6 November 2024

Suspension of salary or discontinuation of salary

By Anja Blijham

A sick employee is entitled to 104 weeks of continued salary payment, but this entitlement comes with responsibilities. The employee must actively engage in their reintegration process and cooperate towards a swift recovery.

However, if the employee fails to meet these obligations adequately, the employer is faced with the decision of implementing either a salary suspension or a salary stop.

Suspension of salary

In cases where an employee refuses to adhere to control regulations necessary for determining their entitlement to salary during illness, the employer may opt for salary suspension. These control regulations are in place to ensure that the employer can accurately assess the employee’s work incapacity. Compliance with these regulations, such as attending scheduled appointments with the company doctor and being available at specified times, is essential for the employer’s decision-making process.

The decision to suspend salary should only be made if the employer is unable to verify the employee’s actual work incapacity. During a salary suspension, the employer delays payment to the employee. If the employee subsequently cooperates with their reintegration obligations, the employer is obligated to retroactively pay the withheld salary. Therefore, salary suspension serves as a strategic tool to motivate the employee to fulfil their reintegration responsibilities promptly.

Discontinuation of salary

In certain circumstances, the employer may choose to stop the employee’s salary rather than suspending it. In case of discontinuation of salary, the employee forfeits their right to receive payment during this period. Unlike salary suspension, the withheld salary is not paid retroactively if the employee later complies with their obligations. The discontinuation of salary serves as a definitive disciplinary action.

The law clearly outlines situations in which an employer is permitted to discontinue an employee’s salary. The employer can discontinue the salary in the following cases:

  • The employee deliberately causes their own  (incapacity for work);
  • The employee conceals a pre-existing condition or provides false information during their pre-employment medical examination;
  • The employee intentionally hinders or delays their recovery process;
  • The employee refuses to perform suitable work or comply with regulations aimed at facilitating suitable work;
  • The employee fails to participate in developing, evaluating, or adjusting a reintegration plan;
  • The employee submits a WIA application late or fails to submit one at all.

In such circumstances, the employee forfeits their right to salary, allowing the employer to cease payment. If the employee resumes cooperation with the reintegration process and adheres to the required regulations following the salary stoppage, payment will resume from that point onwards. So, in cases of a justified salary discontinuation, the employee is not entitled to receive salary for the duration of their non-compliance with reintegration obligations.illness

Importance of prior warning

Before implementing a salary discontinuation or suspension, it is essential for employers to provide the employee with a written warning. This warning should clearly outline the expectations placed on the employee, specify the deadline for meeting these expectations, and detail the consequences of non-compliance. If the situation does not improve following the warning, the employer may proceed with either discontinuing or suspending the salary.

Conclusion

Navigating the decision between implementing a salary discontinuation or suspension can be complex for employers. Choosing the appropriate measure is crucial as an incorrect decision may result in the employee retaining their right to salary.

More information

Do you need clarification on implementing a salary discontinuation or suspension? Or do you have any related questions? Please feel free to contact us.

Anja Blijham

Anja Blijham

Advocaat

‘Achieving the Best Results Together’

Related blogs

Previous slide
Next slide

5 February 2025

A Promise is a Debt (in principle)

Can an employer retract a (verbal) promise to extend an employee’s contract? In principle, no. A promise is a debt.

Read more

Read more about

3 February 2025

Taking action against damage to employer reputation

Most employers include confidentiality clauses in employment and termination agreements.

Read more

Read more about

29 January 2025

Strengthening Works Council Rights in Bankruptcy Cases

For the second time in five years, a proposed bill was open for public consultation, introducing new rules that automatically transfer employees to the acquiring company during a restart after bankruptcy.

Read more

Read more about

20 January 2025

Respecting co-determination rights

Works councils do not often take legal action against their own management. Typically, they try to resolve disputes through constructive dialogue with the management or entrepreneur, which is often the preferred approach. However, if dialogue fails, works councils (WC) have several legal avenues available.

Read more

Read more about

15 January 2025

Request for Permanent Employment

Since August 1, 2022, employers in the Netherlands must comply with the Transparent and Predictable Working Conditions Act.

Read more

Read more about
All articles