The Concept of Salary under Section 16 of the Danish Equal Treatment Act Does Not Include Holiday Allowance
In a judgment delivered on 12 May 2026, the Eastern High Court ruled that holiday allowance is not to be included when calculating compensation under section 16 of the Danish Equal Treatment Act. The Court held that the concept of salary in the provision should be understood as the employee's monthly salary, excluding any holiday allowance. As a result, the compensation was reduced from DKK 350,000 to DKK 315,000.
The Dispute Concerned the Calculation of Compensation under Section 16 of the Danish Equal Treatment Act
The case arose from the dismissal of a sales assistant a few days after he informed his employer that his partner was pregnant. The District Court of Glostrup found that the employer had failed to prove that the dismissal was fully or partly unrelated to the pregnancy. Consequently, the employee was awarded compensation corresponding to approximately nine months' salary.
Before the High Court, the parties agreed that the employee was entitled to compensation under the Equal Treatment Act. The dispute therefore concerned only the amount of compensation, and more specifically whether holiday allowance should form part of the basis for calculating compensation under section 16 of the Equal Treatment Act.
Eastern High Court: Holiday Allowance Is Not Included in the Concept of Salary
The Eastern High Court found no basis for overturning the assessment that the compensation should be fixed at an amount corresponding to approximately nine months' salary.
The Court observed that neither the wording of section 16 of the Equal Treatment Act nor the preparatory works addressed whether holiday allowance should be included in the calculation basis. Nor was there any established administrative practice on the issue. Referring to previous case law, the Court therefore concluded that the concept of salary should most naturally be understood as the employee's monthly salary excluding holiday allowance. On that basis, the compensation was reduced from DKK 350,000 to DKK 315,000.
Littler's Comment
Littler regularly advises clients on matters concerning equal treatment and compensation. The judgment provides an important clarification of the basis for calculating compensation under section 16 of the Danish Equal Treatment Act. While the amount of compensation will continue to depend on a case-by-case assessment, taking into account factors such as the employee's length of service and the circumstances of the case, the Eastern High Court has now established that the concept of salary in section 16 is to be understood as the employee's monthly salary excluding holiday allowance.
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Disclaimer: The above does not constitute and cannot replace legal advice.
Reference to the judgment of the Eastern High Court (Case No. BS-48325/2024-ORL):
Stephan Gheysen
Attorney & Partner
+45 27 21 05 06
