The starting point of the Holiday Act is that the holiday should be taken during the holiday year. However, both the Holiday Act and the collective agreements allow for parts of the holiday to be carried over to the following year.
Transfer of vacation can be done in the form of:
1. Agreement between employer and employee
2. Automatic transfer of statutory holiday
Agreement on transfer of vacation to next year
According to the Holiday Act, the employer and employee can enter into an agreement to transfer up to two weeks of statutory holiday. In addition, the four contractual holiday days that most employees have can be transferred unless a collective agreement or other agreement states otherwise.
The Holiday Act only allows for the transfer of holiday to "the following year" and there is therefore no opportunity to make an agreement beyond the next year.
The employer may, by virtue of the right to manage, determine the time for the transferred holiday. The only exception is if the agreement between the employer and the employee specifically states that it is the extra holiday for employees over 60 years of age that is transferred; in that case, the employee has the right to determine the time for the holiday to be taken.
When the employer and employee agree to transfer vacation, this should be documented through a written agreement. A written agreement can, for example, be an email confirming the transfer of vacation.
Another argument for entering into written agreements when transferring vacation is that these can support the employer's obligation to ensure that the employee takes full vacation. The agreement can be made at any time of the year, and it can avoid situations where the employee demands to take the remaining vacation before the end of the year.
An agreement on transfer requires agreement between the parties, and if agreement is not reached, the vacation days must be taken in the vacation year.
Automatic transfer
In some specific cases, the statutory holiday will be automatically carried over to the following year. The transfer takes place automatically if the holiday has not been taken during the holiday year in accordance with the provisions of the Holiday Act, or if illness or parental leave is the reason for the holiday not being taken. Automatic transfers can be avoided by handling holiday takeover systematically throughout the year.
Payment of vacation days
Statutory holidays cannot be cancelled or paid out by the employer. Contractual holidays are not regulated by the Holiday Act and there is therefore no general rule regarding their automatic transfer. Unless otherwise agreed, the employer can therefore decide whether these should be transferred or paid out.
BUHR helps you
It is important for both employers and employees to have control over the rules for transferring vacation to ensure good planning and avoid legal problems. We at BUHR are available to help you as an employer to have a more structured approach to vacation planning and thus contribute to both better operations and compliance with legal requirements.
