’s the key distinction for annual leave in the Netherlands:

• Full-time employees working a 5-day workweek are entitled to a minimum of 20 vacation days.
• Many companies provide more than the legal minimum, often offering between 25 and 30 days of vacation to promote a healthier work-life balance. All days above the legal minimum are considered extra-statutory vacation days.

Vacation days are accrued monthly based on the employee’s work schedule, which ensures they accumulate leave throughout the year.

Additional leave (ADV days)

Some employees in the Netherlands are entitled to ADV (Arbeidsduurverkorting) days, which serve as additional time off. ADV days come into play when employees work beyond the standard full-time hours or as part of specific collective agreements. The number of ADV days depends on the sector and the company’s agreements with the employee and must be used within the calendar year.

How many PTO can an employee get?

• Annual leave: Dutch law mandates a minimum of four times the weekly working days for paid vacation. For a standard full-time employee, this equals 20 days. However, many employers provide more vacation days, often in the range of 25 to 30 days annually. All days above the legal minimum are considered extra-statutory vacation days.
• ADV days: ADV days are typically offered in sectors where employees work more hours than the standard full-time workweek. The exact number varies by company and sector, and these days must generally be used within the calendar year.

The reference period for PTO

Annual leave

In the Netherlands, vacation days are gathered over a calendar year. However, the employee is generally allowed to take their vacation days at any point during the year, even before they have accrued them. If the employee does not take their vacation days, the unused days typically expire six months after the end of the calendar year (June 30th of the following year), unless otherwise agreed upon in a contract or collective agreement. Statutory days expire 6 months after the year in which they are accrued, while extra-statutory days are valid for 5 years.

If an employee leaves the company without using all their accrued leave, they are entitled to a payout for any remaining vacation days.

ADV days

Similar to vacation days, ADV days must be used within the same calendar year. These days do not carry over, and employees are encouraged to use them within the required timeframe. The exact rules can vary based on the company and any applicable collective agreements.

How can employees take PTO?

The process of taking PTO in the Netherlands depends largely on the employer’s internal policies and the applicable collective labour agreement (CAO). Here are some general guidelines:

• Annual leave: Employees have the right to take their vacation at a time of their choosing, but they must consult with their employer beforehand. Employers can refuse leave requests if it conflicts with the company’s operational needs, but they must offer a reasonable alternative.
• ADV days: These days often offer more flexibility and are usually taken at the employee’s discretion, depending on the company’s policy. However, they must still be used within the calendar year.

How to report PTO top your employer?

Reporting and requesting PTO in the Netherlands typically involves the following steps:

• Check your CAO or contract: Make sure to consult the applicable collective labour agreement (CAO) or your employment contract to understand the specific rules regarding your PTO.
• Request in advance: It is common to request vacation leave well in advance, especially for long vacations or during busy periods such as summer. Your employer has the right to refuse leave if it significantly disrupts the business.
• Formal approval: Make sure your PTO request has been formally approved by your employer before making any plans. Most companies have an internal system, often through HR software, where leave requests are tracked and approved.
• Document your leave: It’s a good idea to keep a record of your approved vacation days and any remaining PTO to avoid misunderstandings.
• Coordinate with your team: Planning your PTO in coordination with your team can help avoid conflicts, especially during busy periods. Employers may prioritize requests based on seniority or personal circumstances, such as employees with children during school holidays.

Need help understanding PTO in the Netherlands?

Understanding PTO in the Netherlands is essential for both employees and employers. With a legal minimum of 20 vacation days and potentially additional ADV days, Dutch employees enjoy substantial time off. However, as with any legal entitlement, it’s important to understand the specific rules around accrual, use, and expiration to make the most of your PTO.

If you have any questions or need further clarification about PTO in the Netherlands, our HR consultants are here to assist you. Whether you’re an employee looking to understand your entitlements or an employer seeking to ensure compliance with Dutch regulations, we’re just a call or email away.

Contact us today, and one of our experienced HR professionals will be happy to help you navigate the complexities of PTO and other HR matters.