If an employee has any holiday entitlement earned but not yet received at the end of an employment relationship, the employee is entitled to holiday compensation in connection with final wages. Additional holiday pay not yet received is also usually paid as holiday compensation.

When the employment ends, any holiday entitlement not yet received is paid as holiday compensation. Holiday compensation corresponds to the annual holiday pay that the employee would have received if they had had their holiday.

This means that no holiday compensation will be paid if the employee has no accrued holiday left at the time of their employment ending.

The employer and employee may agree that any annual holiday accrued before the end of the employment is transferred to the next employment and not paid as holiday compensation. This agreement must be made in writing.

Holiday compensation for holiday postponed due to sick leave

The employee’s sick leave may be prolonged so that they are unable to have their holiday in the same or even the following year. If the employee has not received their annual holiday by the end of the calendar year following the holiday credit year, any accrued holiday will be paid as holiday compensation even if the employment continues.

The employee and employer may also agree on the employee being given their holiday simultaneously with their sick leave.

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