Both employers and employees should ensure that they have an overview of any unused vacation days. What happens to unused vacation days at the end of the year? Can they be carried over to the next year? Can they be compensated, or should they be taken during the year?

The Vacation Act

Employers are obliged to ensure that employees are given 25 working days (four weeks and one day) of vacation time each vacation year. Many employees also have additional vacation time due to age, collective agreements, or individual agreements. Employees may request that their main vacation, which comprises 18 working days, be granted during the main vacation period from June 1 to September 30. The rest of the vacation can be taken at other times of the year by agreement with the employer. If the parties cannot agree, the employer decides when the vacation is to be taken, subject to certain restrictions. The employer must notify the employee of the vacation dates no later than two months before the vacation begins.

Transferring vacation days – what is permitted?

The Vacation Act is clear: you have both the right and the obligation to take vacation every year. An employee cannot demand to carry over vacation days to another calendar year. However, if carrying over vacation days is acceptable to both parties, a written agreement can be made to carry over up to 12 working days of vacation to the following vacation year. The limit of twelve working days only applies to statutory vacation days, so the parties may agree that vacation days in excess of 25 working days shall also be carried over. Statutory vacation that is not taken in accordance with the provisions of the Act or due to illness, leave of absence, or similar circumstances will, however, be carried over to the following vacation year regardless.

Can you get paid for unused vacation days?

The main rule is that vacation must be taken as time off and cannot be compensated with money. The exception is upon termination of employment, in which case unused vacation days must be paid out as vacation pay, provided that the employee has taken the vacation days.

We recommend that everyone check how many vacation days they have left and clarify this with their employer now to ensure correct settlement and possible transfer of valuable vacation days.