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The end of the year is a busy period for many companies, but it also includes several public holidays such as Christmas Day, Boxing Day, and New Year’s Day. Many employees are entitled to time off on public holidays under a collective labour agreement (CLA) or their employment contract. However, it is important to note that a public holiday does not automatically mean employees are entitled to paid time off. But what about part-time employees who are already off because the holiday falls on their regular day off? Are they simply out of luck, or do other rules apply? In this article, we explain the situation from an employer’s perspective and outline the actions you may need to take.
Part-time employees are entitled to public holidays on a pro rata basis
For many years, employers did not compensate part-time employees when a public holiday fell on their regular day off. However, the Netherlands Institute for Human Rights has ruled that part-time employees are entitled to the same number of public holidays as full-time employees, calculated on a pro rata basis according to their working hours.
Differences in working hours may constitute unequal treatment
If a part-time employee’s fixed day off falls on a public holiday, they effectively receive fewer days off than employees who work full-time. If you, as an employer, do not offer compensation in such situations, this may be considered unequal treatment.
Several rulings by the Netherlands Institute for Human Rights confirm that such differences in treatment are generally not allowed. While it is important to note that the Institute’s rulings are not legally binding, they carry significant weight. If an employee takes the matter to court, the judge will make an independent assessment; however, in practice, courts often attach considerable importance to these rulings when reaching a final decision.
Please note! In a recent ruling, the District Court of Midden-Nederland clarified that on-call workers are also entitled to pro rata payment for public holidays. This means that the principle of equal treatment also applies to on-call employees.
Please note! Relatively many public holidays fall on Mondays, including Easter Monday and Whit Monday. This can be particularly disadvantageous for part-time employees who normally have Mondays off.
Distribution of public holidays for part-time employees
As an employer, it is crucial to take into account how public holidays align with part-time work schedules. You should ensure that each employee receives a proportionate number of hours off based on their contracted working hours. If you do not account for this, part-time employees may be disadvantaged, benefiting less from public holidays compared to their full-time colleagues.
Also consider mandatory days off under a collective labor agreement
In some cases, a collective labour agreement designates specific mandatory days off. If such a day coincides with a part-time employee’s regular day off, that employee may again be disadvantaged and compensation should be considered.
Practical solutions: pro rata calculation or an annual hours system
Fortunately, there are practical ways to manage this situation. Employers can either apply a pro rata calculation for part-time employees or work with an annual hours system. Below, we explain both approaches.
Pro rata calculation
A pro rata entitlement can be calculated by adding up the number of public holidays that fall on weekdays in a given year, and multiplying that number by the employee’s FTE percentage. For example, if there are six weekday public holidays in a year and a part-time employee works 0.6 FTE, that employee would be entitled to: 6 × 0.6 = 3.6 days off. These hours can be recorded as additional holiday hours in your administration. The employee can then use those hours as leave if a public holiday falls on a day they would normally work.
Annual hours system
Under an annual hours system, each employee receives the same number of days off (including public holidays) on a pro rata basis, depending on the number of hours they work per week. Under this system, the employer determines the number of working days in a year by subtracting weekends and recognised public holidays (that do not fall on a weekend) from the total number of days in the year. The number of working days is then divided by five to determine the number of working weeks per year. This number is multiplied by the employee’s average weekly working hours. The result is the total number of hours the employee is expected to work per year. Because public holidays are already factored into this calculation, they are automatically distributed fairly among all employees.
What does this mean for you as an employer?
Do you employ part-time staff? While the rulings of the Netherlands Institute for Human Rights carry authority, they are not strictly legally binding. As an employer, you must decide whether to follow these recommendations and offer compensation. However, this issue can easily lead to discussions within organisations and among employees. If you would like advice on how to handle this effectively within your organisation, please contact one of our advisors.
