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23. August 2024

The holiday act explained: Managing remaining holiday leave in the workplace

 

Remaining holiday leave is not just time off work; it’s also an excellent opportunity to recharge. Using your remaining leave can boost your mental well-being and increase your energy and engagement when you return to work. However, for many employees, planning their remaining leave with their employers can be challenging.

In this guide, we’ll explore the holiday regulations in place, how to communicate with your employer about planning, and how to maximise the benefits of your remaining leave.

 

 

The holiday act and its many rules – What’s new and what remains the same?

 

Although a new holiday act has been introduced, many of the previous rules still apply. Below is an overview of the new elements in the act and what has stayed the same.

rules that remain unchanged in the holiday act

 

Entitlement to five weeks of holiday leave

  • The amount of holiday leave remains the same under the new act. Employees still accrue 2.08 holiday days per month, equivalent to 25 days (five weeks) per year.

 

Entitlement to three consecutive weeks of holiday between May 1st and September 30th (main holiday)

  • As before, employees are entitled to three consecutive weeks of holiday, known as the main holiday, during the summer period.

 

Unchanged notice periods

  • Notice periods remain unchanged. Employers must provide at least three months' notice for the main holiday and at least one month's notice for other holidays.

 

Unchanged holiday allowance

  • The holiday allowance of 1% remains the same under the new act, although it can still be higher under local agreements. It’s worth noting, however, that under the new act, employers now have two ways to pay out the holiday allowance. It can either be paid alongside the holiday leave itself or in two instalments, in May and August.

 

 

What are the new rules in the holiday act?

 

Holiday accrual method

  • The way holiday leave is accrued has changed significantly. Instead of accruing holiday leave in arrears, employees now accrue leave on an ongoing basis. This means they can take paid holiday as early as the month after it is earned. Additionally, the accrual period (holiday year) has shifted. It no longer follows the calendar year but has been offset by four months, preventing employees from starting each year at zero. The holiday year now runs from September 1st to August 31th.

 

Holiday usage period

  • The period during which accrued holiday can be taken has also changed. Previously, holidays had to be taken within 12 months, from May 1st to April 30th. Now, the period runs from 1st of September to 31th of December of the following year, giving employees a total of 16 months to take their accrued holiday.

 

Transfer and payout of holiday
The new act also introduces options for transferring or paying out holiday leave beyond the four-week minimum entitlement. There are three possibilities:

    1. Once the accrual period (holiday year) ends, the employee and employer can agree to pay out any accrued holiday beyond the four-week minimum before the end of the usage period.
    2. The employee and employer can agree to transfer accrued holiday beyond the four-week minimum to the next usage period.
    3. At the end of the usage period, any remaining accrued holiday beyond the four-week minimum is paid out to the employee.

 

For a more detailed explanation of the holiday act, click here.

 

 

Communication is key

 

Clear communication is essential when planning remaining holiday leave with your workplace. Start the conversation with your manager as early as possible. It’s also important to quickly evaluate your holiday needs and determine suitable timeframes for taking your leave. To ease the planning and discussion process, it’s helpful if these timeframes are flexible.

 

Additionally, employees should familiarise themselves with their workplace's policies and guidelines for requesting and planning holidays.

 

 

Maximise the benefits of your remaining holiday leave

 

When taking leave, it’s essential to spend your time on activities you enjoy to recharge effectively. To make the most of your remaining holiday leave, focus on creating meaningful moments. Here are some tips to help you plan your remaining holiday:

  • Plan your holiday carefully
  • Vary your activities
  • Prioritise yourself and focus on your mental well-being
  • Spend time with loved ones
  • Use the time to reflect on your personal and professional goals

 

 

Read our step-by-step guide to work-life balance for more tips.

 

 

With Timegrip, we can help you gain clarity on holiday leave and regulations. Contact us today to discuss how we can assist you.

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