The transition year is from 1 September 2019 to 31 August 2020. The fund has been established to ensure that you do not have to pay double holiday allowance to your employees in one year. Instead the holiday allowance will be turned into savings with Lønmodtagernes Feriemidler. The employees will receive the savings when they reach state pension age or leave the Danish labour market.
Lønmodtagernes Feriemidler is a new fund which manages the holiday allowance earned by employees during the transition year until the new Holiday Act becomes effective.