The new Danish Holiday Act will come into force on 1 September 2020. The new Act will put an end to the current rules on staggered qualifying year and holiday year. However, already in 2019, a transitional period will take effect, and it means that you, as an employer, need to understand how the new Holiday Act will affect your company.
NJORD Law Firm can assist you with the preparations, so that you will be ready for the coming into force of the new rules. We can assist you with the drafting of addendums to employment contracts, if required, and new agreements on special holidays. Naturally, we also offer advice on the existing Holiday Act. In addition, we can draft holiday report forms that may be used for planning the holiday year.
The new Danish Holiday Act introduces concurrent holiday. It means that the employees accrue and take holidays within the same year. As a result, there will be a period where the employees accrue double holidays.
The Act contains a transitional period to prevent companies from suffering great losses. The transitional period implies that the holidays accrued by the employees in the period from 1 September 2019 to 31 August 2020 will be “frozen”.
As an employer, you can decide whether you want to transfer the money to the Employees’ Fund for Residual Holiday Funds, or whether you want to deposit the money on your company’s account. It may be difficult to understand what is the best solution for your company, and NJORD’s lawyers can assist you in determining what is in your company’s interest.
Furthermore, the amendments to the Holiday Act may imply that you are required to amend the employment contracts and the personnel policies. NJORD Law Firm can assist you with the drafting of addendums to the employment contracts and new personnel policies that are tailored to suit your company.
Special holidays are not regulated by the Holiday Act, nor will they be regulated by the new Holiday Act. However, many companies have made agreements regarding special holidays. Some collective agreements cover special holidays; alternatively, special holidays can be agreed upon in individual agreements or personnel policies.
If your company is not covered by a collective agreement but has made independent agreements on special holidays, these agreements must regulate the exact terms that apply to the special holidays in your company. How and when do you qualify for special holidays? And what happens when an employee leaves the company?
If the agreements are not sufficiently clear, they may result in claims for compensation pursuant to the provisions of the Danish Act on the Employer’s Obligation to Inform the Employees of the Conditions Applicable to the Employment. NJORD Law Firm can assist you with the drafting of policies on special holidays in order to avoid possible disputes.
Before the new Holiday Act comes into force, it would be a good idea to update any existing agreements on special holidays, since these are often based on the Holiday Act. For example, when the qualification for special holidays follows the qualifying year and the holiday year.
How can we help?
Advice on the existing and the new Holiday Act
Advice on the transitional period
Drafting of addendums to employment contracts
Drafting of holiday request forms
Drafting of policies on special holidays
Amendments to existing agreements on special holidays
“The ‘proactive, friendly and exceptionally professional’ group at NJORD Law Firm focuses on employment litigation, agreements, incentive schemes and data protection matters. Miriam Michaelsen leads the practice and is an expert in handling contracts, disputes and negotiations with unions; and Lars Lokdam specialises in transactional issues.”
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