Political agreement on the Bill to amend the Holiday Act

The Danish Government and most of the other parties have now reached agreement on the Bill to ‎amend the Holiday Act.

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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.

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