Cutting No Corners: Court Says No Waiver on Minimum Vacation Days in Settlements
Waiving mandatory minimum leave is not required in this case.
Skip the chat, get straight to the deets! Here's the lowdown on those minimum vacay days, even when employment wraps up due to a court settlement. The Federal Labor Court in Erfurt recently made waves in North Rhine-Westphalia with this ruling. Here's what's up:
When an employment relationship is still alive, employees can't give up their statutory minimum vacation days through a court settlement, according to the highest German labor court (9 AZR 104/24). Am I making things clear as mud? Let's break it down:
Imagine you're hired as an operations manager but forced to call in sick from day one. However, unlucky us, a court settlement eventually axes the employment, with a 10k euro severance package. The settlement involves vacation claims being tossed around like they're nothing.
Well, the former operations manager wasn't pleased and demanded the remaining seven days of statutory minimum vacation pay, since the waiver in the settlement was ho-hum, in the court's opinion. Both the lower courts, including the Cologne Higher Labor Court, agreed. But alas, the Federal Labor Court has shot down the employer's appeal.
So, guess who's entitled to their unfulfilled statutory minimum vacation dough from 2023? Yup, you guessed it: the plaintiff. The court ruled that an agreement that vacation claims are granted in kind is sketchy and can't be used to waive minimum vacation.
If you're curious, the entitlement isn't a joke in the work world—German employees get 20 paid vacation days annually[1] as a minimum. These are usually safe unless explicitly waived in a court settlement or termination agreement.
And hey, just in case you're wondering about termination by court settlement: if an employment contract gets the ax due to a court settlement, the agreement might include provisions for vaction time, severance pay, or other benefits[1]. Generally, unless the settlement explicitly states otherwise, employees would still be entitled to any accrued but unused vacation days according to German labor law.
A final thought: the Federal Labor Court's decisions tend to jive with the principles of German labor law, which are all about employee rights and protection[1]. But specific outcomes can vary, and it's crucial for employees to comb through their settlement agreement to fully grasp their entitlements.
[1] ntv.de, dpa
In light of the court ruling, the right to family life extends to the right to family benefits, as an agreement that vacation claims are granted in kind cannot be used to waive minimum vacation, ensuring employees are entitled to their unfulfilled statutory minimum vacation pay. Additionally, the advancement in science can be applied to workplace wellness and health and wellness therapies and treatments, promoting a healthier work environment for employees.
