Holiday pay - key rights and rules

Holiday pay - key rules and rights

We most often come across holiday and feriepenger during the holiday season, usually in summer. At this time, either the employer announces fellesferie, or we apply for time off ourselves. But do you really know when you can do that? How much holiday can you get? What money are you entitled to, and is it taxed? Read on to find out.

How much holiday are you entitled to?

In Norway, you are normally entitled to 25 working days of holiday. Working days are counted from Monday to Saturday, while Sundays and public holidays are not included. This usually means four weeks and one day of holiday in each calendar year. If you have turned 60, you are entitled to an extra week of holiday, giving a total of 31 days.

Even if you would not normally work on a given working day according to your work schedule, it is still deducted from your holiday entitlement. For example: if you take two weeks of holiday in July, you will use 12 holiday days.

Additional rule: remember that you have the right to refuse holiday at a time chosen by the employer if feriepenger is less than your normal salary. In this situation, the holiday days should be carried over to the next year or cancelled.

The situation is different if you are employed during the year.

Here, people employed after 30 September are entitled to a maximum of 6 days of holiday in that year, while people employed before 30 September are entitled to the full holiday allowance. In addition, if you are employed during the year, your holiday entitlement is reduced by any holiday already used with a previous employer or while unemployed, if you used it.

When can I go on holiday?

The period when you will be on holiday should be agreed with the employer. However, if you cannot reach an agreement, the employer has the final say and can set the holiday according to the statutory rules.

Except in exceptional situations, you can ask the employer to inform you of the holiday dates at least two months before it starts. This means that if the employer sets our holiday for the beginning of June at the start of May, we have the right to refuse and ask for the holiday to be set no earlier than the beginning of July.

As an employee, you have the right to request that 18 working days of holiday fall between June and the end of September. This does not apply to employees who started work after 15 August. We can also request that the remaining 7 working days of holiday are taken consecutively. So if we want to have 18 working days of holiday in the summer, we can request it, and the employer cannot refuse, except for minor statutory exceptions.

We also have the right to agree with the employer to carry over up to 12 holiday days to the next year or to take up to 12 days of holiday from the following year. Such arrangements should be made in writing.

Can the boss interrupt or change our holiday?

When we have agreed holiday that we are about to take, or are already on, there may be a situation where the employer needs our presence at work. In that case, the boss may change or interrupt our holiday during it in exceptional, unforeseen circumstances.

In such a case, the employee may claim compensation. Before the holiday is changed or interrupted, we should first provide an estimate of the costs related to the change or interruption. In the case of interruption, these will certainly include the cost of the return ticket, lost holiday days and paid-for activities. In the case of changes, for example, cancellation costs for the trip.

If you became ill before your holiday, you have the right to request that the holiday be moved to a later date in the same year. The arrangement for the postponed holiday is made on the same basis as before. The same applies if you become ill during your holiday. You then have the right to move the part of the holiday during which you were ill to a later date and use sykepenger under the standard rules. You must remember to provide the employer with a medical certificate immediately after the holiday in order to use this option.

What money am I entitled to for holiday?

Normally, your employer should ADD at least 10,2% to your salary, and after the age of 60, 12,5%. This money should be paid when you decide to take holiday and should be proportionate to its length. So, for example: if you earned 300.000 kroner gross in the previous year, your employer set aside 30.600 kroner for your holiday. When you decide to take 10 days of holiday, the employer should pay out 40% of the earned feriepenger, that is 12.240 kroner. If you do not take holiday in a given year, feriepenger is carried over to the next year.

There is also another method of paying feriepenger - the part above the normal salary can be paid together with the June salary. For example: suppose our earnings this year are 300.000 kroner, which gives 25.000 kroner gross per month. We took holiday for the whole of September and the employer uses the method mentioned above. Then for September we will receive the standard 25.000 kroner gross, while the remaining 5.600 of accumulated holiday money will be paid together with the June salary.

Is feriepenger taxed?

Yes, feriepenger is taxed. However, normally if feriepenger is paid for the previous year, no advance tax is deducted.

This means that when receiving feriepenger, we get it in the gross amount in which it was accrued, but we will have to settle it in the annual tax return. For this reason, we also pay higher advances in the standard working months so that we do not pay them during the holidays. The exception is kildeskatt 25%. If you are on kildeskatt, we will receive 25% less feriepenger, regardless of when and for which year it is paid.

What happens in the event of dismissal?

Holiday should always be taken in the same year, so even if you changed employer, for example in July, the new employer is obliged to grant you holiday as if you had not changed employer. The employer may deduct holiday days that you used with the previous employer or while you were on holiday during unemployment.

Feriepenger, on the other hand, should be paid in full, taking into account advance tax. Holiday money must be paid together with the final salary; it cannot be held back until the holiday period. Ending employment must involve a full settlement with the former employer. If payment is not made, you should report it to the Ministry of Labour and submit an official claim to the former employer. If you change employer, the new employer will not pay the holiday benefit in that year, even if you are entitled to holiday days. You should use the money paid to you by the former employer together with the final salary for this.

What if the employer does not grant holiday?

The Holiday Act obliges the employer to act in accordance with the holiday rules. If the employer does not want to grant holiday or otherwise breaks the law, you may claim compensation. This covers economic losses and non-financial losses. Lack of holiday means poorer well-being, which is legally compensable.

It is the employer's duty to set holiday in accordance with the law. If they cannot reach an agreement with you, they should still set the holiday on their own. If they do not do this, they are liable. In such a situation, you have the right to compensation, even if you did not ask for holiday yourself.

Other arrangements

Employers may have arrangements that differ from those set out in the law. Trade unions often agree better terms with the employer than those set out in the regulations. The rights described by us are minimum requirements. You cannot have worse conditions when employed on a full-time contract.

Summary

• Every year we are entitled to 25 working days of holiday. Working days are counted from Monday to Saturday.
• The employer adds at least 10,2% feriepenger to your salary (12,5% after the age of 60), which should be paid when you take holiday, in proportion to its duration.
• The employee agrees holiday with the employer, but the employer has the final say.
• If you become ill during holiday, submit a medical certificate and ask for the holiday to be postponed.
• Feriepenger is ALWAYS taxed, but it is often not subject to advance income tax.
• On dismissal, the employer must pay out accrued feriepenger minus advance tax.
• If the employer does not comply with the rules, you have the right to compensation and it is easy to obtain through a lawyer.