FAQ: Employment Law In Denmark ' Part 2

• Published date: 27 January 2021
• Subject Matter: Employment and HR, Contract of Employment, Employee Benefits & Compensation, Employee Rights/ Labour Relations
• Law Firm: Poul Schmith
• Author: Mr Andreas Kirkegaard Dam and Jonas Blegvad Jensen

While part 1 of the FAQ covered the legal framework for Danish employment law, employee categories and employment contracts, this part 2 of the FAQ will deal with topics relating to absence from work. More specifically, it will cover 1. holiday, 2. sickness absence and 3. pay and maternity, paternity and parental leave.

1. Holiday

How does the Danish holiday system work?

Under the Danish Holiday Act, employees are entitled to five weeks of holiday (paid or unpaid) each holiday year in addition to public holidays. The Danish Holiday Act underwent material amendments recently as a staggered holiday scheme (holiday accrued in one year to be taken in a subsequent year) was abolished and a concurrent holiday scheme was introduced. The concurrent holiday scheme allows employees to take paid holiday continuously as holiday is accrued, as further explained below.

When is paid holiday accrued?

Employees accrue 2.08 days of paid holiday each month of employment. In total, 25 days of paid holiday are accrued each holiday year (starting each 1 September and ending the following 31 August).

How is holiday taken?

Paid holiday may be taken in each "holiday taking period" (16 months), i.e. the holiday year plus an additional four months. For example, the current holiday taking period runs from 1 September 2020 to 31 December 2021.

Employees are entitled to take at least three consecutive weeks (the main holiday) of their holiday entitlement of five weeks in the period between 1 May and 30 September. Generally, the scheduling of holiday should be agreed in advance with the employer. If no agreement on the taking of holiday can be made, the employer may demand that the employee takes his/her main holiday subject to three months' notice and takes other holiday subject to one month's notice.

What if an employee wants to take paid holiday before it is accrued?

The employer and the employee may agree that the employee may take paid holiday "in advance", i.e. take paid holiday before it has been accrued. The employer is not under any obligation to enter into such agreements.

May the employee postpone accrued but untaken holiday?

It is possible for the employer and the employee to agree that accrued but untaken paid holiday in excess of four weeks (i.e. the 5th week of statutory holiday) is to be transferred to the following holiday taking period. If no such agreement is made, any such remaining paid holiday will be paid out to the employee by default.

What about additional...