Paid and unpaid leave: what's the difference and how does it work?

Leave is an important part of the work-life balance, but not everyone knows exactly how leave works. What is the difference between paid and unpaid leave? How do you calculate leave hours? And which rules and laws apply?

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In this blog, we explain it all and provide practical tips for effectively managing leave.

Types of leave and differences

There are different types of leave, each with their own characteristics. Here we distinguish between paid, special or special and unpaid leave. All types of leave can be taken in consultation with the employer.
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Paid leave

With paid leave, you will receive a salary while you are absent. Examples include:
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• Vacation days: Here, the employee has the right to relax and rest. As an employee, you will continue to receive 100% of your salary here.
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• Sick leave: During illness, you will receive at least 70% of your salary.
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• Maternity or maternity leave: In the period before the birth of your child, you can go on maternity leave as a mother. Once the child is born, this is converted to maternity leave. In both cases, 100% of the salary will be paid.
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• Calamity leave or short absenteeism leave: For emergencies, such as a sick child who needs to be picked up from school or a death in the family.
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Special leave

Depending on your collective agreement or employment contract, you can take leave for situations such as marriage, death of a family member, relocation or exams. Check your collective agreement or employment contract to see what rules apply to you.
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Unpaid leave

In case of unpaid leave, you will not receive a salary. In addition, unpaid leave often affects your pension accrual and vacation days. This leave is often used for:
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• Care leave: Time to care for a sick family member.
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• Parental leave: In addition to the paid part, you can take additional unpaid leave.
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• Sabbatical: Time for personal development or travel.
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💡 Read more about the consequences of unpaid leave
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You can read more about unpaid leave later in this blog.
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What is parental leave?

Employees are entitled to 26 weeks of parental leave to adapt to the new family situation. Of these, 9 weeks were partially paid and 17 weeks were unpaid. There are therefore two forms of parental leave: paid and unpaid.
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Parental leave in 2025

In 2025, paid parental leave will remain an important topic. Since the introduction of the Paid Parental Leave Act in 2022, we have seen more and more parents (especially fathers) making use of this scheme.
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Key points for employers

• Increase in requests: The number of applications for parental leave continues to increase, especially among fathers (40% of applications in 2023).
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• Financial threshold: Low-educated parents make less use of leave, partly due to the payment of only 70% of the daily wage.
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• Challenges for employers: The increase in the number of leave requests requires flexible solutions for replacements and working hours.

What can employers do?

• Provide temporary replacements or flexible work schedules.
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• Consider offering training opportunities for internal replacements.
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• Follow possible changes in legislation that can make the leave system easier.
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Paid parental leave offers opportunities for employees to better combine work and private life, but requires employers to think ahead in personnel planning.
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💡 Read more about, among other things, applying for parental leave here

How do you calculate leave hours?

Legally, as an employee, you are entitled to a number of leave hours. This number of hours equates to 4 times the number of hours you work per week. Below is an example of how to calculate the leave of employees who work full-time and part-time.
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Full-time employment

Take Janneke, for example, she works at an accounting firm. Janneke works 40 hours a week as a salaried employee. This means that Janneke is entitled to 160 statutory leave hours per year.

Part-time employment

Peter works part-time at an ICT consultancy firm for 18 hours a week. This means that he is entitled to 72 hours of leave per year with this employer.

When more vacation days are accrued than the legal number, we are talking about “non-statutory” vacation days. The agreements about this are further laid down in the collective labor agreement or employment agreement.

What are the rules and laws for applying for leave?

As an employer and employee, there are a number of rules that you must comply with when it comes to applying for leave. Here are a few important points to keep in mind.
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• As an employer, refuse the leave request: As an employer, you are obliged to respond to your employees' written leave request within 2 weeks. The request may only be refused for important reasons or if the employee's absence extremely disrupts business operations.
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• Sick during my leave: As soon as you become ill during your vacation, report this immediately to your employer. These days are then not registered as vacation days, but as sick days. You can take the other vacation days at another time in consultation with your employer.
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• Take leave hours into next year: Statutory vacation days must be taken before July 1 of the following year, unless otherwise agreed. Extra-statutory leave hours via the collective labor agreement or employment contract may have different rules.
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• Taking leave during illness: During illness, you still accrue statutory vacation days. If you want to take leave during illness, this is only possible in consultation with your employer.

