30th September, 2017, is the cut-off date for when an employer has to calculate the amount of holiday pay that has not been spent and pay it into a holiday fund. This is a reminder from Dansk Erhverv this week. The deadline for timely payment is 15th November, and TimePlan can be a great help to keep track of earned and settled holidays.
If an employee has not used his or her 5 weeks of holidays, the employer is obliged to calculate the number of holiday days not used by 30th September after the end of the holiday year. The deadline for timely payment of holiday pay is 15th November. TimePlan can help you calculate the number of holidays left, so the calculation is done correctly.
Complies with agreements
If the employee is covered by a collective agreement by a Dansk Erhverv Employer, the payment must be transferred into the holiday fund as stated in the agreement. TimePlan keeps track of all current collective agreements. The Dansk Erhverv Employer has a number of independent holiday funds. All other employers must pay the holiday money to the Danish Labor Market Vacation Fund.
If the holidays to be reported and paid to the Labor Market Vacation Fund have not been reported and paid by 15th November, interest will be paid at 1.5% per annum. per commenced month.
Payment of the 5th holiday week
The employee may ask to receive the 5th holiday week as a payment if it is not held and the parties have not agreed to transfer it to the next holiday year. In that case, the employee must complete a special form by applying for unsolicited holiday pay and sending it to the employer. TimePlan can help with the individual employee’s holiday balance.
Transfer of vacation
The employee can make an agreement with the employer that holidays not spent can be transferred to the next holiday year. How much can be transferred can be stated in an agreement and, if necessary, a special form must be completed by 30th September. The form is also included in the agreement.
Employees, who are not covered by a collective agreement, can transfer holidays beyond 20 holiday days. The agreement must be signed in writing by 30th September.
The company may be fined if unwarranted holiday pay is not settled for the relevant holiday fund – of course, provided there are no written agreements regarding holiday transfer. The Danish Ferielov office annually takes a number of companies for sampling, where documentation for holiday transfer and settlement to the holiday fund is being reviewed. Again, TimePlan can help to avoid penalties by keeping track of holidays for each employee.