Summary
Under the ‘simultaneous holiday’ scheme, a new employee can take paid holiday as early as the month after the holiday entitlement has been accrued – 2.08 days per month. Employees are always entitled to take up to 5 weeks’ holiday, but only the days they have accrued are paid; the remainder must be taken at their own expense or as advance holiday by mutual agreement.
Short answer
The holiday entitlement rules for new employees work differently to what many people think: under the ‘simultaneous holiday’ scheme, a new employee accrues 2.08 days’ holiday per month and can take them as early as the following month. A new employee therefore does not have to wait up to 16 months for paid holiday, as was the case under the old holiday legislation. Furthermore, employees are always entitled to take up to five weeks’ holiday – but only the days they have accrued are paid; the rest must be taken at their own expense or as advance holiday by mutual agreement.
Concurrent holiday entitlement: new staff can take holiday quickly
Previously, holiday entitlement had to be accrued over the course of one year before it could be taken the following year – the so-called “holiday trap”, which could mean that a recent graduate had to wait a long time for paid holiday. With concurrent holiday entitlement, employees accrue and take their holiday within roughly the same period. An employee who starts on 1 January can therefore take a couple of days’ paid holiday as early as February and around a week’s holiday during the spring – because by then they will have accrued just over a week’s holiday entitlement.
How to accrue holiday entitlement
The employee accrues 2.08 days’ holiday per month of employment – equivalent to 5 weeks’ holiday over a full year – regardless of whether you work full-time, part-time or in a student job. Holiday entitlement is accrued during the holiday year from 1 September to 31 August and can be taken right up until 31 December of the following year. This gives a holiday entitlement period of 16 months, so that any holiday days accrued towards the end of the year can still be taken. If an employee starts in the middle of the holiday year, holiday entitlement is accrued on a pro rata basis from the date of employment.
Entitlement to 5 weeks’ holiday – but not always with pay
A new employee who has not yet accrued their full holiday entitlement still has the right to take up to 5 weeks’ holiday – but there is no obligation to do so. Any days that have not been accrued must be taken at the employee’s own expense. For a monthly-paid employee, this means that 4.8 % is deducted from their monthly salary for each day of holiday taken that has not been accrued. This allows the employee to take time off alongside their colleagues, even if they have not yet accrued enough paid holiday entitlement. If the employee has accrued holiday pay from a previous job, this can be used for holiday with you.
Early holiday as an option
You can also agree that a new employee takes paid holiday in advance – that is, uses holiday days before they have been earned, on the understanding that they will “work them off” over the course of the holiday year. This requires an agreement; the employee is not entitled to it. If the employee takes advance holiday and leaves the company before it has been offset, you can deduct the value from their final pay. Read more about advance holiday here.
Main holiday and notice period
A new employee is also entitled to three weeks’ consecutive annual leave during the main annual leave period from 1 May to 30 September. However, you may only require an employee to take the holiday that has actually been accrued by the time the holiday begins. If you need to give notice of holiday, the standard notice periods apply: three months for annual leave and one month for other types of leave.
Please note the following
The rules in the Annual Leave Act for new employees are easiest to manage if you discuss annual leave at the time of recruitment: how much holiday the employee has carried over from a previous job, whether advance holiday should be agreed, and how any summer holiday or collective holiday closure can be covered. A payroll system automatically keeps track of accrued holiday entitlement, so you can always see how many paid holiday days a new employee has available – and avoid promising time off that isn’t covered.
We’ll help you organise holidays for new staff members
It’s easy for new staff to miscalculate holiday entitlement, unpaid leave and advance payments – and these errors affect both the employee’s holiday entitlement and their payslip. At Dansk Løn Service, we keep track of this as an integral part of our payroll processing. You may also want to read 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.