Norway: Proposed Changes to the Holiday Act and How Holiday Pay is Accrued and Paid in Norway

The government is proposing a change from the current earning system of holiday pay, following a statement from ESA that Norway’s rules for holiday pay violate the EU’s Working Time Directive. According to the directive, employees are entitled to four weeks of paid holiday each year.

The government has issued a report on the Holiday Act’s system for accrual of holiday pay for consultation, proposing changes to how holiday pay is earned and paid in Norway.

In Norway, holidays and holiday pay are separate rights. All employees are entitled to holidays from their first year of employment. Holiday pay, on the other hand, is paid, according to the current arrangement, the year after it is earned.

According to the EU’s Labour Directive, employees are entitled to four weeks of paid holiday per year. The EFTA Surveillance Authority has questioned whether the current system is in conflict with the Directive. This is the background for the report.

The government proposes to replace the current system with a new system under which holiday pay is earned and paid in the same year. Three different models have been proposed.