If, as an employer, you had employees during the transitional year for the new Annual Leave Act, you will have reported the holiday allowance your employees accrued during the transitional year to the Holiday Allowance Fund. The transitional year ran from 1 September 2019 to 31 August 2020.
As an employer, you subsequently had two options regarding your employees’ accrued holiday allowance funds. You could:
- pay employees’ accrued holiday pay into the Employees’ Holiday Allowance Fund, which invests the money
- keep the money within your business as a kind of loan from the Holiday Allowance Fund, subject to an annual indexation of the outstanding balance.
If you have chosen to retain the accrued holiday allowance funds within your company, you may opt to make voluntary contributions to the Employees' Holiday Allowance Fund, subject to a minimum total for one person. As an employer, you will receive an annual invoice relating to those of your employees who, for example, reach state pension age or leave the Danish labour market.
