Overtime and compensation in the Dutch hospitality industry
Working hours in the hospitality industry can vary considerably. During public holidays, events, holiday periods or staff shortages, you may work more hours than usual. However, not every hour worked beyond your weekly schedule automatically counts as overtime under the Dutch Hospitality Industry Collective Labour Agreement.
The collective labour agreement distinguishes between additional hours and overtime hours. Which category applies depends on your contracted hours and the total number of hours worked during the reference period. This distinction also determines when you are entitled to paid time off or payment.
This information is based on the Dutch Hospitality Industry Collective Labour Agreement 2025-2026.
What are additional hours and overtime hours?
Additional hours
Additional hours are hours that you work at your employer’s request above the average number of hours stated in your employment contract, while remaining below the normal full-time working hours.
For example, if you have a part-time contract for an average of 24 hours per week, hours worked above your average contractual hours will generally be additional hours until you reach the applicable full-time threshold.
Overtime hours
Under the Hospitality Industry Collective Labour Agreement, overtime occurs when you work at your employer’s request for more than:
the normal working time of 1,976 hours during the reference period;
the working time applicable to on-call presence duties; or
a longer working time individually agreed with you.
A particularly long working week does not therefore automatically mean that all hours above 38 hours are overtime. The collective labour agreement uses a reference period of twelve months. Busy and quieter weeks can be balanced against each other during this period.
What is the reference period?
The reference period is a period of twelve consecutive months over which your total working hours are assessed. It will usually correspond with:
the calendar year, from 1 January to 31 December; or
the holiday year, from 1 June to 31 May.
An employer may use a different twelve-month period for the entire business. If a different reference period applies, it must be stated in your employment contract.
For a full-time employee, the normal working time is 1,976 hours per reference period. This equals an average of 38 hours per week. The actual number of hours worked may vary from one week to another.
A longer working time, such as an average of 40 hours per week, may be agreed in an individual employment contract. In that case, the employee must receive proportionately higher pay.
How are additional hours compensated?
If you have worked more than your average contractual hours at your employer’s request by the end of the reference period, you may have accumulated additional hours.
The following rules apply to established additional hours:
You receive one hour of paid time off for each additional hour.
The paid time off must be granted within three months after the end of the reference period.
If time off cannot be provided within those three months, your employer must pay the hours no later than the following month.
Payment is made at 100% of your hourly wage for each additional hour.
If your employment ends before the additional hours can be compensated with paid time off, the remaining hours must be paid.
How are overtime hours compensated?
The following rules apply to established overtime hours:
you receive one hour of paid time off for each overtime hour;
the time off must be granted within three months after the overtime has been established;
if this is not possible, the hours must be paid no later than the following month;
payment is made at 100% of your normal hourly wage for each overtime hour.
If your employment ends and the overtime hours can no longer be compensated with paid time off, the outstanding hours must be paid.
h2>Do you receive an overtime premium?
The Hospitality Industry Collective Labour Agreement does not provide a general premium of 50% or 100% for ordinary overtime. If overtime hours must be paid, the standard rule is payment at 100% of your hourly wage. This means that each additional hour is paid at your normal hourly rate.
A higher overtime payment may apply if more favourable arrangements have been agreed in:
your employment contract;
a staff handbook;
a company policy; or
an individual agreement with your employer.
Overtime compensation should not be confused with other forms of compensation. Separate rules may apply to work performed on public holidays. The collective labour agreement also does not provide a general automatic night-work premium.
How can you request time off in lieu?
You can ask your employer to use accumulated time-off-in-lieu hours on a preferred date. Under the collective labour agreement, you must:
submit the request before the work schedule is finalised; and
submit it at least three weeks in advance.
Your employer may reject the requested date for substantiated operational reasons, for example during a particularly busy period. The hours do not disappear as a result. They must be taken at another time or paid in accordance with the collective labour agreement.
Can you refuse additional hours or overtime?
