Summary
You may require employees to take holiday within the framework of the Holiday Act: annual leave with three months’ notice, and other leave with one month’s notice. In the event of a collective holiday closure, you may close for a maximum of 5 weeks per year and must set aside holiday days for this period. If an employee has not accrued sufficient holiday entitlement, you must either grant holiday in advance or risk having to pay their salary.
Short answer
Yes, as an employer, you can require your staff to take holiday – this is known as compulsory holiday – provided you remain within the framework of the Holiday Act. Notice of main annual leave must be given at least 3 months in advance, and notice of other leave at least 1 month in advance. If you close the business collectively for the holiday period, the same notice periods apply, and you must ensure that employees have sufficient annual leave entitlement to cover the closure period.
Can you decide when the employee takes their holiday?
The basic principle is that the timing of the holiday is agreed upon. However, if you cannot reach an agreement, it is ultimately up to you to decide on the holiday, taking operational considerations into account. You must, however, first discuss this with the employee and, as far as possible, accommodate their wishes – including the wish to take their main holiday during their child’s school summer holidays. And you must announce the dates of the holiday as early as possible.
Notice periods
If you impose a holiday, the following deadlines apply:
- Main holiday (3 weeks): at least 3 months’ notice.
- Other holiday / remaining holiday (up to 2 weeks): at least one month’s notice.
The main holiday must consist of three consecutive weeks“ holiday during the main holiday period from 1 May to 30 September. The notice period may only be waived if special circumstances prevent it – you cannot agree to waive the deadlines in advance in the contract, as was possible under the old holiday law. The law does not require written notice, but you should always give notice in writing and be specific (dates, not just ”three weeks in July’), so that your documentation is in order.
Collective holiday closure
If you keep the business – or a specific part of it – completely closed, you can require employees to take holiday during that period. Three things are important:
- You may only close for holidays for a maximum of 5 weeks per holiday year, as the employee is entitled to a maximum of 5 weeks’ holiday.
- A total closure of three weeks may only take place during the main holiday period (1 May–30 September).
- You must book employees’ accrued holiday entitlement up to the closure – and may therefore refuse to allow an employee to take holiday before then, so that there is enough left for the closure period.
If the employee has not accrued enough holiday entitlement
If an employee who has been employed for the entire previous holiday year has not accrued enough paid holiday to cover all the days the business is closed – for example, due to maternity leave or other leave – you must provide holiday in advance against offsetting it against holiday entitlement accrued subsequently. If, on the other hand, you had the opportunity to ensure that the employee had sufficient holiday entitlement but failed to do so, you may end up having to pay wages during the closure – calculated on the basis of the usual pay for the last 4 weeks. A newly appointed employee who has not yet had time to accrue holiday entitlement must, as a general rule, take the remaining days at their own expense and may, in certain cases, apply for holiday allowance from their unemployment insurance fund.
Can you change a holiday that has already been booked?
As a general rule, an agreed or notified holiday is fixed. You may only change it if significant, unforeseeable operational considerations make it necessary – and in that case, you must compensate the employee for any financial loss they may incur, such as a cancelled trip.
We’ll help you plan your holiday
It’s easy to make mistakes when it comes to giving notice, holiday closures and booking holiday leave – and these errors can end up costing you wages during the closure. At Dansk Løn Service, we keep track of holiday entitlements and deadlines as an integral part of our payroll processing. Read more about advance holiday and our Guide to the new Holiday Act, or Contact us.
The rules have been simplified here. If in doubt, always seek specific guidance on borger.dk or from a payroll officer.