ᐅ ECJ ruling | New German vacation law

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Experience the future of corporate management: let your employees manage their own data with Employee Self Service!

from Lisa Paar | Oct 2, 2024

Why is trust-based working time so controversial? In this blog, we will tell you what trust-based working hours really mean, what opportunities and risks they entail and which legal regulations employees and employers must observe.

Trust-based working hours: flexibility or control and transparency through time recording?

from Linda | Jul 16, 2024

The previous regulation stated that the entitlement to annual leave generally expires at the end of the year. According to a ruling by the European Court of Justice (ECJ), the remaining leave from the previous year can no longer simply expire, as was previously the case.

Vacation entitlement can no longer expire automatically

However, according to the latest ruling by the ECJ, unused vacation may not automatically expire. However, it is the employer's responsibility to make employees aware of unused or unplanned leave.

Annual leave can only be forfeited if the employer can prove that it has adequately informed the employees concerned about the impending forfeiture of leave and has given them the opportunity to actually take the leave. To do this, the employer must formally request the employee to take the leave and inform them clearly and in good time that the leave will expire if they do not take it.

Only if these conditions are met can the entitlement to leave or compensation payments lapse if the leave has not been taken.

Vacation entitlement can also be inherited

The European Court of Justice (ECJ) has ruled that an employee's leave entitlement does not expire after their death and that heirs can demand financial compensation for leave not taken. The Federal Labor Court (BAG) had previously heard this case and referred it to the ECJ for judgment. According to national law, financial compensation for untaken leave does not become part of the estate, as the purpose of paid annual leave is the employee's recuperation, which can no longer be achieved after the employee's death.

However, the ECJ ruled that an employee's vacation entitlement does not expire upon their death and that heirs can demand financial compensation if national law is incompatible with EU law. The right to paid leave therefore includes an entitlement to payment during the leave and to a compensatory payment for days of leave not taken at the end of the employment relationship. This financial compensation payment is of a pecuniary nature and is intended to become part of the employee's assets. In the event of the death of an employee, the heirs are entitled to this payment.

There is also an interesting post about this from Gregor Gutzelnig on LinkedIn.

Personnel cloud - e-mail reminder

As a Personnel Cloud administrator, you have the option of sending an automatic email to all employees. This e-mail informs your employees how much vacation time is still available from the previous year and by when it should be used up. The content of the e-mail can be adapted to your specifications and legal guidelines and changed at any time.