Annual leave (German: Erholungsurlaub) is the legally guaranteed, paid entitlement to time off that employees hold against their employer. Under the Federal Leave Act (Bundesurlaubsgesetz, BUrlG), the statutory minimum is 24 working days per year based on a six-day working week – which equals 20 working days in a standard five-day week. Collective bargaining agreements and individual employment contracts can provide for higher entitlements; 25 to 30 days are common in practice.
What Is Annual Leave? Definition
Annual leave refers to the paid time off from work to which employees are legally entitled. The term reflects its purpose: employees should rest, protect their health, and recover from the demands of working life. The legal basis in Germany is the Federal Leave Act (BUrlG), which has been in force since 1963.
Annual leave should be distinguished from special leave (Sonderurlaub): this is a paid day off granted for a specific personal event – such as a wedding, the birth of a child, or a bereavement. There is no general statutory entitlement to special leave; it must be agreed in a collective agreement or employment contract, or may arise under § 616 of the Civil Code (BGB) in cases of brief personal incapacity. Special leave days are not deducted from the annual leave entitlement.
Legal Framework: The Federal Leave Act (BUrlG)
Scope: Who Does the BUrlG Apply To?
The Federal Leave Act applies to all employees in Germany, regardless of industry, working hours, or contract type. This includes full-time and part-time employees, apprentices, marginally employed workers (Minijob), and employees on fixed-term contracts alike. Temporary agency workers also have leave entitlements under the BUrlG, directed against their placement agency.
The BUrlG does not apply to self-employed individuals or freelancers, as they do not enter into an employment relationship.
Statutory Minimum Leave (§ 3 BUrlG)
Under § 3 BUrlG, the statutory minimum annual leave entitlement is 24 working days per calendar year. Working days (Werktage) are all days except Sundays and public holidays – that is, Monday through Saturday. In a standard five-day week (Monday to Friday), this translates to 20 working days.
Most collective agreements and employment contracts provide for higher entitlements. In Germany, the average collectively agreed leave is around 28 to 30 working days per year.
Calculating Leave Entitlement
Full-Time vs. Part-Time – Formula and Examples
Leave entitlement is not based on the number of hours worked per day, but on the number of working days per week. Employees who work fewer days per week receive fewer leave days accordingly – but their total entitlement in weeks remains the same.
Formula:
(Full-time leave days / Full-time working days per week) × Part-time working days per week = Part-time leave entitlement
Example:A full-time employee works five days per week and has 30 days of annual leave. If they switch to a three-day week, their new entitlement is calculated as follows:
30 / 5 × 3 = 18 leave days
This calculation applies regardless of whether the working days are evenly or unevenly distributed across the week.
Pro-Rated Leave: Year of Joining, Year of Leaving, Probationary Period
Under § 4 BUrlG, employees only acquire their full annual leave entitlement after a waiting period of six months. This waiting period is not the same as a probationary period in legal terms, but often coincides with it.
Before the six months have elapsed – and when joining or leaving mid-year – the pro-rated leave entitlement applies: one twelfth of the annual entitlement accrues for each full month of employment.
Example: With an annual entitlement of 24 days and a start date of 1 October, the entitlement for the current year is 3 × 2 = 6 leave days (October, November, December).
Many employment contracts waive the waiting period and grant full leave entitlement from day one. Where a contractual provision is more favourable than the statutory rule, the contract prevails.
Leave Planning, Carryover, and Forfeiture
When Must Leave Be Taken?
As a general rule, leave must be granted and taken within the current calendar year (§ 7 para. 3 BUrlG). Carryover to the following year is only permissible for urgent operational or personal reasons – for example, an unforeseen project deployment or illness towards the end of the year. Carried-over leave must then be taken by 31 March of the following year.
Responsibility for leave planning rests with the employer, who must nonetheless take employees' wishes into account. Social considerations take priority – for instance, school holiday periods for parents.
When Does Leave Expire – and When Does It Not?
