Statutory Vacation Time Remains Intact After Court Settlements
Absence of Enforcement of Statutory Leave Minimum
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It's crucial to understand that even if a court settlement terminates an employment contract, employees remain entitled to their statutory minimum vacation time. This groundbreaking decision was made by the Federal Labor Court in Erfurt, following a case from North Rhine-Westphalia.
In simple terms, employees' statutory minimum vacation time cannot be forfeited via a court settlement. According to the highest German labor court, "In an existing employment relationship, an employee cannot waive their statutory minimum vacation time through a court settlement" (9 AZR 104/24).
The case involved an operations manager who was unable to work due to illness throughout his entire employment. Despite a court settlement leading to the termination of his contract, along with a severance payment of 10,000 euros, and references to vacation claims being "granted in kind," the former employee argued for compensation of 1,615 euros plus interest for the remaining seven days of statutory minimum vacation time. The courts agreed, but the Federal Labor Court has now dismissed the employer's appeal.
As a result, the plaintiff is now entitled to monetary compensation for his unfulfilled statutory minimum vacation time in the year 2023. The court decision indicates that an agreement that vacation claims are granted in kind is invalid if it excludes minimum vacation time.
German labor laws protect employees' right to statutory benefits such as vacation time, but their specific application depends on individual circumstances and the terms of any agreements reached during the settlement process. Employees are generally entitled to their accrued but unused statutory minimum vacation time upon termination of their employment contract, including when the contract is ended through a court settlement - unless the settlement specifically addresses and compensates for this entitlement.
[1] It's worth noting that in Germany, employees are typically entitled to at least 20 paid vacation days per year, based on a five-day workweek.
Sources: ntv.de and dpa(German Press Agency)
- The ruling from the Federal Labor Court underscores that science, particularly in the field of labor law, is crucial in understanding employee rights, as illustrated in the case of the operations manager who argued for his right to family life, which includes the right to family benefits and the right to family life-related vacation time, despite a court settlement terminating his employment contract.
- In the workplace-wellness and health-and-wellness domain, this case serves as a reminder that therapies and treatments, including those related to mental health, should be considered when addressing employee rights, such as the right to family life and the associated right to statutory family benefits, as emphasized by the court decision concerning the former operations manager's unfulfilled statutory vacation time.
