Proposed new Danish Holidays Act

Date 7 sep. 2017
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Introduction

The Holiday Act Committee has recently presented its report with a proposal for a new Holiday Act which, in particular, will imply that the concept of concurrent Holidays (i.e. Holidays accrued and taken during the same period) is introduced as a new principle in the Danish Holiday Act. The new Holiday Act will enter into force in September 2020 with a transitional scheme from 2019.

 

From staggered Holiday to concurrent Holidays

This Bill does not change the fact that employees accrue 25 days of paid Holiday per year. However, provided that the Bill is adopted, it will change the accrual period so that instead of following the calendar year, the accrual period will run from 1 September to 31 August.

 

The period for taking the holiday accrued is also changed seeing as with the new scheme, the Holiday is accrued and taken within the same holiday year, which runs from 1 September to 31 August. This is a significant change in relation to the current scheme under which holiday is accrued during the calendar year from 1 January to 31 December and is taken in the following holiday year.

 

According to the Bill, the employee will have an additional four months to take the holiday accrued, so that with the new scheme the holiday year will in reality run from 1 September to 31 December the following year, meaning that the employee will have a total of 16 months to actually take holiday accrued.

 

The change is primarily motivated by a desire to avoid that new employees must wait 16 months before they are able to take paid holidays, as is the case now where any new employee who takes up a position from 1 January is only entitled to paid holiday from 1 May the following year.

 

Consequences

If passed, the Bill will result in a significant change to the current rules of accrual of holiday, and it will require major changes to existing staff policies, employment contracts and collective bargaining agreements.

 

Moalem Weitemeyer Bendtsen will continue to follow the introduction of the Bill and its further process.

 

 

If you have any questions or requests for further information about the Bill or about Danish labour law in general, please contact partner Pernille Nørkær (pno@mwblaw.dk) or trainee Konrad Joe Frank (kfr@mwblaw.dk).
 

The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of any reader’s use of the above as a basis for decision or considerations.