Holiday allowance account

Trade unions may agree with employers to have the holiday allowance (minus tax and other charges) deposited regularly into a special holiday allowance account in the name of the worker at a bank. Under such an agreement, it must be ensured that the party undertaking to safeguard the holiday allowance will pay the accrued holiday allowance to the worker in question, i.e. the principal along with interest, at the beginning of his holiday. The worker may withdraw his/her balance for the past vacation year after 15 May every year.

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