Holidays and Holiday Pay
What does the law say about holidays and holiday pay?
The Annual Leave Act regulates the employee’s right to holiday benefits, which consist of holiday leave, holiday pay, and holiday compensation. The Holiday Act also regulates the length of a holiday year and the year of accrual. According to the Act, the holiday year runs from April 1 of one year to March 31 of the following year. The corresponding period immediately before a holiday year is called the vesting period. Holiday pay is paid when the employee’s employment is terminated, and they have unused holiday days left.
According to the percentage rule, the holiday pay constitutes of 12 percent of the employee’s due salary in an employment relationship during the earning year. Absence from work due to, for example, illness or occupational injury is also eligible for holiday pay. It is only when the employee has been wholly or partially absent from work during a full year of vesting. Collective agreements may have different conditions than the Annual Leave Act.
When can you take your holiday?
According to the Holiday Act, employees are entitled to four weeks of continuous holiday between June and August. There may be exceptions in collective agreements or individual employment contracts. The basic rule is that the employer decides when you can take your holiday. At least two months before the start of your holiday, you must have received notification from your employer about your holiday.
How does holiday pay work in case of termination of employment?
If you are dismissed from your job and have not taken all your holiday, you are entitled to holiday pay for the holiday you have not taken. Employees are usually entitled to holiday pay and holiday compensation regardless of why they have been terminated. We at Advantage Law Firm help you with your rights.
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