Resignations

Here you can read about Employee resignation rules

1. Holiday pay upon resignation
2. What are G-days (compensation days)
3. How should you, as an employer, handle vacation pay, when an employee leaves a job?

 

1. Holiday pay upon resignation

•     The employer must settle holiday pay, which corresponds to 12.5% of the employee's vacation-entitled salary
•         The holiday pay replaces the paid vacation that the employee has not yet taken before resigning
•         The employer must deposit the holiday pay into FerieKonto (a Danish holiday account) no later than the last day of the employee's employment
•         The holiday pay cannot replace transferred vacation from a previous year
•         If there is unused vacation time, it must be paid directly to the employee upon resignation
•         If the employee has not received vacation allowance, the employer must settle vacation allowance for the vacation days that the employee has taken since the last time he received vacation allowance
•         If the employee has extra vacation days, it must be stated in the employment contract or the company's personnel manual whether the days will expire or the employee has the right to have them paid out.

 

2. What are G-days (compensation days)

G-days is a term used to describe the first two days of unemployment after an employee leaves a job, during which they are entitled to employer compensation. When an employee is terminated or furloughed and is unemployed for the first two days after leaving the job, the company must pay G-days to the employee. In order for the employee to be entitled to G-days, they must be a member of an unemployment insurance fund and have worked for at least 74 hours within the last 4 weeks before leaving the job.

The employer must settle the G-days no later than in connection with the second payroll, after the employee has left the job. There are rates for both half and whole G-days. A full day is defined as more than four hours of work per day, and if the employee has worked less than four hours per day the rate is a half G-day.

Rates for G-days can be found here

 

3. How should you, as an employer, handle vacation pay, when an employee leaves a job?

When an employee leaves a job, it is your responsibility to settle the vacation pay.

With FerieKonto or another vacation fund:

You must settle vacation pay to FerieKonto or another vacation fund in the same month as the salaried employee leaves the job. For hourly employees, you settle continuously and the deadline for settling is about two weeks after the end of the payroll period.

With a vacation scheme in the company:

If your company has an approved vacation scheme or a collective agreement, you must settle vacation pay in the same month as a salaried employee leaves the job. For hourly employees, vacation pay is settled with each payroll.

Using a payroll system:

With a payroll system like Zenegy, vacation pay can be paid directly to the employee if he or she moves abroad or retires. All other net vacation pay must be settled to FerieKonto or another vacation fund.

When an hourly employee leaves the job, there will be no difference from a regular payroll. The employee receives 12.5% in vacation compensation. Vacation pay can be reported and settled via a payroll system, such as Zenegy, every time a payroll is made, to make the process easier.

It is important to remember to enter the date of resignation before the last payroll is approved. Otherwise, vacation will not be settled or calculated, and the employee will not have resigned correctly in the system.