Annual leave planning - what employers really need to know

According to the German Federal Leave Act (BUrlG), every employee is entitled to paid leave. The minimum vacation entitlement is 24 working days for a 6-day week (i.e. 20 days for a 5-day week) and can be increased by collective agreement or employment contract.

Section 7 BUrlG applies to the determination of the vacation period:

• The employee's vacation requests must be taken into account, provided that no urgent operational concerns or social aspects of other employees take precedence.
• Employers have a duty of consultation and consideration before refusing leave.

1. Unilateral vacation planning without involving the employee
   Employers can generally set vacation dates, but must first examine and weigh up the employees„ vacation requests. A stubborn “boss's decision" without taking other interests into account may be unlawful.


2. Missing or late vacation requests
   Employers are allowed to set binding deadlines by which employees must submit their vacation plans. If this deadline is missed, the vacation entitlement does not automatically expire - however, the employer may be less able to take the requests into account at a later date and, under certain circumstances, determine them themselves.


3. Remaining vacation and information obligations
   A particularly relevant point is the obligation to inform employees in good time and specifically that vacation days not taken could expire at the end of the year or after the carry-over period. Without this individual notification, the leave does not expire automatically - which can lead to considerable accumulated leave entitlements.


4. Transfer of vacation
   Leave that has not been taken can only be carried over to the following year if there are urgent operational or personal reasons on the part of the employee. And even then, the leave must generally be taken by March 31 of the following year at the latest.

1. Early vacation planning: Set internal deadlines for vacation requests within the company and define company vacations or special vacation periods in good time. This makes planning easier for everyone involved.


2. Documentation: Keep a written record of rejected vacation requests, company vacations and information letters. This is important in the event of later labor court disputes.


3. Active memory: Create a process in the fall or at the turn of the year in which you remind employees individually to take their remaining leave before it expires. Without a specific reminder, leave is often deemed not to have expired.


4. Consider social aspects: When weighing up operational requirements and employee wishes, any family commitments (school vacations, childcare) must be taken into social consideration.