Holiday compensation is calculated in a similar way to holiday pay. The calculation method can be found in the relevant collective agreement.
Holiday compensation during an employment
If employees are not entitled to annual holiday, they are entitled to holiday compensation instead of holiday pay. This compensation is paid no later than 30 September.
Employees are also entitled to holiday compensation when they exercise their right to take leave corresponding to holiday pursuant to the Annual Holidays Act. In that case, holiday compensation is to be paid in connection with the leave according to the same principles as holiday pay.
Holiday compensation at the end of an employment
If an employment relationship ends and earned holiday has not yet been received, employees have to be paid holiday compensation corresponding to holiday pay.
When paying holiday pay or holiday compensation employers have to give employees a pay slip detailing the amount of holiday pay or holiday compensation and the basis on which it was determined.