Summer brings the annual leave season—and with it the recurring questions about how leave is accrued, scheduled, and paid. Below is a clear checklist, for both employers and employees, covering the key annual leave rules.
1. Accrual of Leave – How Much Annual Leave Is Earned?
Annual leave accrues during the leave accrual year (1 April–31 March), and the leave days earned during the previous holiday period are used in the current holiday year.
Annual leave accrues either:
- 2 weekdays per month if the employment has lasted less than one year, or
- 5 weekdays per month if the employment has lasted more than one year.
As a general rule, a full leave accrual month requires either:
- at least 14 working days, or
- at least 35 working hours in a month.
One full holiday week consumes six leave days, as Saturdays are also counted as weekdays under the Annual Holidays Act.
2. Timing of Leave
The employer decides the timing of annual leave, but the employee must be consulted before the decision is made. The leave period must be notified:
- at least one month in advance, or
- on a case-by-case basis, at least two weeks before the leave begins.
Summer leave (24 weekdays) is primarily to be taken between 2 May and 30 September, i.e. during the official holiday season. Winter leave (the remaining days) is given outside this period.
The employer and employee may agree that the portion exceeding 12 weekdays can be taken in one or more periods.
3. Holiday Pay and Holiday Bonus
During annual leave, the employee is paid holiday pay equivalent to their normal salary.
In addition, many sectors provide a holiday bonus (typically 50% of holiday pay) based on collective agreements.
4. Illness During Annual Leave
If an employee falls ill at the start of annual leave, the leave must be postponed upon the employee’s request.
If the employee falls ill during annual leave, they have the right to have the portion exceeding six leave days rescheduled.
The employee must:
- request the postponing/ rescheduling without delay, and
- provide reliable proof of incapacity if requested by the employer.
5. Postponement and Unused Leave
Annual leave should primarily be granted during the holiday season. However, the employer and employee may agree that the portion exceeding 18 days can be taken in the next holiday season or later as carried-over leave (saved leave).
If employment ends, any unused leave must be compensated in cash as holiday compensation.
6. Final Notes
The rules governing annual leave are largely based on mandatory legislation, but collective agreements often have a significant practical impact—especially regarding holiday pay and bonuses.
In unclear situations, it is advisable to:
- check the applicable collective agreement, and
- consult an expert if necessary.
Careful planning ensures that the summer holiday season runs as smoothly as possible for both employers and employees.
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