Loonbetalingsverplichting

The obligation to pay wages constitutes one of the core obligations arising from the employment contract. The employer is required to pay the remuneration agreed between the parties, including any allowances, overtime payments and other components that qualify as wages. This obligation is set out in the Civil Code, in particular in the titles governing the employment contract and the concept of wages.

The obligation is of considerable importance to the employee’s financial position. In the event of non-performance, the employee may bring a claim for wages and may also claim statutory interest and any applicable penalty. In the event of the employer’s bankruptcy, a wage claim enjoys preferential status.

In practice, disputes concerning the obligation to pay wages most commonly arise in cases of disagreement over the amount of wages, the timing of payment or the question of which forms of compensation are to be regarded as wages.