Vacation Days Administration: Why It’s the Employer’s Responsibility
Recent case law shows that poor vacation tracking can cost employers dearly
Everyone loves a holiday, but for employers, keeping track of vacation days can be a legal minefield. Who records what is taken? What if there’s disagreement at the end of an employment contract? And how can you avoid paying for days you thought were already used? Recent Dutch court rulings make one thing very clear: the responsibility for vacation day administration lies firmly with the employer. In this blog, we explain three key court decisions and share concrete steps to avoid legal trouble.
If the employer can’t prove otherwise, the employee’s records win
In a case heard by the Overijssel District Court, a former employee claimed payment for 18.5 unused vacation days. He had kept his own records, while the employer couldn’t produce anything to disprove them. The court ruled that in the absence of a proper employer record, the employee’s account was binding. The result? A payout of €1,966.09.
Don’t deduct vacation days during illness without clear records
In another case involving a notary’s office, an employee had been on long-term sick leave. The employer believed she could have taken vacation during that time and deducted four weeks from her balance. The court disagreed. The employer had no adequate vacation record and had also failed to warn the employee that her statutory vacation days might expire. The judge emphasized that employers have a duty to actively inform employees about this risk. In the end, the employer had to pay out €13,836.92 in unused vacation.
Deducting negative vacation hours? Not without solid proof
A third ruling dealt with an employer who tried to reclaim payment for 14 days of allegedly overused vacation after an employee left the company. The claim, worth €1,345.71, was based on days when fewer than eight hours had been logged in a timekeeping system. The court rejected the claim outright. First, the system was for billable hours, not vacation tracking. Second, the employee had never received regular vacation balance updates. The judge concluded the employer had no reliable vacation record and thus no legal basis for the deduction.
Three action points for employers
Across all cases, one message stands out: employers are responsible for vacation records. If your administration is lacking, you carry the risk. Here’s what you should do:
Maintain a clear and up-to-date system.
Use one consistent method for employees to request leave and record both taken and accrued days accurately each year.Provide regular reports.
Give employees periodic vacation balance statements, ideally each quarter or half-year, to avoid disputes.Inform employees about expiration deadlines.
Actively notify staff (in writing) that statutory vacation days expire after six months and remind them in time to use them.
Conclusion
Whether it’s about leave during illness, negative balances, or unrecorded holidays, the courts expect employers to back up their claims with proper documentation. In every case where the employer failed to produce a solid vacation record, the employee won—and the financial consequences were significant. The takeaway is simple: vacation administration is your responsibility. Invest in a proper system, give employees transparency, and stay on top of your legal duties. It’ll save you from nasty surprises and expensive litigation.
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.
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June 2025
