Coronavirus: New Act will allow for companies to postpone holiday

Pursuant to the new draft bill introduced by the Danish government, companies can postpone holiday to the following holiday year with or without prior agreement. The draft bill thereby aims to increase flexibility for companies which are currently experiencing critical demand for manpower. Companies must, however, be aware that the right to postpone holiday presumes a material and unforeseeable operational need.

According to the new draft bill, companies will have the right to postpone holiday based on individual agreements or its own decision, whereafter holiday for the current holiday year as well as the shortened holiday year from 1 May to 31 August 2020 may be postponed to be taken in the following holiday year.

Before companies begin to prepare postponing its employees’ holiday, it’s important to be aware that the draft bill in its present form conditions the right to postpone holiday on the existence of force majeure situations, illustratively where the company is substantially affected by several cases of sickness or quarantine among its employees. Consequently, the right to postpone holiday requires the existence of unpredictable circumstances beyond the control of the company. At the same time, it must be necessary that it’s the employee whose holiday is postponed who performs the work. It will, therefore, be necessary to make individual assessment in each case, both with respect to the company as well as the employee. 

The draft bill is currently being processed and is expected to be passed tomorrow.

We are following the legislative process closely and will revert as soon as there are new developments.

[L161 “Act on the postponement of holiday in connection with covid-19” passed on 2 April 2020]