Transfer or Payment of 5th Holiday Week in Denmark
- 2 minute read
- Payroll & HR
On the pay slip for November, it is important to check whether there are any remaining holiday leave attached to the holiday period for the 2023/24 holiday year. Because any remaining holiday leave must be used no later than 31 December. However, there is a special rule for the so-called 5th holiday week, which gives employees more options according to the new Danish holiday law. If it is not possible to use the 5th holiday week in time, an agreement on the transfer of the 5th holiday week can be drawn up in writing no later than the 31 December. Otherwise, you risk the holiday being lost or having to be paid out.
What is the 5th holiday week?
According to the new holiday law, employees in Denmark are entitled to five weeks’ holiday a year. The first four weeks of the holiday must as a rule be used, but the 5th holiday week (i.e. five holiday days out of 25, of which 20 days are the directive-protected 4 weeks) can either be transferred to the next holiday year or paid out. These options can create flexibility for the employee, but it also requires a written agreement between employer and employee if the holiday is to be transferred.
Payment of the 5th holiday week: What are the requirements?
If the 5th holiday week cannot be transferred, payment will often be the most obvious solution. However, there are certain requirements that must be met in order for this to be paid out. The employee must have been employed full-time throughout the period of which the holidays should have been used in order for the payment to be made automatically. If the employee has had part-time employment or periods of reduced time, they must instead complete a declaration of faith and law, in which they confirm that:
The payment relates to holidays that are in addition to the four weeks that the Holiday Act requires are used.
The employee has not received social benefits during the period.
The employer is responsible for storing the declaration of faith and law for five years as documentation that all rules have been complied with.
Can holiday leave be carried over to next year without an agreement?
No, according to the Holiday Act, the transfer of holiday requires an active, written agreement that protects both the employee and the employer. If this agreement is not in place by 31 December, the employer must pay out the remaining holiday. This means that employees and employers should decide on the 5th holiday week well in time and prepare documentation that can ensure compliance with the holiday law.
At mighty admins, we can assist you with: Reporting and payment of salary, tax, pension, ATP and holiday Record of leave and holiday in advancePayroll administration of employees
