Reminder: The deadline for paying unclaimed holiday pay for the 2023/2024 holiday year is 15 November 2025.
As an employer, it's essential to stay on top of deadlines and procedures for handling unclaimed holiday pay – especially since failing to comply can be costly. This blog post provides a clear overview of what unclaimed holiday pay is, why and to whom it must be paid, and the consequences of non-compliance. You’ll also get a clear explanation of the rules on holiday payment and carry-over, and what you need to be aware of as an employer.
What is unclaimed holiday pay?
If you have employees who haven’t used their full entitlement of five weeks’ holiday, you are required to calculate the number of unused days as of 30 September following the end of the holiday period.
The final deadline for paying unclaimed holiday pay for the period from 1 September 2023 to 31 December 2024 is 15 November 2025.
Who should receive unclaimed holiday pay?
If your employees are covered by a collective agreement, the payment must be made to the holiday fund specified in that agreement.
If your employees are not covered by a collective agreement, the payment must be made to the Labour Market Holiday Fund (Arbejdsmarkedets Feriefond). Both reporting and payment must be submitted via virk.dk between 1 and 15 November 2025.
What if we don’t pay the unclaimed holiday pay?
If you miss the payment deadline of 15 November 2025, interest will be charged at 1.5% for each commenced month.
Holiday pay must not be paid out without leave being taken
Under the Holiday Act, it's generally not permitted to pay out holiday pay unless the leave is actually taken. The exception to this is the fifth holiday week and any additional leave beyond the statutory four weeks.
The fifth holiday week must automatically be paid to the employee no later than with the March payroll following the end of the holiday period – unless an agreement has been made to carry it over by 31 December.
Carrying over holiday
Employees are expected to take five weeks of holiday during the period from 1 September to 31 December of the following year. However, they may request to carry over any leave beyond four weeks to the next holiday period. Such carry-over requires the employer’s approval and must be confirmed in a written agreement with the employee by 31 December at the latest.
Don’t miss the deadline – Risk of fines for non-compliance
Failing to meet the reporting and payment obligations can result in fines. This applies if there is no written agreement regarding holiday carry-over or cash payout, and/or if unclaimed holiday pay is not settled with the appropriate holiday fund.
Random checks will be carried out, and businesses must be able to provide documentation for any holiday carry-overs, cash payouts, and payments made to the relevant fund.
Need advice?
If you need guidance on holiday legislation or other HR/employment-related matters, feel free to get in touch with us.
