Sabbaticals and Unpaid Leave: What Should Employers Know?
How to deal with employee requests for a gap year or time off without pay
Gap years aren’t just for students anymore. More and more employees are requesting time off to travel, take a sabbatical, or simply step back from work. As an employer, do you have to say yes? Not necessarily, but in today’s employment climate, handling these requests carefully is crucial. This blog outlines the key legal and practical points around unpaid leave.
What is unpaid leave?
Unpaid leave means an employee temporarily stops working without receiving wages. There’s no general legal right to take unpaid leave in the Netherlands, except in specific cases covered by the Work and Care Act, like parental leave. However, collective labour agreements (CAOs) may include provisions on unpaid leave. These must be respected.
Employees may request unpaid leave for various reasons: long trips, personal matters, or a mental break. Employers are free to decide whether to grant such requests, but clear company policies help ensure consistency and avoid disputes.
How to handle an unpaid leave request
If an employee asks for unpaid leave, make sure your internal policies are in place:
Require timely requests so you can arrange cover
Set limits on how often and how long unpaid leave may be taken
Outline when a request can be denied
Clarify what happens if leave is interrupted or cancelled
Always speak with the employee about their reason for leave and plans for returning. Will they resume their original position, or is only continued employment guaranteed? Be cautious if the request stems from stress or workload issues, this may indicate early signs of illness, in which case leave may not be the right solution.
How unpaid leave affects employment conditions
During unpaid leave, the employee typically receives no salary. Some CAOs or company policies may allow partial continued payment, but this is the exception. Pension accrual may also be paused, depending on the scheme. In some cases, the employee can continue contributing to their pension at their own expense.
Employees usually do not accrue vacation days or holiday pay during unpaid leave. Other benefits, such as use of a company car or laptop, may be suspended. It's important to clearly document all agreements in advance.
If the employee becomes ill during unpaid leave, there is often no right to sick pay. Decide beforehand how illness affects the leave: will it pause or end the arrangement?
Employer’s duty to inform
Employers must inform employees of all consequences of unpaid leave. This includes not only employment terms, but also potential effects on government allowances and municipal benefits. The employee remains responsible for reporting income changes to the relevant authorities.
Consultation with the works council
If you want to introduce, change or cancel policies on unpaid leave, you may need approval from your works council under the Dutch Works Councils Act. Involve them early to ensure compliance and support.
Conclusion
Unpaid leave may sound simple, but it raises important legal and administrative considerations. With clear policies, open communication, and careful documentation, you can respond professionally to these requests and safeguard your organization. When handled well, a sabbatical can benefit both the employee and the employer.
This blog was written by Mr. Stijn Blom
Employment law attorney at expatlawyer.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and regulations – with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn’s page.
Expatlawyer.nl is happy to think along with you if you have questions about the topic of sabbaticals. Feel free to get in touch.
June 2025
