Client Legal Update: Judgment of the Federal Labor Court (BAG)
See below this judgment from 20 December 2022 on the merits and limitations of annual vacation entitlements.
Summary
On 20 December 2022, the German Federal Labor Court (“BAG”) ruled that the entitlement to statutory minimum vacation is only subject to the three-year year statute of limitations if the employer has (i) previously informed its employees about their specific vacation entitlements and that the vacation will lapse if they do not take it and (ii) the employee then freely decides not to take them (See judgment – 9 AZR 266/20).
If the employer fails to do so, the corresponding vacation claims…