BUHR

April 11, 2024

Holiday season is approaching - what do you as an employer need to be careful of?

As an employer, there is a lot to think about when the holiday period approaches. Not only should the holiday be a well-deserved break for your employees, but it should also be planned in accordance with the Holiday Act and ensure good solutions for all parties. Did you know that as an employer, you have a duty to ensure that your employees take their full holiday?

We know this may seem overwhelming, but fear not!

BUHR has compiled some golden advice to help you navigate vacation planning, so you can be confident that both the company's and employees' needs are taken care of.

Time of vacation

The employer decides when the holiday will take place (has the right to control), but remember that you should always discuss the timing of the holiday with your employees first.

Employees can request to take their main holiday, i.e. 3 weeks of holiday, during the main holiday period, which is between June 1 and September 30, cf. the Holiday Act.

Notification

Employees have the right to be informed of their holiday plans as early as possible, and no later than two months before the holiday begins. This two-month deadline applies unless there are special circumstances that prevent this, such as operational problems. There may also be cases where there is too little time left in the holiday year to meet the deadline.

Sick leave and vacation

Employees with graded sick leave can take their vacation in the normal way and according to the Holiday Act they are to be treated as healthy. The employee cannot choose to take vacation days only on days they should have been at work.

If an employee is on sick leave for 100%, it is up to the employee to assess whether they are healthy enough to take vacation, but the employee must always arrange vacation with the employer first. Vacation postpones the maximum sick pay date and may in most cases be appropriate to take.

Extra week of vacation

The year employees turn 60, they are entitled to an extra week of vacation. When the extra vacation week is to be taken, the employee decides. However, an agreement can be made that the extra vacation will not be taken at certain times of the year, for example when the company is in its peak season.

Extra week of vacation

The year employees turn 60, they are entitled to an extra week of vacation. When the extra vacation week is to be taken, the employee decides. However, an agreement can be made that the extra vacation will not be taken at certain times of the year, for example when the company is in its peak season.

New employee

As a general rule, employees cannot be ordered to take more vacation than their earned vacation pay covers. This means that employees who have not earned vacation pay in the previous year can object to taking vacation. Vacation pay from both current and previous employers must be included here. Please note that if the employer has a joint vacation scheme, employees can, however, be ordered to take vacation even if no vacation pay has been earned.

New employees who start their job after August 15 but before September 30 cannot claim vacation during the main vacation period of the same year, but can take all vacation without pay after September 30. New employees who start their new job on October 1 or later are only entitled to one week of vacation plus any agreed vacation.

Carry over to next year

By entering into a written agreement between employer and employee, up to two weeks of vacation can be transferred to the next year.

Advance vacation

Employees may request to take up to two weeks of advance vacation by transferring it from the following vacation year. This requires a written agreement with the employer. Advance vacation beyond this cannot be agreed.

Holiday pay

Most employers deduct the salary for all vacation weeks at the same time as the vacation pay is paid in June. The vacation pay constitutes 12 percent of the salary that entitles employees to vacation pay, if employees have five weeks of vacation. The basis for vacation pay is listed on the last pay slip for the accrual year (the year before).

Paid vacation days?

The employer is not entitled to cancel the statutory holiday (4 weeks and 1 day) and pay wages in compensation for those holiday days. This also applies when the holiday has not been taken due to illness or parental leave.

However, the contractual part of the holiday (4 days) can be paid out, unless there are restrictions on this in the agreement that gives the right to extra holiday. In that case, the employer should take a position on this and implement it equally for all employees.

BUHR's golden advice on how to plan your vacation and at the same time comply with the Holiday Act:

1. The main holiday period is between June 1 and September 30 and employees can request to take their main holiday (3 weeks) during this period.

2. Always start by discussing the determination of the vacation with your employees. If you cannot agree on the vacation schedule and when each individual can take vacation, the employer decides when the vacation will take place.

3. Employees have the right to be notified of the vacation schedule as early as possible, and no later than two months before the vacation begins.

4. Employees with graded sick leave can take their vacation in the normal way.

5. An employee who is on sick leave for 100% considers whether they are healthy enough to take a vacation, but must arrange the vacation with their employer like everyone else.

6. The year employees turn 60, they are entitled to an extra week of vacation, which they decide when to take.

7. New employees cannot be required to take more vacation than the earned vacation pay covers.

8. New employees who start work after August 15 cannot claim vacation during the main vacation period.

9. By written agreement, employees can transfer or cancel advance vacation of up to two weeks.

10. Holidays cannot be paid out.

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