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The new Danish Holiday Act introduces concurrent holiday, which means that holidays are now taken at the same time as they are accrued. This means that you can take a holiday the month after it has been have been accrued. The new Holiday Act provides extra flexibility, and gives new graduates quick access to paid holidays. However, it also gives rise to many questions - you can get answers to them here.
For many years, accrued holidays were postponed, meaning that while you earned a holiday in one calendar year, the holiday was taken from 1 May the following year.
On 1 September 2020, a new Holiday Act came into force. The most important change from the new Holiday Act is that we go from the postponed to the concurrent taking of holidays.
The new holiday year runs from 1 September to 31 August the following year. During the holiday year, you earn 25 holiday days corresponding to 5 weeks. You can take the holiday during the holiday period, which also runs from 1 September, but which is extended by 4 months after the end of the holiday year until 31 December. You earn 2.08 holidays per. month.
The new legislation only deals with the 5 holiday weeks that are secured through the Holiday Act. If you are entitled to extra holidays in addition to the 5 weeks, also known as extra holiday entitlements, it is a good idea to contact your union representative or employer to hear how the extra holidays will be allocated in the future.The local rules in the workplace or in the collective agreement determine how these are accrued, held and paid out. In the absence of a general agreement in the workplace, it depends on what, if any, is agreed between employee and employer.
If you have found a new job during the transition period, your employer must settle earned holiday allowance to FerieKonto in connection with resignation.
When you take a holiday in your new job, you must request to have your holiday pay paid out on borger.dk in order to receive pay during your holiday.
If you retire from the labour market, holidays earned up to and including 31 August 2019 will be settled to FerieKonto in the usual way.
Holidays earned in the period 1 September 2019 up to and including 31 August 2020 will be settled to FerieKonto, which will then settle to the fund Lønmodtagernes Feriemidler. Please note that you can receive holiday pay from the Fund as early as 1 October 2021. Read about frozen holiday pay further down.
If you resign at a time after 1 September 2020, when the new Holiday Act has come into force, holiday earned during that period will be settled in the usual way.
In the past, most permanent employees have been paid the holiday supplement (1 per cent) once a year, typically with the April or May salary. With the new Holiday Act, the employer can either pay the holiday supplement at the same time as the holiday is held or proportionally twice a year - for the first time in 2021.
According to the Holiday Act, the holiday supplement is 1 per cent. of the salary during the vesting period, but it may be higher if this is specifically agreed via your employment contract or the collective agreement or personnel handbook to which you are subject.
If you have an increased holiday supplement in addition to the holiday act's 1 per cent, it depends on the specific agreement or collective agreement that regulates this what happens to the holiday supplement.
The Holiday Act only regulates the holiday supplement of 1 per cent.
Your employer has paid your holiday pay (12.5 per cent of your salary) for the period 1 September 2019 - 31 August 2020 to the Fund Lønmodtagernes Feriemidler.
You can check your frozen holiday pay on borger.dk, if you have not already been paid your frozen holiday pay.
The money will be paid out when you leave the labour market.
If you have been ill or on maternity/paternity leave until the end of the holiday period, 4 weeks are transferred to the following period.
Holidays in excess of 4 weeks are paid out, unless you agree that this should be transferred.
It is only after the expiry of 2 following holiday periods that you can have the holiday paid out on condition that you have not had the opportunity to take the holiday during the holiday period. You can also choose to transfer the holiday the 3rd time.
If you have been on maternity/paternity leave from 1 September 2019 - 31 August 2020, you must be aware that you did not earn holiday during periods when you were only on unemployment benefits.
Your employer has therefore only paid money into the Employees' Holiday Funds for the periods in which you have received full or partial pay.
If you have had maternity/paternity leave, where the employer paid partial salary, the holiday pay for the leave period is calculated at 12.5 per cent. on the basis of your usual salary for the last 4 weeks where full salary has been paid.
Akademikernes Centralorganisation has in collaboration with i.a. IDA prepared a guide for the transition to the new holiday law as well as a guide for the new holiday law in the private sector. For now, it is ufortunately only available in Danish.