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Annual leave

Annual leave

Under the Annual Leave Act, all employees are entitled to 25 days of annual leave/holiday in a year. Anyone who starts work after 31 August is entitled to five days of unpaid annual leave during the current annual leave year.

Calculate number of paid annual leave days

To calculate the number of paid annual leave days, start by determining how many days a person has been employed during the qualifying year. Under the Annual Leave Act, the qualifying year is from 1 April to 31 March the year before the holiday year. Collective agreements can regulate coinciding earnings year and holiday year. Agreements can also be made regarding advance holidays.

Employment days are calendar days, including Saturdays, Sundays and public holidays. Deduct any days of absence that are not credited for the purposes of holiday pay.

Then divide the number of employment days by 365 (366 during a leap year). Multiply by the total number of annual leave days to which the employee is entitled. Always round the number of days up to whole days.

Scheduling of annual leave

Unless otherwise agreed, the employee must have at least four consecutive weeks of annual leave during the period June–August. As an employer, you must always consult with the employee on the scheduling of their annual leave. If you are unable to agree, it is your decision as the employer as to when the employee may take their annual leave.

You can agree on other terms and conditions in the personal employment contract or through the collective agreement.

The scheduling of the main holiday is a primary negotiation issue according to the co-determination act.

When taking annual leave days

Under the Annual Leave Act, all annual leave is counted in whole days. This means that it is not possible to take half an annual leave day or the like.

For employees who do not normally work on Saturdays and Sundays, the weekend, public holidays, Easter Eve, Whitsun, Midsummer Eve, Christmas Eve and New Year's Eve do not count as annual leave days. Only days that would have otherwise been working days count in these cases.

Carry over annual leave

An employee who is entitled to more than 20 days of paid annual leave during the annual leave year is entitled to carry over the excess paid annual leave days to a later annual leave year. In most cases, saved annual leave days must be taken within five years.

Unpaid annual leave days cannot be carried over.

Change of employer during the year

An employee who changes employer during the year is not normally entitled to payed annual leave from the new employer, unless an agreement (collective agreement or individual agreement) regulates coinciding earnings years and vacation years. However, the previous employer must pay holiday allowance for the days of annual leave that the person did not take.

If employment commences after 31 August, the employee is entitled to only five days of unpaid annual leave in the new job for the current annual leave year.

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