Vacation Planning – What Should Happen to the 5th Week of Vacation?
Vacation Planning – What Should Happen to the 5th Week of Vacation?
With the end of the holiday period for the 2023/2024 vacation year, it is important to pay attention to any remaining vacation days, especially the 5th week of vacation.
According to the Holiday Act, employees are entitled to five weeks of vacation annually, but if the 5th week of vacation is not taken or transferred to the next vacation year 2024/2025, it must be paid out to the employee.
It should therefore be ensured that either the 5th week of vacation is taken before the end of 2024, or a written agreement is made to transfer the vacation to the next vacation year.
Failure to act may result in unnecessary costs for the company, as the 5th week of vacation would then need to be paid out as salary instead of being taken as time off.
Transferring the 5th week of vacation requires a written agreement between the employer and the employee, which must be in place by December 31, 2024. Any potential payout to the employee for the 5th week of vacation must be made no later than the March 2025 payroll.
If, by the end of the 2023/2024 vacation year, the employee has more than 5 days of remaining vacation, they risk losing those days.
Please note that collective agreements may contain specific rules regarding the transfer of vacation.
According to the Holiday Act, employees are entitled to five weeks of vacation annually, but if the 5th week of vacation is not taken or transferred to the next vacation year 2024/2025, it must be paid out to the employee.
It should therefore be ensured that either the 5th week of vacation is taken before the end of 2024, or a written agreement is made to transfer the vacation to the next vacation year.
Failure to act may result in unnecessary costs for the company, as the 5th week of vacation would then need to be paid out as salary instead of being taken as time off.
Transferring the 5th week of vacation requires a written agreement between the employer and the employee, which must be in place by December 31, 2024. Any potential payout to the employee for the 5th week of vacation must be made no later than the March 2025 payroll.
If, by the end of the 2023/2024 vacation year, the employee has more than 5 days of remaining vacation, they risk losing those days.
Please note that collective agreements may contain specific rules regarding the transfer of vacation.