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ARTICLE · 21 MAY 2025

Understanding The Difference Between Wage Suspension And Wage Freeze

In practice, the terms "wage suspension" and "wage freeze" are often mistakenly used interchangeably in the Netherlands, with potentially dire consequences for the employer.

NetherlandsEmployment and HR

In practice, the terms "wage suspension" and "wage freeze" are often mistakenly used interchangeably in the Netherlands, with potentially dire consequences for the employer. The key differences between the two wage penalties are discussed below, along with a notable case that provides some protection for employers.

Wage Suspension

An employer may suspend its obligation to pay wages if a sick employee fails to comply with reasonable written requirements to provide information that establishes their entitlement to those wages. This may, for instance, include seeing the company doctor.

The employee is not entitled to payment of wages during the suspension period. Once the employee starts complying, however, the employer will need to pay the wages regardless and will need to do so retroactively. This may mean that a wage suspension is less effective; if the employee starts to cooperate just before the monthly wage payment, they will not feel the impact of the

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