Transitional allowance

You go back 24 months to a point in time as close to the transition as possible and calculate the transitional allowance based on how much additional work you have been paid for in the period. That is, the hours of additional work for which you have taken time off in lieu in the period are not included in the calculation.

A period of 24 months has been selected because that period is long enough to account for the mix of busy and less busy periods. Other circumstances may, however, stand out, such as maternity/paternity leave or a refinancing wave. In this case, the company and the head of local union must agree to base the calculation on a more fair period.

If you've been employed for less than 24 months, it may be difficult to determine whether the additional work you have carried out provides an accurate picture of the position. In such cases, it is important to involve the head of local union. On the one hand, you may not be entitled to compensation at all because you have not suffered a financial loss in connection with the transition. On the other hand, it is possible that the position notoriously triggers additional work, which has not yet become apparent because the period measured is too short. In such cases, the calculation may be based on the predecessor's work or on an average of additional work in the department within the last 24 months.

A third option is when the employee has been employed long enough, although not two years, to provide a realistic estimate of the future workload. Here, compensation may readily be calculated based on the period of employment, even though it is shorter than two years, because the period still provides an accurate picture.

No, they are not. Students are not covered by the transitional provisions. New employees hired specifically on a fixed salary with independent work organisation are also not covered by the transitional arrangement.

If you are offered a new position in the same company at a salary exceeding the fixed salary threshold, you are generally not entitled to compensation for lost additional work pay or hardship allowance, but if the pay increase is smaller than the compensation would have been, you should contact your union representative.

If you are considered to have independent work organisation, although, to some extent, you perform machine and system-dependent additional work the planning of which you are responsible for, then the answer is yes: you may be employed on a fixed salary basis. In that case, the pay for machine and system-dependent additional work in the past 24 months must be included in the calculation of your transitional allowance.

Because you have managed to keep within the annual norm, and you are expected to continue to be able to do so on a fixed salary. Employees taking time off in lieu have worked fewer hours than colleagues who have received pay for their additional work, and therefore their compensation amounts differ.

As the transitional arrangement is cost neutral, and the annual norm is expected to remain unchanged, calculation of the allowance must take into account whether the employee has taken time off in lieu for the additional work in the preceding 24 months. If you have, you have kept within the annual norm. Therefore, you will not be compensated for the time you have taken off in lieu in the preceding 24 months. The additional work for which you have not taken time off in lieu, or for which you have been paid, must be included in the calculation of the allowance for transition to a fixed salary basis.

The arrangement must be cost neutral. This means applying a net principle when transitioning to a fixed salary. Compensation must be calculated based on the additional work you have had over the past 24 months less the additional work for which you have taken time off in lieu in the same period.

Yes. The transitional arrangement applies to all employees transitioning to a fixed salary.

The collective agreement does not give you the right to change your mind. However, if you receive compensation for transitioning to a fixed salary and it turns out that the job is not compatible with independent work organisation, you are no longer entitled to such compensation. On the other hand, you become entitled to registering your additional work and depositing it in your free-choice bank, following which the hours may be paid out or taken off in lieu. If you disagree with your employer about whether you can be employed on a fixed salary, for example because you do not have the necessary independent work organisation, you should involve Finansforbundet by contacting your union representative, your local union or Finansforbundet's secretariat.

Then you contact Finansforbundet. Finansforbundet and FIDA/A understand that disputes may arise and agree on how these should be handled. Therefore, if you disagree on the calculation, you should not hesitate to take up the matter, so that Finansforbundet can help find a common solution.

Anne, who has a 37-hour working week, goes from overtime work and five weeks of holiday to additional work and six weeks of holiday.

Over the past 24 months, Anne had a total of 310 hours of overtime work.

Of these, 280 hours were spent on weekdays and within the first three hours beyond the agreed work schedule. For those hours, Anne received an allowance of 50 per cent, equivalent to the value of 140 hours. When transitioning to additional work, this allowance is lost, and Anne must therefore be compensated for the value of 140 hours.

The remaining 30 hours were spent on weekends. These hours earned her an allowance of 100 per cent of her pay, equivalent to the value of 30 hours. When transitioning to additional work, Anne must also be compensated for the value of the 30 hours.

Anne is granted one extra week of holiday per year when she transitions to additional work. This corresponds to a value of 74 hours over two years, and those hours are deducted from Anne's compensation.

Anne’s total compensation is therefore based on these hours over two years: 140 + 30 - 74 = 96 hours. That results in annual compensation of 48 hours. The 48 hours correspond to 4 hours per month and represent 2.49 per cent of her working hours.

Consequently, Anne is entitled to a 2.49 per cent increase in her monthly salary when transitioning from overtime work with five weeks' holiday to additional work with six weeks' holiday.

When transitioning to a fixed salary, the employee must be compensated for the additional work and any hardship allowance that the employee has earned, on average, over the past 24 months. The resulting amount is added to the employee's salary.

Allan earns DKK 57,000 per month. In the past 24 months, he had 186 hours of additional work. During the same period, he took time off for 42 hours worked. Allan's net additional work hours in those two years therefore constitute 144 hours, equivalent to 6 hours per month.

Allan's weekly working hours have been agreed to 37 hours, equivalent to 160 hours per month. The 6 hours of additional work thus represent 3.75 per cent of the agreed working hours. Allan received no hardship allowance in the period in question.

Allan should therefore expect a pay increase of 3.75 per cent of DKK 57,000, corresponding to DKK 2,138 per month. His monthly pay upon transition to a fixed salary basis will thus be DKK 59,138.

Caroline earns DKK 54,050 per month. In the past 24 months, she had 242 hours of additional work. During the same period, she took time off for 74 hours of additional work. Caroline's additional work hours in those two years therefore constitute 168 hours, equivalent to 7 hours per month.

Caroline's weekly working hours have been agreed to 36 hours, equivalent to 156 hours per month. The 7 hours of additional work thus represent 4.5 per cent of the agreed working hours. During the period, Caroline also received a hardship allowance totalling DKK 67,200, corresponding to an average of DKK 2,800 per month.

Caroline should therefore expect a pay increase of 4.5 per cent of DKK 54,050 plus an additional DKK 2,800. This corresponds to a total pay increase of 2,432 + 2,800 = DKK 5,232, which increases her monthly pay to DKK 59,282 upon transitioning to a fixed salary.