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The Holiday Act is a Danish law that must be observed by all employers. The Act gives all employees a number of employee rights when it comes to holidays, for example the Holidays Act clarifies the absolute minimum number of holiday weeks that the employment relationship must meet.
In this article, we will make you more aware of the following topics within the Holiday Act:
Your employees are entitled to paid holiday if they are employees. This is because they are covered by the Holiday Act, §2, which clarifies that employees have the right to holiday and holiday payment. There are two different types of holiday pay in the Holiday Act, namely:
Wage earners accrue holiday from 1 September for one year until 31 August of the following year.
Your employees earn the right to 2.08 days of holiday per month. The holiday can be taken when the employee has earned it in the period from 1 September and 16 months up to 31 December of the following year.
However, it should be mentioned that you are allowed to give your employees holiday if, for example, they want to take a summer holiday but have not earned enough days to take the holiday. This instead means that the employee's balance for holiday days goes into the red.
It is crucial that you agree to the holiday with your employees and that you do your best to accommodate the employee's wishes. If, for example, your employees have children who go to school, you as an employer must take special account of this group of employees if they want a holiday during the school summer holidays. In the event that you cannot agree on the holiday period with your employee, it is you who makes the final decision.
However, your employees are entitled to take 3 consecutive weeks of main holiday in the summer period from 1 May to 30 September, the Holidays Act §8 Subsection 2, which points out that "The wage earner has the right to take at least 3 weeks of earned holiday in conjunction (the main holiday) during the holiday period […] in the period from 1 May to 30 September (the main holiday period)."
If you make the final decision regarding holding the holiday, you must inform the employee about this no later than three months before the main holiday begins and no later than one month before other holidays begin.
Main holiday is a term used in the Holiday Act. According to the Holiday Act, all employees are entitled to 5 weeks' holiday §15, which clarifies that "An employee has the right to take 5 weeks' holiday in each holiday period." Out of the 5 weeks' holiday, 3 of the weeks are earmarked as the main holiday, which is a 3 week continuous holiday. In special cases, an employer and employee can enter into an individual agreement on holiday that deviates from the provisions in the 8 Subsection 2, and thus reduce the number of consecutive days in the main holiday to 10 days, §31 part 6. The other 2 weeks of holiday are called residual holidays.
Feriefridage off are paid days off. These are days off that can be taken in addition to the 5 weeks of vacation under the Holidays Act. The holidays are not regulated by the Holiday Act, but by a collective agreement or if it appears in the employee's employment contract.
If your employees can take holiday days off, the basis of employment should also outline the following:
When an employee who is entitled to holiday with pay resigns from their position, you must pay a holiday allowance that is equivalent to 12.5% of the employee's holiday entitled salary.
The holiday allowance replaces the holiday with pay that the employee has not taken before they resign from their position. You must pay the employee's holiday allowance into the Holiday Account, and this must be done no later than the last day of the employee's employment.
It is worth mentioning that the holiday allowance cannot replace carried over holiday from a previous holiday year. In the event that you do not pay the employee's holiday money into Feriekonto, you will receive a reminder from Feriekonto about the non-payment.
Finally, it should be noted that this article is for guidance and it is recommended to contact legal assistance at any time.
If you would like to know more about termination, see here:
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