When working in the Netherlands, you’ll often encounter the terms ADV and ATV. What do they mean? What benefits do ADV and ATV provide for employees and employers? What’s the difference between these schemes and standard leave? In this article, we explain the key issues related to this topic.
1. Arbeidsduurverkorting and Arbeidstijdverkorting – what are they?
Arbeidsduurverkorting (ADV) and Arbeidstijdverkorting (ATV) are terms that refer to reduced working time in the Netherlands. These systems allow to accumulate additional time off based on the number of hours which exceed the contractually agreed working week. Therefore, if a given person has a 38-hour working week in accordance with the provisions, but actually works 40 hours, 2 additional hours are accrued each week. Then, the time thus obtained can be used in the form of days or hours off, independently of statuory holiday leave. However, in certain cases, it’s also possible to receive such extra hours in cash.
ADV and ATV constitute the result of arrangements between employees and employers and are regulated in collective agreements, as well as in company regulations or individual employment contracts.
The ADV/ATV concept originated in the 1980s and was implemented as a measure to combat high unemployment. The aim of putting this idea into practice was to distribute the available work among a larger number of people in order to contribute to an increase in the employment rate. Currently, ADV and ATV schemes primarily serve to maintain a healthy work-life balance.
2. Benefits of ATV/ADV days
The presence of the ADV/ATV scheme in a given workplace brings benefits to both persons hired there and employers. As regards employees, they gain free time that they can spend on leisure activities or taking care of various personal matters. As a result, they are more relaxed and in better mental and physical condition, as well as they feel greater satisfaction from their work with less workload.
Employers, in turn, can expect increased productivity from staff who are more motivated and creative in performing their tasks. In addition, an enterprise that offers ATV/ADV has a significant chance of becoming more attractive to already hired persons and potential future workers. Particularly talented employees will be more likely to remain in a specific place of employment which will also attract more job candidates.
3. Difference between ADV and ATV
Although the terms ADV and ATV are sometimes used interchangeably, they don’t mean exactly the same thing. While they are very similar, there is a subtle difference between them that concerns how time off is taken. In the case of ADV, the worker typically has more flexibility and freedom in choosing when to use his/her accumulated hours. On the other hand, as regards ATV, it’s generally the employer who decides when the worker should take additional time off, indicating specific days or times of day. In a situation where ATV is applied and the employer doesn’t provide specific guidelines, the worker may make the decision himself/herself, but must consult it with the employer.
4. Difference between ADV/ATV and holiday leave
Unlike standard leave which is a statuory right of employees, Dutch legal provisions don’t regulate ADV and ATV schemes. Indeed, the ADV/ATV system constitutes the subject of an arrangement between the employer and the employee, defined in a collective labour agreement, company regulations or an individual employment contract. Therefore, not all employers offer this benefit.
Moreover, it should be noted that ADV/ATV also differs in nature from statuory leave, under which a worker is granted a specific number of days in accordance with Dutch law. Namely, this is a form of compensation, as it involves additional time accrued for hours worked beyond the number specified in the contract.
5. Validity of hours accumulated under ADV/ATV
Hours accumulated under ADV and ATV shall generally be used within the year in which they are accrued. Otherwise, they are forfeited, unless the employer decides otherwise.
If collective agreements or arrangements don’t contain other provisions, in a situation where an employee resigns from work or is dismissed, the employer isn’t obliged to pay for additional time that was accumulated in the form of ADV or ATV and wasn’t used before the end of the employment period.
6. Legal notice
The study is a work within the meaning of the Act of 4 February 1994 on Copyright and Related Rights (OJ 2006, No. 90, item 631, consolidated text, as amended). Publishing or reproducing this study or its part, quoting opinions, as well as disseminating in any other way the information contained therein without the written consent of Crede sp. z o.o. is prohibited.
