Leave savings schemes for board members: an underestimated tool for early retirement
Publication date: 27 January 2026
Employers considering early retirement options have traditionally focused on employees in physically demanding roles. In collective labour agreement (CLA) contexts, the emphasis is often on so‑called blue‑collar arrangements. Far less attention is given to board members and other white‑collar positions, even though this group may also benefit from a gradual and well‑structured transition towards the end of employment. One often overlooked instrument for facilitating this is the leave savings scheme. In organisations without a CLA, a formal regulation for such a scheme is frequently absent.
Why introduce a leave savings scheme for board members?
For board members, a (continuous) period of leave prior to termination can contribute to a careful handover of responsibilities. In strategic positions especially, continuity and governance benefit from a phased reduction of duties rather than a sudden end to the employment relationship. When a leave savings scheme is thoughtfully designed and does not qualify as an Early Retirement Scheme (RVU), it may also offer fiscal advantages.
What should be included in a well-devised leave savings regulation?
When drafting a leave savings scheme for board members, more aspects come into play than may initially be assumed. It should clearly specify how much leave can be saved, when the saved leave can be taken, and whether the leave must be taken in one continuous block prior to the end date of the employment contract. In addition, the employment conditions applicable during the leave period require explicit attention. This includes determining which fixed salary components will continue to be paid and to what extent variable remuneration elements will remain applicable.
Clear arrangements on illness are essential as well. A solid regulation prevents ambiguity by laying out what happens if illness occurs before or during the leave period. Finally, it is important to address ancillary activities. A longer leave period may create room for other activities, making clear boundaries necessary.
Why take action now?
Due to the tight labour market, an ageing workforce and broader discussions around sustainable employability, more organisations are exploring flexible ways to facilitate outflow. A well‑structured leave savings scheme can be an appealing and efficient solution, also for board members.
Would you like to explore whether a leave savings scheme could fit within your organisation, or discuss its fiscal and legal design? Feel free to contact us for further discussion.
