Holiday pay and the Holiday Act: your rights

Holiday pay and the Holiday Act are topics that affect practically all employees in Denmark, yet the rules are often confusing. When do you accrue holiday? What is the difference between holiday days and holiday pay? And what happens if you change job in the middle of a holiday year? This guide gives you clear answers about your rights under the Holiday Act.

What is the Holiday Act?

The Holiday Act (ferieloven) sets the minimum rules for holiday for all employees in Denmark. The Act ensures that you as an employee have the right to:

• 25 paid holiday days per holiday year (equivalent to 5 weeks)
• Payment during the holiday, either as salary during holiday or as holiday pay
• The opportunity to take holiday, even if you are new to the labour market

The Holiday Act is based on concurrent holiday (samtidighedsferie), which came into force on 1 September 2020. This means you accrue and can take holiday in (almost) the same period, unlike the old deferred system.

The holiday year and the accrual period

Under concurrent holiday, the following applies:

• The holiday year (accrual year) runs from 1 September to 31 August
• The holiday-taking period runs from 1 September to 31 December the following year (16 months), giving you a little extra time to take the accrued holiday
• You accrue 2.08 holiday days per month and can take the holiday as you accrue it

New to the labour market

If you are new to the labour market, you can take paid holiday already in your first year of employment, as you accrue it (concurrent holiday).

Payment during holiday: salary during holiday or holiday pay

There are two models, depending on your employment:

• Salary during holiday (typically salaried employees): You get your normal salary while on holiday, and in addition a holiday supplement of 1% of the salary. The 1% is set by the Holiday Act; a collective agreement can provide a larger supplement (special holiday allowance), for example 1.5% or more.
• Holiday pay (typically hourly-paid employees): You do not get salary during the holiday, but instead accrue holiday pay of 12.5% of your salary, paid out when you take holiday. The percentage is higher precisely because you do not get salary during the holiday itself.

Example (holiday pay): If you have a salary of DKK 35,000 a month and accrue holiday pay for a whole year, the holiday pay is:

DKK 35,000 × 12 months × 12.5% = DKK 52,500

Taking and transferring holiday

When can you take holiday?

You have the right to take at least 3 weeks of continuous main holiday in the period 1 May to 30 September. The remaining holiday is agreed with the employer.

Can you transfer holiday?

Yes, but only the 5th holiday week (days 21 to 25) can be transferred to the next holiday-taking period, and only if you and your employer agree. The agreement must be in writing and made no later than 31 December, when the holiday-taking period expires.

The first 4 weeks (days 1 to 20) as a rule cannot be transferred. If you do not take them, they are lost (unless there is a holiday impediment such as illness or parental leave).

What happens to your 5th holiday week if it is not taken?

If the 5th holiday week is not taken and not agreed transferred, it is automatically paid out to you, no later than 31 March after the end of the holiday-taking period.

Holiday pay on a change of job

If you change job, you are entitled to have your accrued holiday pay paid out via FerieKonto (or an equivalent holiday fund). Your former employer has a duty to report and settle the holiday pay.

You can find your outstanding holiday pay at borger.dk / mit.feriekonto.dk.

What do you do if your employer does not pay?

If your employer does not pay or settle your holiday pay on time, you can:

1. Send a written demand
2. Contact FerieKonto/the Labour Market Holiday Fund and, if you are a member, your union
3. Bring the case before the ordinary courts (or the labour-law system in the event of a breach of a collective agreement)

Illness and holiday

If you fall ill immediately before or during your holiday, you may be entitled to replacement holiday. You must:

• Report sick to your employer as soon as possible
• Provide documentation of the illness (typically medical documentation)

If you fall ill before the holiday begins, you can as a rule choose not to take the holiday. If you fall ill during the holiday, you are entitled, after a number of waiting days, to replacement holiday for the remaining sick days. The replacement holiday is placed under the ordinary rules.

Holiday during notice

If you are in a notice period, your employer can as a rule require you to take holiday under the ordinary notice periods: 3 months for main holiday and 1 month for other holiday. Special limitations apply, however, including:

• If your notice period is 3 months or less, the main holiday as a rule cannot be forced into the notice period against your will
• If you are released from duties (fritstillet), the holiday is regarded as taken during the release period, if it can be placed with the applicable notice within the period
• Holiday that is not taken is settled as holiday pay

The employment contract and holiday

A clear employment contract should always describe the holiday terms: whether you get salary during holiday or holiday pay, a holiday supplement or special holiday allowance, any collective-agreement terms and the rules for holiday planning.

With LegalDock you can create a professional employment contract adapted to Danish law and containing correct holiday terms.

Frequently asked questions about holiday pay

When is holiday pay paid? If you get holiday pay (for example as an hourly-paid employee), it is paid out when you take holiday, typically via FerieKonto, where you request payment yourself. If you get salary during holiday, you get your normal salary plus a 1% holiday supplement.

Can I have my holiday pay paid out in cash instead of taking holiday? For the first 4 weeks of holiday the starting point is no, you have a duty to take the holiday. The 5th holiday week, by contrast, can be paid out if it is not taken or transferred.

Does the Holiday Act apply to self-employed people and freelancers? The Holiday Act applies to employees. If you are self-employed, you are not covered. Freelancers with an employment-like relationship can in certain cases be covered.

What is the difference between holiday pay and salary during holiday? Salary during holiday means you get your normal salary while on holiday (plus a 1% holiday supplement). Holiday pay (12.5%) is a separately calculated amount for employees who do not get salary during holiday. Many salaried employees get salary during holiday; hourly-paid employees typically receive holiday pay via FerieKonto.

Summary

The Holiday Act ensures you as an employee the right to 25 paid holiday days a year. Under concurrent holiday, you accrue and take holiday in (almost) the same period. If you get salary during holiday, you also get a 1% holiday supplement; otherwise you accrue 12.5% holiday pay. Always make sure your holiday terms appear clearly in the employment contract, so you avoid disputes.

Note: This article is for information purposes and does not constitute legal advice. If you have specific questions about your holiday situation, it is recommended to contact your union or a legal adviser.