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What is vacation allowance and how about vacation days?
Every employee is legally entitled to 8% vacation allowance over his gross annual salary. A higher percentage can be agreed upon in the individual employment agreement. Employer and employee can agree that the gross annual salary includes vacation allowance as long as the annual gross salary (excluding the 8% vacation allowance) amounts to more than the applicable minimum wage. This must, however, be put in writing.
It is important to bear in mind the abovementioned during the negotiations with employees, as it is generally assumed that salary amounts discussed refer to gross salary excluding the vacation allowance. Therefore, it is advisable to always be specific about what any salary proposal does and does not include.
The vacation allowance differs from the entitlement towards vacation days. Employees are entitled to a minimum of four times their regular working hours per week of vacation per year. For example, for a forty hour work week (of 8 hours per day): 4 x 40 = 160 vacation hours (or twenty vacation days) per year. The employer is free to offer more vacation days, but cannot provide less than the statutory amount.
A collective labor agreement, if applicable, may entitle employees to additional vacation days.
What are my options when deciding about the duration of the contract?
Does a fixed term contract end automatically?
How to avoid legal proceedings in case of termination?
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PO BOX 20119
1001 NS Amsterdam
WTC Business Center
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2595 AM The Hague
3013 AK Rotterdam