Apr 8, 2025
Holidays and Holiday Pay – Rules under the Norwegian Holiday Act regarding Rights, Accumulation, and Utilization
The right to vacation is a fundamental right for employees in Norway. The Holiday Act regulates both the right to holiday time off (chapter II) and the right to holiday pay (chapter III). The law is in principle non-derogable to the benefit of the employee, but allows the parties to agree on arrangements that deviate from the law's provisions in several areas. This article provides an overview of the central rules regarding holiday time off and holiday pay, including accrual, calculation, determination, and taking of holidays.
Scope of the Holiday Act
Definition of employee
The Holiday Act covers anyone who performs work in someone else's service, cf. § 2(1). The concept of an employee in the Holiday Act should primarily be understood in the same way as in the Working Environment Act. However, certain groups are exempt from the scope of the Holiday Act:
Employees on ships (regulated by their own regulations)
Employees on Svalbard (unless special regulations are provided)
Groups that are secured at least equally advantageous arrangements through regulations or collective agreements
Relation to EU law
The Working Time Directive (Council Directive 2003/88/EC) requires at least four weeks of annual paid vacation for employees. The Holiday Act implements the Directive’s provisions on holidays, and in interpreting the law, it is relevant to consider the Directive and the practices of the EU Court of Justice and the EFTA Court.
Holiday Time Off
General holiday time off
The main rule is that an employee is entitled to 25 working days of vacation each vacation year, cf. § 5 no. 1. The vacation year follows the calendar year. "Working days" means all days that are not Sundays or legally mandated weekends or public holidays. Thus, a vacation week equals six working days.
The employer is obligated to ensure that the employee takes the vacation, and the employee is, in principle, obligated to take the vacation. The employee's claim to holiday time off applies regardless of whether they have accrued holiday pay.
Special holiday arrangements
The fifth vacation week: Many employees are entitled to an extra vacation week (a total of 30 working days) based on collective agreements. To compensate for the loss of income resulting from the fifth week, several collective agreements have agreed on a higher percentage rate for holiday pay.
Additional vacation for employees over 60 years: Employees who turn 60 during the vacation year are entitled to an extra vacation of six working days, cf. § 5 no. 2. Unless otherwise agreed, employees over 60 years are free to determine the timing of their additional vacation.
Limited holiday time off for those joining late in the vacation year: For employees who start after September 30th in the vacation year, the holiday time off is limited to six working days.
Additional time off
Employees working on Sundays may demand to have time off either the Sunday before the holiday or the Sunday after the holiday, provided the employee takes at least six working days of vacation.
Employees may also demand at least 16 hours of time off from the end of work until work begins after the holiday. This only applies if a holiday period covers at least 18 working days (three weeks).
Determination and taking of holidays
Discussion obligation and notification
The employer must, well in advance of the holiday, discuss the timing of the holiday taking with the individual employee or their representative. If no agreement is reached, the employer may unilaterally set the holiday timing within the framework of the law.
The employee may demand to be informed of the holiday setting as early as possible and at least two months before the holiday begins, unless special reasons justify a shorter notification period.
Timeframes for holiday taking
Main holiday: Employees may demand to take the main holiday (18 working days) continuously in the main holiday period from June 1st to September 30th.
Remaining holiday: Employees may demand that the remaining holiday (normally 7 working days) be taken continuously during the vacation year, but the employer may schedule the remaining holiday any time within the vacation year.
Advance and transfer of holidays: A written agreement can be made regarding taking up to 12 working days of advance holiday or transferring up to 12 working days of holiday to the following vacation year.
Employee's right to oppose holiday taking
An employee may oppose holiday time off to the extent that holiday pay does not cover the loss of income during holiday absence. However, this does not apply if the business completely or partially halts operations in connection with holiday taking – then the employer may require all affected employees to take a holiday.
Change of set holiday time off
Once the employee has received notification of holiday taking, the employer can only change the timing if necessary due to unforeseen events, and the set holiday would lead to significant operational problems where a replacement cannot be found.
The employer must discuss the change with the employee in advance. An employee whose holiday is changed may claim compensation for financial losses incurred due to the change, such as cancellation fees or loss of the value of flight tickets.
Holiday taking in special situations
Notice period
If the notice period is shorter than three months, the employer cannot schedule holidays during the notice period without the employee's consent. Employees can also oppose taking already set holidays during the notice period if the notice period is shorter than three months.
Upon termination by the employee, the ordinary rules on setting and taking holidays apply. Employees may demand that the holiday is scheduled before the end of the notice period if it is not possible to take the holiday within the main holiday period or the vacation year after this date.
During illness
An employee who becomes completely unable to work before the holiday may demand that the holiday be postponed until later in the holiday year. Similarly, an employee who becomes unable to work during the holiday may demand that a corresponding number of working days be postponed.
Claims for postponement must be documented with a medical certificate and made no later than the last working day before the holiday (in case of illness before the holiday) or without undue delay after work is resumed (in case of illness during the holiday).
During leave
Holidays cannot be scheduled during leave for parental leave or mandatory service without the employee's consent. If the leave period coincides with already scheduled holiday days, employees may demand the postponement of the holiday days covered by the leave.
During industrial action
During legitimate industrial action, holidays can be scheduled and demanded to be taken according to the usual rules. The employer cannot change the timing of the scheduled holiday due to industrial action.
Holiday Pay
Calculation of holiday pay
Holiday pay is calculated based on the remuneration received by the employee in the earning year (which is the previous calendar year).
The holiday pay basis generally includes all forms of monetary remuneration earned through work, including hourly wages, fixed salaries, allowances, overtime pay, commission wages, and bonuses. However, the following benefits are not included in the holiday pay basis:
Payments to cover expenses for car maintenance, food, lodging, travel allowances, etc.
Holiday pay paid out during the earning year
Share of net profit
Fixed allowances earned and paid regardless of holiday
Benefits in kind (except free food)
Size of holiday pay:
The general percentage rate is 10.2 percent of the holiday pay basis
For employees over 60 years with entitlement to extra vacation, the rate is 12.5 percent (the increased rate applies only to income up to 6G)
Special rules apply to the accrual of holiday pay during illness, parental leave, and military/civil service.
Payment of holiday pay
The general rule is that holiday pay is paid on the last regular payday before the holiday. If the holiday is divided, the holiday pay should be distributed accordingly and paid in connection with each holiday period.
Upon termination of employment, all accrued holiday pay shall be paid on the last regular payday before leaving. Payment may be postponed for the portion of holiday pay that cannot be calculated at this time.
Joint liability in case of business transfer
In the event of a business transfer, the new owner assumes the obligations of the previous owner to provide holiday time off and holiday pay. However, the previous owner remains liable for holiday pay earned while in their employment, allowing the employee to choose who to direct the claim against.
Compensation for breach of the Holiday Act
If the employer intentionally or negligently fails to ensure the employee is given holiday or holiday time off in accordance with the law, the employee may claim compensation for financial loss and a reasonable amount for non-economic loss.
Liability may be reduced if, due to the extent of the damage or other circumstances, it is reasonable for the employee to bear some or all of the loss themselves, for example, if the employee contributed to misunderstandings regarding the holiday taking.
