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Act on earmarked parental leave passed

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Legal news
calendar 24 April 2022
globus Denmark

The Danish government has adopted the new Act on earmarked parental leave. The purpose is to increase equality and flexibility between female and male employees at home and the workplace. This is obtained by having differences such as pay gaps and career opportunities evened out by a better allocation of leave. The Act enters into force 1 July 2022. Under the Act, LGBT+ families and solo parents are also taken into account from 1 January 2024.

With the new Act a 24-24 model is introduced. Each parent will be entitled to parental benefits after the birth of the child. Two weeks are earmarked for each parent and must be held in connection with the birth. This is also the case under the existing rules.

For employees, an additional nine out of the 24 weeks of leave will also be earmarked, meaning that the weeks are non-transferable between the parents. The remaining 13 weeks can, however, be transferred to the other parent.

The model will look as illustrated below:

With the new Act a 24-24 model is introduced. Each parent will be entitled to parental benefits after the birth of the child. Two weeks are earmarked for each parent and must be held in connection with the birth. This is also the case under the existing rules.

For employees, an additional nine out of the 24 weeks of leave will also be earmarked, meaning that the weeks are non-transferable between the parents. The remaining 13 weeks can, however, be transferred to the other parent.

The model will look as illustrated below:

We have previously written about the rules, here.

What will it mean for my company?

Many companies have parental leave policies in place which provides for better conditions for leave in connection with childbirth than the statutory rules.

However, because the existing rules entitle mothers to more leave than fathers, there is a difference between how much paid leave companies offer mothers and fathers. It is not only lawful under the current rules, but also necessary to avoid discrimination. Right now, the rules are as illustrated below:

We have previously written about the rules, here.

What will it mean for my company?

Many companies have parental leave policies in place which provides for better conditions for leave in connection with childbirth than the statutory rules.

However, because the existing rules entitle mothers to more leave than fathers, there is a difference between how much paid leave companies offer mothers and fathers. It is not only lawful under the current rules, but also necessary to avoid discrimination. Right now, the rules are as illustrated below:

IUNO’s opinion

For most companies, the same rights to leave with pay in connection with childbirth will not be lawful anymore. The reason is that current leave policies most likely will offer mothers more leave in connection with childbirth than fathers. It is therefore necessary to know the new rules to choose how to implement new policies without risk of discrimination.

IUNO recommends that companies become familiar with the new rules and stay updated on the different questions that are asked in connection with the implementation process. The reason is that the rules not only concern earmarked leave, but also take different family patterns and more into account.

[Act on amending of the Act on parental leave of 3 March 2022]

IUNO’s opinion

For most companies, the same rights to leave with pay in connection with childbirth will not be lawful anymore. The reason is that current leave policies most likely will offer mothers more leave in connection with childbirth than fathers. It is therefore necessary to know the new rules to choose how to implement new policies without risk of discrimination.

IUNO recommends that companies become familiar with the new rules and stay updated on the different questions that are asked in connection with the implementation process. The reason is that the rules not only concern earmarked leave, but also take different family patterns and more into account.

[Act on amending of the Act on parental leave of 3 March 2022]

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Anders

Etgen Reitz

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Søren

Hessellund Klausen

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Kirsten

Astrup

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Groth Henriksen

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