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Holiday compensation corresponds to the annual holiday pay which the employee would have received if he or she had used the holiday. In other words, holiday compensation is not paid if all holidays have been taken by the time the employment ends. The employer and employee are free to agree that accrued holidays must be taken during the notice period.
Holiday compensation is also paid in a situation where the employee does not accumulate annual leave due to, for example, low working hours. In this case, the holiday compensation is calculated on a percentage basis from the salary of the year in which the holiday is determined, and the employee is entitled to the corresponding leave.
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