By 30 November 2021 at the latest, employers must notify the Holiday Allowance Fund if they wish to continue to retain the frozen holiday allowance within the company. You may retain the funds within the company until, for example, the individual employee reaches retirement age.
A great many companies (around 40,000) have not yet notified the Holiday Allowance Fund of this, and the deadline has therefore been extended on an exceptional basis.
There could be quite serious consequences if, as an employer, you do not actively state that you wish to retain the frozen holiday pay within the company. In that case, you will have to pay the full amount. We do not wish to put companies in an unforeseen situation which, in the worst-case scenario, could lead to bankruptcy. We therefore urge companies to take an active stance on whether they wish to retain the funds within the company and make this clear, or whether they intend to pay them out immediately.
As a general rule, employers who do not receive a payment notice by 1 September and who still owe frozen holiday pay must actively confirm whether they still wish to retain the holiday pay within the company.
If, as an employer, you do not indicate that you intend to retain the funds within the company, you will receive a single invoice for all frozen holiday allowance that has not yet been paid, as well as any other amounts owed to the Employees' Holiday Allowance Fund. If this is not paid, the claim is transferred to the Employees’ Guarantee Fund, which takes over the recovery of the debt. This means that the company risks being declared bankrupt.
As an employer, you must also state that you intend to retain the funds within the company if you have not paid the annual charge in full or by the payment deadline. However, if you have already received a demand for payment for all frozen holiday pay due to late payment, there is no need to confirm this.
The Holiday Allowance Fund has previously informed employers of the deadline by letter via e-boks, and has now sent the final reminders, setting the final deadline, to those employers who have not yet indicated that they wish to continue holding onto the frozen holiday pay.
As an employer, you must register your decision to retain holiday pay under the ‘Retain holiday pay’ tab in the self-service section on virk.dk.
Employers can always voluntarily pay in, via the self-service portal, any frozen holiday pay that they do not pay via the annual collection. You can pay for all employees or for individual employees, for example, just those who are leaving the company. If you make a voluntary payment for all employees, you are exempt from the annual declaration.
ATP is responsible for administering the employees' holiday allowance fund, whilst overall responsibility lies with LD Pensions.
At ATP, Deputy Director Jan Sabroe says: “We are happy to provide guidance to employers. The rules are new, and this is the first time that this declaration regarding the holiday allowance funds held by companies needs to be made. I would encourage you to use the self-service portal on virk.dk, or to contact our customer service team if you need help.”
Indexation must be paid on the frozen holiday allowance that you retain with your employer. The indexation corresponds to interest, which is added to the amount you owe to the Holiday Allowance Fund. If you choose to make voluntary contributions, you will avoid having to pay indexation in future. You can make voluntary contributions via the self-service portal on virk.dk.
You can also contact Customer Services on 70 11 41 00 for further information.
