Denmark: Changes to the Danish Holiday Act
The new Danish Holiday Act makes drastic changes to the holiday entitlement scheme for employees in Denmark. The Act will come into force on 1 September 2020, with a transitional period beginning 1 September 2019. The details are as follows:
The method of holiday accrual will change from staggered to concurrent. Under the current rules, employees may have to wait up to 16 months from the accrual of the holiday before they can take it. The new Act introduces the concurrent holiday, which means that employees will be allowed to take holiday the same year in which it was accrued. This also means that new employees can take paid holiday during their first year of employment.
New holiday year
The period in which accrued holiday can be taken has been extended from 12 to 16 months. Under the new Act, holiday will be accrued from 1September to 31 August of the following year, and can be used between 1 September and 31 December.
During the transitional period, employees could potentially take paid-leave earned under both the present rules and the new rules. This could result in the accrual of double holidays which would be problematic for employers and the national economy. To avoid such issues, a transition scheme has been introduced. The details are as follows:
- Holiday accrued from 1 January 2019 to 31 August 2019 may be used between 1 May 2020 and 30 September 2020.
- Holiday accrued from 1 September 2019 to 31 August 2020 will be frozen and not paid out to the employee until they retire from the labour market.