Employers' obligation to continue paying wages

As an employer, you must continue paying your employees' wages for the agreed hours, even if there is insufficient work or the employee is unable to work due to a cause within your sphere of risk. This is called the wage continuation obligation: the basic principle is “no work, still pay”. Exclusion is only possible during the first six months (and not in the case of illness). Below, you can read when the obligation does and does not apply, and exactly how much you must pay.

What is the obligation to continue paying wages?

Under an employment contract , you pay wages based on the agreed hours — even if you temporarily have insufficient work. The idea is that the entrepreneurial risk lies with you, not with the employee. The obligation therefore also applies in the event of technical breakdowns preventing work, and when there is work available but you do not schedule an on-call worker.

The obligation to continue paying wages applies broadly: to employees with a permanent or temporary contract, but also to on-call workers and payroll employees. The obligation ends as soon as the contract expires.

When does the obligation to continue paying wages not apply?

The general rule of “no work, yet pay” has exceptions. In principle, you are not required to pay wages if the failure to work is attributable to the employee, for example:

• in the event of a strike;
• in the event of unauthorized absence;
• when the employee is in prison ;
• when the employee is regularly late (for time not worked).

If the inability to work is caused precisely by a reason that is reasonably attributable to you — such as insufficient work or a malfunction — then you must continue to pay the wages.

Can you exclude the obligation to continue paying wages?

Exclusion is possible to a limited extent. You may exclude the obligation to continue paying wages in the employment contract for the first six months. After that, it is only possible to exclude it for a longer period if a collective labour agreement (CLA) permits it — in that case, the CLA provisions apply. Please note: exclusion during illness is never possible; in the event of illness, the company's own statutory rules for the continuation of wages apply.

How much salary do you have to continue paying?

That depends on the type of contract:

• Permanent and temporary employees: the standard salary for the agreed hours.
• On-call workers: a minimum of three hours per call usually applies here. If you call up an on-call worker for less than three hours, you must still pay a minimum of three hours' wages. This applies to zero-hour contracts and min-max contracts.

You can read more about the rules regarding calling up staff in our article on the on-call contract.

Support from the UWV in special situations

The obligation to continue paying wages can be a heavy financial burden, and you cannot insure yourself against it. Financial reserves help to get through difficult periods. In special situations, the UWV provide support, for example in the case of inclement weather. You then report the absence, wait out the waiting days, and subsequently apply for an inclement weather benefit.

Frequently asked questions about continued payment of wages

Do I have to continue paying wages if there is no work?

Yes, in principle. Insufficient work falls under entrepreneurial risk. You are only not required to continue paying if you have validly excluded continued wage payments (for the first six months or via a collective labor agreement) or if a statutory exception applies.

Can I insure myself against the obligation to continue paying wages?

You cannot insure yourself against the obligation to continue paying wages in the event of a lack of work. However, absenteeism insurance does exist for wage continuation during illness. In addition, building up reserves remains wise.

Does the three-hour rule apply to every on-call contract?

The three-hour lower limit applies primarily to contracts with an uncertain number of hours, such as zero-hour and min-max contracts, where less than three hours are worked per call. If you are called in for less than three hours, you are still paid for three hours.

Assistance with continued salary payments and employment contracts

Are you unsure whether you are required to continue paying wages in a specific situation, or do you want to properly structure your employment contracts? The legal experts at MKB Juristen advise employers on the obligation to continue paying wages, on-call contracts, and options for exclusion. View our expertise in employment contracts or schedule a no-obligation intake.