Introduction
The need for flexibility in the workplace is growing. Employees want to better balance their work and personal lives. Leave days play an important role in this. But what if someone needs extra time to recharge or, on the other hand, has leave days left over? Buying and selling leave days offers a flexible solution that aligns with both the individual needs of employees and the strategic goals of organizations.
Statutory and Non-Statutory Leave Days
Every employee in the Netherlands is entitled to a minimum number of leave days per year, known as statutory leave days. By law, this equals at least four times the weekly working hours. For a full-time employee (40 hours), this means 20 days per year. These days must be taken within six months after the end of the calendar year, unless other agreements have been made. Unused statutory leave days then expire automatically.
In addition to these statutory days, there are often non-statutory leave days, defined in a collective labor agreement (CLA), employment contract, or company policies. These additional days offer more flexibility and remain valid for five years. It is essential that both employers and employees understand the difference and know which rules and agreements apply.
Personal Control: Buying and Selling Leave Days
Not every employee has the same need for time off. Some prefer to buy extra leave days for a long vacation, time with family, or simply to recharge throughout the year. Others prefer extra salary instead of additional time off. Selling leave days can be attractive if there is little need for time off or if extra income is welcome—for example, to save money or cover unexpected expenses.
By offering employees the option to buy or sell leave days, they can better tailor their employment benefits to their personal situation. This increases freedom and engagement, as long as the options and rules are communicated clearly and transparently.
Rules and Points of Attention for Employers
Although buying and selling leave days is becoming increasingly common, there is no specific legislation governing it. Employers must therefore establish clear agreements in the employment contract or company policies. Below are several important points to consider:
Maximum number of days: Determine how many days may be bought or sold to prevent an unhealthy imbalance between work and rest.
Application process: Define how employees submit their requests (for example, via an HR system, form, or email).
Policy for unused purchased leave days: What happens to purchased leave days that are not used? Are they carried over, paid out, or do they expire?
Valuation: Define how the value of bought or sold days is calculated, for example based on salary. What happens to the value of purchased leave days if they are carried over to the next year?
Moment of settlement: Agree on when settlement takes place, for example with the next salary payment or at the end of the year.
It may seem simple or perhaps complex depending on your perspective. Leavedays supports you in setting up and communicating these policies clearly. As a company, you can ensure a fair and uniform approach.
Step-by-Step Plan for a Successful Policy
Would you like to start offering the option to buy and sell leave days within your organization? Follow these steps:
Assess the need: Determine whether there is interest within the organization.
Define policy and process: Establish limits, procedures, valuation, and settlement.
Formalize agreements: Record everything clearly in the employment contract or company regulations.
Communicate clearly: Make sure employees understand the options and rules.
Buying and selling leave days offers both organizations and employees a valuable tool for customizing employment benefits. With clear agreements, transparent communication, and a well-designed process, everyone benefits from greater freedom and flexibility.