Payroll alert special: Vacations in 2023

Who is entitled to vacation?

All employees working for an employer on a permanent basis (also part-time employees) are entitled to vacation. Employees working under an agreement on work performed outside the employment, are not entitled to vacation.

The basic vacation entitlement is 4 weeks.  Employees over 33 years of age and employees permanently caring for a child, are entitled to 5 weeks.

When an employee reaches 33 years of age, their increased vacation entitlement is granted in full, irrespective of the month when the age is reached. However, this does not apply in case of an employee permanently caring for a child. For such an employee, the increased leave entitlement is reduced in proportion to the date starting/ending the permanent childcare (the employee notifies the employer in writing of starting/ending the permanent childcare).

In order to calculate the entitlement of employees with unevenly distributed working hours, it is necessary to understand the average number of working days for one week in the current year. This average number is further multiplied by the number of weeks of vacation entitlement.

Example: An employee works an average of 4 days a week and their daily work fund is 10 hours.

Calculation of entitlement for an employee below 33 years without a permanent childcare: 4 days (average number of working days per week) x 4 weeks (annual entitlement) = 16 days.

Calculation of entitlement for an employee over 33 years or with permanent childcare: 4 days (average number of working days per week) x 5 weeks (annual vacation) = 20 days.

Taking one day of vacation for an employee with such a work calendar is 10 hours.

What is the difference between annual vacation and vacation for days worked?

If the employment does not continuously last throughout the calendar year (however, the employee works more than 60 days in a calendar year), the employee is entitled to a proportional part of the leave. For each full calendar month of employment, it is one-twelfth of the annual vacation entitlement.

Example: A 40-year-old employee starts employment on 1.2. and his/her employment relationship ends on 31.8. (he/she worked full 7 months). The employee will be entitled to vacation in the proportion of 25/12*7 = 14.5 days.

If an employee did not work min. 60 days for the employer in a given year, the entitlement is one-twelfth of the annual vacation entitlement for every 21 days worked.

Example: A 26-year-old employee can take 1.5 vacation days after the first month of employment after having worked 21 working days (with the annual entitlement being 4 weeks). The calculation is 20/12 = 1.66 days. After working 60 days, the employee is entitled to annual vacation.

When can vacation be reduced?

If an employee worked over 60 days in a calendar year and becomes absent from work for over 100 workdays (due to sick leave, parental leave or public office function), the vacation entitlement is reduced. For 100 missed working days, it is cut by one-twelfth. For each additional 21 missed days, additional one-twelfth is cut subsequently.

Can vacation be ordered?

The vacation dates are determined exclusively by the employer according to the vacation plan approved by employee representatives. In case of no representatives in the company, the vacation plan is determined by the employer. The plan should be drafted so that the employees can take the leave in its entirety and until the end of the calendar year in which the entitlement arose. The plan is drafted with respect to the smooth running of operation as well as the legitimate interests and needs of the employees.

In case the vacation is granted in several parts, at least one part must last minimum two weeks, unless otherwise agreed between the employee and the employer. If the vacation is ordered, the employer informs the employee at least 14 days before the start of the leave.

The employer may also determine the collective use of leave, the so-called company-wide vacation in the duration of maximum two weeks. In case of serious operational reasons, it can be up to 3 weeks, but these facts must be notified 6 months in advance.

If the employer does not determine the use of vacation by June 30 of the following year so that the employee takes the leave by the end of the year, the employee may determine the use of the leave himself/herself. In this case, the employee is obliged to inform the employer at least 30 days before the start of taking the leave.

Will the vacation be forfeited if not taken by end of the year?

Employees unable to take vacation due to parental/maternity leave, temporarily unable to work or performing public office - may take their vacation at the end of their absences.

If the employee did not take the vacation by the end of the calendar year because the employer failed to schedule its use or due to employee obstacles, the vacation can be taken by the end of the following calendar year.

When can an employer cancel employees’ vacation?

The employer may call an employee off the vacation. If the employee’s vacation was already approved, the cancellation costs / fees are borne by the employer. The same applies for the travel costs associated with the early return from holidays.

What is additional leave?

It is provided to employees who work in difficult conditions. These are mainly employees working in underground mines, tunnelling, and adits throughout the calendar year. Employees working in a health-damaging environment are eligible too. Additional vacation is one week.

This leave cannot be carried over and must be taken with priority. Unused additional leave cannot be compensated for wages.

How is vacation reimbursed?

The employee is entitled to wage compensation in the value of the average hourly earnings for the vacation taken. Average hourly earnings are calculated from earnings from the previous quarter.