The New Danish Holiday Act
In 2015, the European Commission criticised certain aspects of the Danish holiday system. Consequently, a majority of the Danish parliament (“Folketinget”) recently passed a bill to amend the Danish Holiday Act.
Under the existing Danish holiday system, holiday with pay earned in one calendar year cannot be taken until the next calendar year. In practical terms, this means that a period of up to 16 months may pass from the time when the right to holiday was earned until the holiday can actually be taken.
The European Commission finds that the existing Danish Holiday Act is contrary to basic social rights providing for a minimum of annual holiday with pay as laid down by the European Union.
Against that background, the Danish Ministry of Employment has appointed a Holiday Act Committee composed by representatives of the two sides of industry, and this committee has submitted a proposal for a new Danish holiday model.
The proposal forms the basis for the new Danish Holiday Act which will make it possible for Danish employees to earn and take holiday within the same period of time, so-called “concurrent holiday”.
The main amendments to the Act are the following:
• Employees will earn and take holiday with pay within the same period of time. This means that newly hired employees will have a right to holiday with pay from the very beginning of their employment.
• Holiday will be earned and taken in the period from 1 September to 31 August, except that earned holiday may be taken until and including 31 December in the relevant year in certain cases.
• A transition period will apply during which existing employees will earn “double holiday” which will be frozen and paid out when the relevant employee leaves employment. All other provisions of the Danish Holiday Act remain unchanged, meaning that employees still have a right to 25 days of holiday with pay each year as well as holiday allowance of 1 % or holiday pay of 12.5 %. Employers must give three months’ notice of main holiday and one month’s notice of remaining holiday.
The new Danish Holiday Act will come into force on 1 September 2020.
The new Danish Holiday Act further entails that collective agreements will have to be adapted to the new rules, and it may be necessary for employers to update their standard employment contracts and staff manuals. Holst, Advokater is always prepared to assist you in these and other employment law matters. Please feel free to contact attorney Kirstine Skaarup if you have any queries.