Your employer cannot require you to work an unlimited number of extra hours during the reference period.
Limit for additional hours worked by part-time employees
A part-time employee generally cannot be required to work more than 10% above the agreed number of hours during the reference period.
If your employment contract is for fewer than 1,040 hours per reference period, a maximum of 104 additional hours applies. Once you exceed the relevant limit, you may refuse a request to work further additional hours.
Overtime limit for full-time employees
Your employer cannot require you to work more than 10% overtime above the normal working time during the reference period.
Based on the standard full-time working time of 1,976 hours, the limit is 2,173 worked hours. If working further hours would take you above this limit, you may refuse the additional overtime.
These limits under the collective labour agreement are separate from the statutory maximum working and rest periods under the Dutch Working Hours Act. Employers must comply with those statutory limits even during busy periods.
Example: additional hours under a part-time contract
You have an employment contract for an average of 24 hours per week. Under your contract, you would work 1,248 hours during the full reference period. At your employer’s request, you ultimately work 1,320 hours.
You have then accumulated 72 additional hours. In principle, these hours must be compensated with 72 hours of paid time off within three months after the end of the reference period.
If this is not possible within that period, the 72 hours must be paid no later than the following month at 100% of your hourly wage.
Example: overtime under a full-time contract
You work full-time based on the standard annual working time of 1,976 hours. At the end of the reference period, you have worked 2,020 hours at your employer’s request.
The difference of 44 hours is overtime. In principle, you receive 44 hours of paid time off. If the time off cannot be granted within three months after the overtime has been established, the 44 hours must be paid at 100% of your hourly wage.
What if you regularly work more hours than your contract states?
If you structurally work more hours than stated in your employment contract, the Dutch statutory presumption concerning the scope of employment may apply. This normally considers the average number of hours worked during the previous three months.
You can ask your employer to adjust your contractual hours to reflect this average. Your contract does not always change automatically. Your employer may attempt to demonstrate that the additional hours were temporary, for example because of a seasonal peak, holiday cover or the temporary replacement of an absent employee.
Keep copies of your work schedules, payslips and working-time records. These can help demonstrate that the higher number of hours is structural rather than temporary.
Separate rules apply to on-call employees. After every twelve-month period, an employer must generally offer an on-call employee a fixed number of hours based on the average number of hours worked during the preceding twelve months.
What are under-hours?
Under-hours are hours that you worked below your agreed average working time by the end of the reference period, while continuing to receive your salary.
The following rules apply at the end of the reference period:
under-hours generally expire;
if the under-hours are reasonably attributable to you, your employer may require you to make them up within three months after the end of the reference period;
any remaining under-hours expire after those three months;
under-hours caused by your employer failing to schedule or offer sufficient work cannot automatically be transferred to you.
If your employment ends and the under-hours are reasonably attributable to you, your employer may in certain circumstances deduct them from the final settlement. Before the end of your employment, your employer must have given you a reasonable opportunity to work the outstanding hours.
Read more about under-hours and additional hours in the hospitality industry.
Holiday allowance and holiday entitlement on extra hours
If additional hours or overtime hours are paid, holiday allowance and holiday entitlement may also be due on those payments. The Hospitality Industry Collective Labour Agreement provides for the accrual of holiday entitlement on paid compensation for additional hours and overtime.
When checking your payslip, review not only the number of paid hours but also whether the related holiday allowance and holiday entitlement have been processed correctly.
What can you do if your working hours are incorrect?
First check your employment contract, schedules, time records and payslips. Record:
which reference period your employer uses;
the number of hours in your contract;
the number of hours you actually worked;
which hours were worked at your employer’s request;
which time-off-in-lieu hours you have taken;
which hours have already been paid.
Ask your employer or payroll department in writing for a detailed overview of your hours and explain where you believe the discrepancy lies.
