The Danish Government and most of the other parties have now reached agreement on the Bill to amend the Holiday Act.
On 22 August 2017, the Holiday Act Committee issued its draft Bill to amend the Holiday Act. The Danish Government reached agreement with the Social Democratic Party, the Danish People's Party, the Alternative, the Social-Liberal Party and the Socialist People's Party which is directly based on the draft Bill issued by the Holiday Act Committee.
This means that with effect from 1 September 2020 a simultaneous accrual and holiday year will be introduced in Denmark, with employees accruing and taking their holiday over the same period. In addition, new hires will be entitled to holiday with pay in their first year of employment.
In order to ensure a smooth transition to the new regime, a transition period will start on 1 September 2019. Holiday accrued in the period from 1 September 2019 to 31 August 2020 will be transferred to a special fund and will be paid out when the employee retires.
The Bill will now begin its journey through the Danish Parliament and is expected to be introduced in November 2017. Norrbom Vinding will follow the Bill on its progress through the Danish Parliament.
The content of the above is not, and should not be a substitute for legal advice.