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Leave balance at the end of the year

At the end of the year, it's important to properly update your employees' leave balance. This affects work planning, financial budgets and prevents surprises. Good preparation for 2025 ensures that all leave days are properly registered and that your employees know where they stand.

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Why is it important to update the leave balance?

At the end of the year, there may be several things that affect the leave balance:
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• Untaken leave days: Statutory vacation days must often be taken before July 1 of the following year, unless otherwise agreed.
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• Special leave or parental leave: Taking paid or unpaid leave may affect your balance in recent months.
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• Transfer or expire leave days: Check whether leave days should be carried over to the new year, or if days expire.

As an employer, you must do this with a leave balance at the end of the year

As an employer, you must do this with a leave balance at the end of the year.
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• Check the vacation days: Make sure that all days of leave are properly registered, including special leave and parental leave.
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• Calculate the remaining balance: Update the balance and communicate it to your employees. Make sure that remaining vacation days are clearly visible.
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• Agree on the transfer of days: Discuss with your employees whether untaken leave will be carried over to 2025. This prevents unexpected costs or misunderstandings.
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• Inquire about due dates: Let employees know if and when their vacation days expire so they can plan in time.

Leave balance and unpaid leave

In the case of unpaid leave, no vacation days are accrued. This can affect the remaining balance, especially if employees have taken long-term unpaid leave. This may result in fewer leave hours available at the end of the year.

By updating your leave balance on time, you can ensure the smooth running of leave management in 2025, preventing problems and making you well prepared for the coming year.

Want to buy unpaid leave or vacation days?

Are you hesitating between taking unpaid leave or buying extra vacation days? We'll be happy to explain which option best suits your personal situation and needs.
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Unpaid leave

In case of unpaid leave, you take time off without continuing to pay your salary. This is often an option for longer absences.
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How does that work, taking unpaid leave?

Applying for unpaid leave is always done in consultation with your employer. Together, you make agreements about the length of the leave. You also make agreements about your return. There are no legal rules about how long unpaid leave can last; this is mutually agreed.
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Please note that unpaid leave can affect a number of things, namely:
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• Your pension
• Allowances that you receive with your changing income
• Municipal taxes
• You do not accrue vacation days during unpaid leave

Buy extra vacation days

When buying vacation days, you pay for extra leave on top of your vacation days. Whether you can purchase additional vacation days depends on the rules in your collective labor agreement or employment contract.
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If buying extra vacation days is an option with your employer, request them in writing. Your employer can only refuse this request if your presence causes problems.
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The costs for an extra day of vacation are often deducted by:

• Deduction from your salary
• Deduction from your vacation pay
• Deduction from your 13th month or year-end bonus.
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Always check your collective labor agreement or employment contracts for specific agreements.

Leave tips for employers and employees

A good leave policy is essential for both employers and employees. Here are some practical tips for making leave run smoothly:

For employees

• Plan your leave on time: Submit your leave request early to avoid disappointment, especially during busy periods.
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• Keep track of your leave balance: Use a tool like TimeChimp to always have insight into your available days.
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• Communicate clearly: Discuss your plans and any special circumstances with your employer in good time.

For employers

• Make leave rules transparent: Make sure that all employees know how leave requests are handled and what the rules are.
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• Take into account peak periods: Make sure there is always sufficient staff available during busy periods.
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• Use a leave management tool: Tools like TimeChimp make it easier to manage requests and keep an overview, for both small and large teams.

TimeChimp: The Leave Management Solution

With TimeChimp, you can easily digitize leave registration and make it organized. You can:
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• Streamline leave requests and approvals.
• Always have insight into the availability of your team.
• Apply leave rules and balances automatically.
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💡 Watch here how TimeChimp makes leave management easy.

Conclusion

Leave plays a crucial role in employee well-being and efficiency within organizations. In this blog, we discussed the differences between paid, special and unpaid leave, and how to apply and manage these forms of leave. We also shared useful tips for both employees and employers to arrange leave smoothly.
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A good leave policy ensures satisfied employees and a smooth organization. Do you want to make leave management easier and more efficient? Try TimeChimp for free and learn how to save time and create insight!

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