Vacation entitlements do not expire: Employee rights strengthened!

Vacation entitlements do not expire: Employee rights strengthened!

Courts have recently made it clear that vacation claims do not automatically expire after three years. This important decision provides clarity and strengthens workers' rights. In particular, it was emphasized that proper notification by the employer is a prerequisite for the expiry of the limitation period. According to Sections 195 and 199 of the Civil Code (BGB), the start of the limitation period only comes into force when the employer has informed its employees about open vacation days, reports Fitness management.

This finding is based on a ruling by the Federal Labor Court, which determined that one-time information at the beginning of the year is sufficient for compliance with the obligation. However, it is advisable to send an additional reminder email during the year, especially in the second half of the year. This makes personnel planning easier and strengthens the company's legal position.

Vacation entitlements and their forfeiture

In the past rulings of the European Court of Justice (ECJ), it was also made clear that vacation claims only become statute-barred if employers enable employees to take vacation in a timely manner. An example shows that a tax clerk demanded financial compensation for the vacation she did not take because her heavy workload did not allow her to take it. Her employer invoked the statute of limitations according to the German Civil Code (BGB), but the Federal Labor Court ruled that the claims had not expired because the employer had not adequately informed the employee.

In addition, the ECJ has taken the view that in the case of sick leave, the statute of limitations only applies if the employer actively provided information. In two further cases in which claims for vacation entitlements occurred after long-term illnesses, the ECJ confirmed that the German regulations provide for a limitation period for vacation entitlements after 15 months after the end of the vacation year, provided that the employer has fulfilled its information obligations.

Legal situation and conclusion

The clear signal from the case law is that employers are not only obliged to inform their employees about remaining vacation and its possible expiration, but also to ensure that employees are able to take their vacation. The German limitation period of three years remains unproblematic, but the specific regulations for calculating the deadline must be interpreted in accordance with EU law.

The interesting question remains as to how specifically employers must inform their employees about vacation entitlements and how proof of these entitlements should be provided. Lack of clarity on this topic contributes to uncertainty in work organization.