Global Compliance Desk – Denmark

Based on the findings and recommendations in the Holidays Committee’s “Report on a New Holidays Act” issued on 22 August 2017, the Danish Parliament has adopted a new Holidays Act which will enter into force on 1 September 2020.

Current Rules of Staggered Holiday
Under the current rules, holidays are earned from January to December (accrual year), wherein employees cannot spend their accrued holidays before 1 May of the following year. Therefore, new employees may have to work up to 16 months without leave before they can take paid holiday leave.

New Rules of Concurrent Holiday
According to the new Holiday Act, employees can accrue and take the leave at the same time in a 12-month period (the holiday year). This means that the holiday earned in February can be taken as soon as March the same year.

The amendment introduces a new period for accruing and taking leave. The change to concurrent holiday implies that the holiday year – the period in which holiday entitlement is accrued – will run from 1 September to 31 August. The period in which the accrued holiday can be taken will be the same as the holiday year + 4 months, i.e. from 1 September to 31 December the following year, in total 16 months.  Hence, the employee will have the opportunity to take the earned vacation for an additional 4 months, which means that he will have 16 months to take the earned holiday (holiday period). This gives the employee higher flexibility to take the holiday.

Transition Phase
The new Act enters into force on 1 September 2020, following a transition period which runs from 1 January 2019. In order to, ensure a smooth transition to the new Holiday Act, the following transition scheme has been introduced:

  • Holiday accrued from 1st January 2019 to 31st August 2019 (16.7 days of paid
    holiday) may be used between 1st May 2020 and 30th September 2020.
  • Holiday accrued from 1st September 2019 to 31st August 2020 (25 days of holiday)
    will be frozen in a new fund Lønmodtagernes Dyrtidsfond. The fund will be called the
    Employees’ Fund for Receivable Holiday Pay and will manage employees frozen
    holiday.
  • The frozen holiday cannot be used or paid out until the employee leaves the labor
    market. In terms of the current scheme, this means that employers will pay the last
    year of accrued holiday when the employee retires.

The transition scheme ensures that the employee can take up to five weeks of paid holiday during the transition year, and that employers avoid paying for up to ten weeks of holiday in one year.

Number of holidays accrued
The number of accrued days (25 days) and the statutory allowance of 1 percent is not changed by the new act. The employees continue to accrue 2.08 days per month.

 

Kalyani Kutty
ABOUT THE AUTHOR
Kalyani Kutty
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Top Takeaways from APA Congress 2019

Last week, Replicon returned to the American Payroll Association Congress in Long Beach, CA. Amidst the excitement of greeting other payroll experts and influencers, I had the pleasure of attending…Read More

Global Compliance Desk – Maine

Maine Earned Employee Leave Employees employed with a private employer with 10 or more employees in Maine shall be required to provide “earned paid leave” to their employees. The Maine…Read More

Global Compliance Desk – Slovakia

Extra Pay for Night Work, Work on Weekends and Holidays Prior to the amendment to the Labour Code, employers did not have to pay wage supplements for work performed during…Read More

Demystifying the millennial workforce: 5 tips from Trunk Club’s Andrew Anderson Devine

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no…Read More

Common pitfalls in professional services organizations & how to avoid them (1/3)

The professional services organization (PSO) landscape is changing -- employees are harder to recruit and retain, a globalized marketplace increases competition for clients, clients want more for less, and management…Read More

Exempt vs non-exempt workers: simplify employee classification

In the United States, most jobs are governed by the Fair Labor Standards Act (FLSA), which classifies workers into two broad categories: exempt and non-exempt. Under the FLSA, non-exempt employees are…Read More
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates
  • Chat with us
    How can we help you?