Holiday entitlement: What you need to know as a manager

Christmas is fast approaching. That's why it's useful for you as a manager to keep track of your employees' holiday status. As an employer, you can find out what happens in the event of illness during the holidays, and what the holiday rules are for new employees. Here's what you need to know when it comes to your employees' holiday entitlement.

The Trevi Fountain in Rome, the Eiffel Tower in Paris, or kayaking in South America may be some of the first things that come to mind when you think of the word vacation...

How many vacation days is the employee entitled to?

Employees are entitled and obliged to take at least 25 working days' holiday each year. Laws relating to holiday entitlement are set out in the Holiday Act, the purpose of which is to ensure that all employees receive paid holiday. The Holiday Act is a protective law. This means that it is not legal for employers to introduce worse rights for employees than those regulated by law, unless the law itself allows for this. Check out our management handbook for more information.

Length of holiday

When the law states that employees are entitled to 25 working days, this applies to weekdays and Saturdays, not Sundays and public holidays. In other words, six working days are equivalent to one week, and the employee is therefore entitled to four weeks and one day of holiday each calendar year.

However, many employees have better rights in the form of a collective agreement or individual employment contract. For example, it is common to have a fifth week of vacation in many companies. In addition to the 25 days stipulated in the law, employees who reach the age of 60 are entitled to an extra week's holiday that they can decide when to take.

It is unlawful for an employer not to ensure that an employee takes holiday, and this may result in liability for damages. Nevertheless, the employee can refuse to take holiday if the accrued holiday pay does not cover the salary during the holiday. This applies unless the company suspends operations in whole or in part in connection with the holiday. You can read about more relevant topics such as working hours, sick leave and employee benefits in our employee handbook.

Transfer of vacation

If all holiday is not taken during the current holiday year, the employee may transfer up to two weeks' holiday to the following holiday year. This must be agreed individually with the employer.

According to the Holiday Act, the main rule is that all holiday must be taken before the New Year. However, it is possible to enter into a written agreement to transfer up to 12 working days of holiday to the following holiday year, cf. section 7 (3) of the Holiday Act.

If no transfer of holiday has been agreed, or if holiday has not been taken by the end of the holiday year, this holiday will automatically be transferred to the next holiday year. This also applies where the failure to take holiday is due to illness or parental leave. It is not possible to pay out unused holiday as a result of the Holiday Act.

Employees are entitled and obliged to take at least 25 working days' holiday each year.

Contractual vacation

The Holiday Act's rules on the transfer of holiday do not apply to any contractual holiday days, which may be five weeks. The rules in the Holiday Act do not apply to contractual holidays. Here, separate provisions may follow from the employment contract or collective agreement.

For companies that have contractual holiday, i.e. 5 weeks' holiday in many contexts, it may be stated that contractual days can also be transferred to the following holiday year by written agreement. This is in addition to holiday under the Holiday Act. This must be agreed between the employer and employee.

Time of vacation

As an employer, you must discuss the timing of the holiday with your employee or the employee's union representative in good time before the holiday is taken. If no agreement is reached, you as the employer have the last word in the matter. You can still demand a continuous holiday period of three weeks during the main holiday. This means the period from June 1 to September 30. In addition, the employee is generally entitled to know when he/she will be taking his/her holiday no later than two months before the holiday is to be taken.

If all holiday has not been taken during the current holiday year, the employee may transfer up to two weeks' holiday to the following holiday year. This must be agreed individually with the employer.

Sick leave during the holidays

If your employee falls ill during the holidays, he/she can have the vacation days postponed. However, this requires that the employee is 100% unable to work and that it is documented with a medical certificate. If these conditions are met, the employee can claim to have their holiday postponed corresponding to the holiday days they have been ill. The same rules apply if the employee is on 100% sick leave before the holiday begins, but then the employee must submit a claim for postponement no later than the last working day before the holiday.

Holiday at birth and adoption

The company cannot require an employee who is on full leave in connection with childbirth and adoption to take holiday during the leave period. This also applies if the caregiver is on unpaid care leave in connection with the birth. If holiday has nevertheless been scheduled during these periods, you can ask for your holiday to be postponed.

If your employee falls ill during the holidays, he/she can have the vacation days postponed. However, this requires that the employee is 100% unable to work and that it is documented with a medical certificate.

Holiday during notice period

In the event of dismissal, the employer may not take holiday during the notice period without the employee's consent, unless the notice period is at least three months. If the employee has three months' notice, the holiday can be taken during the notice period within the framework of the Holiday Act. If the employee resigns and wishes to take his/her holiday during the notice period, he/she may demand this if the holiday has not been taken by September 30. However, this does not apply if the notice of termination is submitted after August 15.

Holiday for new employees

New employees who start work before October 1 are entitled and obliged to take full holiday in the year they start. Employees who start on October 1 or later are entitled to one week's holiday. The prerequisite is that the employee has not taken their holiday with their previous employer. In order for the employer to require the employee to take holiday, it is also a prerequisite that the employee has earned holiday pay with a previous or existing employer.

Who is entitled to paid vacation?

All employees have the right and obligation to take at least 25 working days of vacation each year.

How is vacation calculated?

Employees are entitled to 25 working days. This does not apply to Sundays and public holidays. Six working days therefore correspond to one week. Employees are therefore entitled to four weeks and one day of holiday each calendar year. Note that some employees may also have individual agreements. This may mean that a fifth week of holiday is included. Employees over the age of 60 have one extra week of holiday that they can decide when to take.

What about vacation when employees are on sick leave?

If your employee should fall ill during the holiday, he/she can have the vacation days postponed. However, this requires documentation from a GP or other form of medical certificate.

What happens when vacation is not taken?

If all holiday is not taken during the current holiday year, the employee may transfer up to two weeks' holiday to the following holiday year. This must be agreed individually with the employer.