The new Holiday Act starts on 1 September next year, and we have just started on the transitional scheme. As part of the transition to the new Holiday Act, your holiday pay (earned in the period 1 September 2019 to 31 August 2020) is frozen in a brand-new fund called “Lønmodtagernes Fond for Tilgodehavende Feriemidler”. You get that money paid out when you eventually leave the labour market.
A lot is being written in the media about the consequences this may have for employees, who for a period may need to plan their holiday differently – from what they are used to. But it is important to hold on to the fact that nobody is being “cheated” – for a period, until the new Holiday Act starts, the holiday is simply spread a little differently.
But what does the new Holiday Act actually mean for all the payroll administrators who make sure every month that all employees are paid correctly and on time?
Besides the great many things you as a payroll administrator have had to, and still have to, get to grips with about the new Holiday Act – the legislation itself, of course, the new rules for reporting to eIncome and so on – many have also had to decide on, and carry out themselves, a long list of adjustments in their payroll system.
With a great many payroll systems, you have had to make the corrections yourself, and people see it as perfectly natural to have to go in and “mess about with the setup”. But why, actually?
With modern technology, cloud-based solutions and rapid development, it is only right for users to demand more automation and functionality. We all have our core competencies, and we need to keep them up so we can stay focused on, and develop within, our own field. Changes to the system should be made centrally, so it is adapted to new rules and you as a user only have to think about learning the new functionality.
At Zenegy we put a lot of effort into making payroll as easy as possible, without you having to think about the basic setup of the system. Many of our customers have been pleasantly surprised that they don't have to make adjustments in the system for the transitional scheme, as it has all been made ready for them.
Among other things, we make automatic reports to eIncome, give a clear overview of the employee's earned, used and frozen holiday balances, automatically split the holiday allowance beyond the standard limits, make it easy to correct holiday balances in case of errors, and much more. See the full overview of features here.
That is how it should stay, so that you as a payroll administrator can keep focusing on getting pay right and on time, as simply and efficiently as possible.
