Managing holiday entitlements under German labor law is becoming increasingly complex for employers.

Following current case law, employees' holiday entitlements no longer expire automatically if they fail to take their leave. Instead, the employer must actively fulfill its obligation to cooperate with the employee to allow forfeiture to occur.

The German Federal Leave Act (Bundesurlaubsgesetz) stipulates that annual leave must generally be granted and taken within the same calendar year. If leave cannot be taken in time due to urgent operational reasons or personal circumstances—such as illness—it may be carried over until 31 March of the following year. Special regulations may apply in certain cases, including pregnancy, parental leave, additional leave for severely disabled employees, or specific contractual agreements.

Das Bundesarbeitsgericht und der Europäische Gerichtshof haben diese Grundsätze weiterentwickelt. Danach erlischt der Urlaubsanspruch mit Ende des Kalenderjahres oder nach Ablauf des Übertragungszeitraumes nur dann, wenn der Arbeitgeber den Arbeitnehmer „zuvor konkret“ aufgefordert hatte, den Urlaub zu nehmen und darauf hingewiesen hat, dass der Urlaub andernfalls mit Ablauf des Urlaubsjahres oder des Übertragungszeitraumes erlischt.

To ensure holiday entitlements can lawfully expire, employers must provide employees with explicit and timely notification each year. This obligation extends not only to statutory minimum leave but, unless expressly agreed otherwise, also to any additional contractual leave. Exceptions exist only in special circumstances, such as long-term illness.

The employer is obliged to provide this information every year anew every year.

By fulfilling the obligation to inform, the employer can prevent unexpected holiday claims from arising in the new year or in the event of a dispute. Clear communication ensures legal certainty for both the employer and your employees, protecting you from unnecessary commercial risks. We can support you in establishing a legally compliant notification process tailored to your organization’s needs.

DITGES law firm, with offices in Bonn and Munich, provides interdisciplinary advice on labor law, covering both individual and collective employment law matters.

For further inquiries, please do not hesitate to contact us:

Prof. Dr. Renate Dendorfer-Ditges LL.M. MBA Lawyer / Specialist in Labor Law, Commercial and Corporate Law, International Commercial Law / Certified Mediator

Philipp Wilhelm LL.M. Lawyer / Certified Mediator