If you cannot resolve the issue, you can seek advice from De Horecabond, CNV, the Dutch Legal Aid and Advice Centre or an employment-law specialist. The Netherlands Labour Authority supervises compliance with statutory legislation, including the statutory minimum wage and the Working Hours Act. It does not automatically resolve every individual dispute concerning the interpretation of a collective labour agreement.
Frequently asked questions about overtime in the Dutch hospitality industry
1. Is every hour worked beyond my schedule an overtime hour?
No. The collective labour agreement assesses your hours over a twelve-month reference period. Under a part-time contract, hours above your average contractual hours will generally be additional hours first. Overtime occurs when you exceed the normal full-time working time or a longer individually agreed working time.
2. How many hours constitute full-time employment in the hospitality industry?
The normal working time is 1,976 hours per twelve-month reference period. This equals an average of 38 hours per week. A longer working time may be agreed in your contract, but it must be accompanied by proportionately higher pay.
3. Am I always paid extra for overtime?
No. The standard arrangement is time off in lieu. You receive one hour of paid time off for every established additional hour or overtime hour. The hours are paid only if compensation with time off is not possible within the period specified by the collective labour agreement.
4. When must additional hours be paid?
Additional hours must first be compensated with paid time off within three months after the end of the reference period. If this is not possible, they must be paid no later than the following month at 100% of your hourly wage.
5. When must overtime hours be paid?
Overtime hours must first be compensated with paid time off within three months after the overtime has been established. If this is not possible, your employer must pay the hours no later than the following month at 100% of your hourly wage.
6. Do I receive a 50% or 100% overtime premium?
Not under the standard arrangement in the Hospitality Industry Collective Labour Agreement. Payment at 100% means that every extra hour is paid at your normal hourly wage. It does not mean that you receive an additional 100% premium on top of your normal wage.
A higher payment applies only if more favourable terms have been agreed in your employment contract or within your company.
7. Can I refuse overtime?
Based on the standard full-time working time, you may refuse further overtime once your total would exceed 2,173 hours during the reference period. Your employer cannot require you to work more than 10% overtime above the normal working time.
8. Can a part-time employee refuse additional hours?
A part-time employee generally cannot be required to work more than 10% in additional hours above the agreed contractual working time. A maximum of 104 additional hours applies to contracts for fewer than 1,040 hours per reference period.
9. What if I have worked more than my contractual hours for three months?
You may be able to rely on the statutory presumption concerning the scope of employment. You can ask your employer to adjust your contractual hours to the average number of hours worked during the preceding three months. Your employer may demonstrate that the additional hours were only temporary.
10. What happens to under-hours?
Under-hours generally expire at the end of the reference period. If they are reasonably attributable to you, your employer may require you to make them up within three months. They expire after that period. Under-hours caused by your employer failing to provide sufficient work cannot automatically be charged to you.
11. Does the same compensation apply when working on a public holiday?
No. Work performed on a public holiday is subject to a separate arrangement under the collective labour agreement. A skilled employee is generally entitled to time off in lieu. If that compensation cannot be provided within three months after the public holiday, the entitlement to time off expires and a 50% premium applies to the hours worked on that public holiday.
Read more about working on public holidays in the hospitality industry.
Summary
Under the Dutch Hospitality Industry Collective Labour Agreement, hours worked beyond your weekly schedule do not automatically qualify as overtime. The classification depends on your contractual hours and your total working time during a twelve-month reference period.
Additional hours and overtime hours are generally compensated with one hour of paid time off for each extra hour. If paid time off cannot be granted within three months, the hours must be paid at 100% of your normal hourly wage. The collective labour agreement does not provide a general premium of 50% to 100% for ordinary overtime.
What does ‘cao’ mean?
Cao is the Dutch abbreviation for collectieve arbeidsovereenkomst, which means collective labour agreement. A collective labour agreement contains employment conditions agreed between one or more employers or employers’ organisations and one or more employee organisations.
The Dutch Hospitality Industry Collective Labour Agreement includes rules concerning matters such as wages, working hours, additional hours, overtime, holidays and other employment conditions.