Unpaid holidays or unpaid leave may sound tempting in some cases. You can take it to, for example, have more vacation during the summer months in order to take care of your children during the school holidays.
Dries Rutten is a legal adviser at the Acerta social secretariat. He told VRT News that unpaid leave is different to the annual holidays that you are entitled as an employee. With annual leave, you keep your salary. This is not the case with un paid leave.
"It is a temporary suspension of your contract. So, the employer is not obliged to pay you a salary" Dries Rutten explains.
A right to request unpaid leave and not a right to demand it
Do you have the same right to unpaid leave as you have to paid leave, such as annual leave? "You have the right to ask for unpaid leave, but you cannot demand that you be given it. This works both ways. An employer can ask you to take unpaid leave, but you are not obliged to take it”, Dries Rutten explains.
When an employer and an employee agree that the employee can take unpaid leave, it is best to draw up an agreement. "The employee and employer agree when the period of unpaid leave starts and ends. We recommend putting this in writing, although it is not a legal requirement to do so."
What about your company car, work phone and luncheon vouchers?
If you take unpaid leave, your fringe benefits are suspended. Examples include company cars, work phones and luncheon vouchers. However, "A agreement can be made indicating that the employee can still use their company car or their work phone during the period that they are on unpaid leave."
"This is not the case with luncheon vouchers as you only receive them for the days on which you have worked. On public holidays, during sickness and during holidays, whether paid or unpaid, luncheon vouchers are not given."
Consequences of taking unpaid leave
Taking unpaid leave has a number of consequences.
1. Pension: Your pension is calculated based on the salary you earned during your career. During unpaid leave, you don't get any salary. This is then deducted in the calculation.
2. Taxes: You don't get a salary, so on your tax return you will also have slightly less income. This may result in you having to pay less taxes. However, the impact will be limited.
3. Annual holidays: In Belgium, your holidays for the following year are calculated on how much you have worked during the current year. This means that the days you do not work and did not get paid for will have an effect on the amount of annual holiday you receive the following year.
4. End-of-year bonus: If a bonus or end-of-year bonus (often referred to as a 13th month) if you took unpaid leave during the course of the year.