As the end of 2024 approaches, it not only marks the conclusion of another calendar year but also presents payroll administration with some practical challenges in managing remaining holidays and ensuring compliance with Danish holiday regulations.

In this article, we have therefore compiled and answered the most frequently asked questions about the remaining holiday. Please note that our focus is on salaried employees and different rules may apply for hourly paid employees:

1 What is the difference between the holiday year and the holiday settlement year?

 The Danish holiday year runs from 1 September to 31 August of the following year.

All employees will accumulate 25 days of holiday per holiday year, meaning the employees will accumulate 2.08 holidays per month.

The holiday earned during a holiday year can be taken in the period from 1 September until 31 December of the following year. The holiday settlement year is therefore the holiday year plus the subsequent four months.

2 How many days of holiday must be settled?

As a general rule, 20 days of the accumulated holidays must be settled in the holiday settlement year and cannot be paid out or transferred to the next settlement year.

If the 20 days are not settled, they must at a later date be paid into the Labor Market Holiday Fund (Arbejdsmarkedets Feriefond) or another private holiday fund and the employee thereby loses the entitlement.

 3 What if the employee is prevented to take holidays due to sickness, maternity leave etc.?

If the employee is prevented from taking the holiday within the holiday settlement year due to a holiday obstacle, such as illness or maternity leave, up to 20 days of holiday can be transferred to the following holiday settlement year. If the employee is still sick or another holiday obstacle occurs in the following holiday settlement year, the transferred days of holiday can be paid out to the employee.

4 How is holiday transferred?

Holiday that exceeds 20 days of holiday (the so-called 5th holiday week) can by agreement be transferred to the following holiday settlement year, currently to the period 1 September 2024 to 31 December 2025.

The employee has no legal right of transfer of these holidays, and the transfer of holiday always requires an agreement between the employer and the employee. This agreement must be concluded no later than 31 December 2024.

We recommend a short-written agreement between the employer and employee, so the payroll administration can register the changes. A confirmation by email is also sufficient.

5 When can the 5th week of holiday be paid out?

If the employee was only able to take 20 days of holiday and no agreement was made to transfer the remaining holiday, the employee is entitled to payment for the 5th week of holiday.

Employers must pay the employee for holiday that exceeds 20 days and that has not been taken or transferred to the following year, no later than 31 March 2025. Payment to the employee may also be made during the period from 1 September to 31 December 2024, if the employer and employee agree.

If the employee has not been employed during the entire holiday settlement year and/or if the employee has worked part-time during the same period, then a sworn declaration must be signed in order for the employee to receive payment for the 5th week.

6 Can the employer impose the settlement of the remaining holiday until December 31, 2024?

If the employer wants the remaining holiday to be held and not transferred or paid out, the employer may order the holiday to be taken with one month’s notice. However, as we are near the end of the year, it will be difficult to demand the employees to take their holiday with the required notice.

Recommendation

We recommend that all employers review the employees’ holiday balances and decide how the holiday balances should be handled. For companies with many employees, it is advisable to regulate such issues in the personnel handbook or a holiday policy.

If you have questions about holiday or would you like to receive a form to arrange with your employee(s) to transfer remaining holiday into the following holiday settlement year, please contact us.

Your labor law team

Jana Behlendorf
Attorney at Law
E. jana.behlendorf@lead-roedl.dk
T. +45 23 24 60 22

Karina Helena Svensson
Attorney at Law
E. karina.svensson@lead-roedl.dk
T. +45 23 84 06 28

Navina Jegarubanathan
Assistant Attorney
E. navina.jegarubanathan@lead-roedl.dk
T. +45 60 52 43 04

Julie Støttrup Nielsen
Assistant Attorney
E. julie.nielsen@lead-roedl.dk
T. +45 20 67 67 21