Danish Holiday Act changes in the pipeline

 The Danish Government has announced that the Danish Parliament must review and amend the existing Holiday Act. Among other things, this amendment should make it possible for employees to take paid holiday during the first period of employment. This decision is inter alia a result of recent critique of the Danish Holiday Act from the EU Commission which has estimated that the current Holiday Act is not consistent with the rules provided in the Working Time Directive, regarding the right to paid holiday.

In accordance with the current Danish Holiday Act, the employee accrues paid holiday throughout the calendar year. The employee must take this paid holiday in the subsequent holiday year, running from May 1^st to April 30^th.

As a consequence, many newly educated employees have not earned the right to paid holiday at commencement of their first employment. Hence, such newly hired employee is not entitled to receive pay during holiday. Instead, each vacation day will be deducted from the employee’s paycheck. In practice, an employee commencing employment on January 1^st, may have to wait up to 16 months before it is possible to take out paid holiday.

Therefore, the Government has appointed a committee to examine how the Holiday Act can be amended to bring it into line with EU Law. The Danish Minister of Employment and former CEO of the Danish Employers’ Confederation, Jørn Neergaard Larsen, has expressed that: “We must alter our current system so holiday is taken concurrently with the accruing of holiday entitlement. This upcoming amendment to the existing Holiday Act will mostly influence newly educated and those who change jobs.”   

Lund Elmer Sandager will closely monitor the forthcoming work and conclusions of the committee. If you have any questions to this matter or to the Danish Holiday Regulation, feel free to contact our Employment law team.