Automatic forfeiture of leave on 31 December or 31 March is not permissible under current case law if the employer has failed to fulfil its duty to inform. The Court of Justice of the European Union (CJEU) clarified in 2018 rulings (including C-619/16, Kreuziger) that leave only expires if the employer has expressly and in good time informed employees that unused leave will be forfeited – and if the employee actually had the opportunity to take it.
The Federal Labour Court (Bundesarbeitsgericht, BAG) has adopted this position (judgment of 19 February 2019, ref. 9 AZR 321/16): an employer who fails to warn employees of impending forfeiture loses the right to rely on forfeiture.
Special rule for long-term illness: Employees who are continuously incapacitated for work may accumulate leave entitlements for up to 15 months after the end of the leave year before they expire (CJEU, C-214/10, KHS AG).
Special Rules in Leave Law
Illness During Leave (§ 9 BUrlG)
If employees fall ill during their leave and provide a medical certificate of incapacity for work (Arbeitsunfähigkeitsbescheinigung, AU), the days of illness are not counted as leave (§ 9 BUrlG). Those leave days are preserved and may be taken at a later date.
The medical certificate must be submitted without delay. Employees should also inform their employer as early as possible. The obligation to provide a certificate also applies abroad – certificates issued in other countries are generally accepted.
Payment in Lieu of Leave Upon Termination
If leave cannot be taken before the employment relationship ends, it must be compensated in cash (§ 7 para. 4 BUrlG). Paying out leave while employment is ongoing is not permitted – the recuperative purpose of leave must be safeguarded.
The amount of the payment in lieu is calculated on the basis of the average remuneration over the last 13 weeks before termination (§ 11 BUrlG).
Special rule: An employee whose employment ends in the second half of the year and who has been employed for at least six months is entitled to the full annual leave – not merely the pro-rated portion. For employees leaving earlier, the one-twelfth principle applies.
Practical Implementation for HR
Leave law is a recurring theme for HR professionals. The following points help to avoid common errors:
Actively fulfil the duty to inform: Employers are required to notify employees with significant remaining leave – at the latest in the third or fourth quarter – in writing that their leave is at risk of expiring. This notification should be documented.
Recalculate leave on contractual changes and mid-year joiners or leavers: Leave entitlements should be recalculated whenever a contract is amended and whenever an employee joins or leaves mid-year. Calculation errors frequently lead to disputes at the point of settlement.
Documentation: Comprehensive records of leave requested, approved, and taken are important not only for HR administration but are also legally significant in the event of a dispute.
Communicate leave blackout periods clearly: Operational leave blackout periods – for example during peak season or high-demand periods – must be communicated clearly and in good time. Employees may not take leave during these periods, but their entitlement remains intact.
If you want to position fair and transparent working conditions as part of your Employer Branding, a clear and legally sound leave policy sends a visible signal both internally and externally. The actual use of annual leave also plays a relevant role in workplace health.
Frequently Asked Questions About Annual Leave
How many days of annual leave are employees legally entitled to?
The statutory minimum is 24 working days per year (§ 3 BUrlG) – based on a six-day working week. In a five-day working week, this equates to 20 working days. Collective agreements and employment contracts may provide for more; 25 to 30 days are typical in practice. Apprentices are subject to the special provisions of § 19 of the Vocational Training Act (BBiG), which are age-dependent.
What is the difference between annual leave and special leave?
Annual leave is the statutory guaranteed yearly leave entitlement under the BUrlG. Special leave refers to time off for a specific personal event – such as a wedding, the birth of a child, or a bereavement. There is no independent statutory right to special leave; it must be agreed under a collective agreement, an employment contract, or § 616 BGB. Special leave is not deducted from the annual leave entitlement.
What happens to my leave if I fall ill during my holiday?
If you fall ill during your leave and provide a medical certificate of incapacity for work, the days of illness are not counted as leave (§ 9 BUrlG). Those leave days are preserved and can be taken at a later date. Important: inform your employer without delay and submit the medical certificate promptly.
Can remaining leave be carried over to the next year?
As a general rule, leave must be taken within the current calendar year. Carryover to the following year is only permissible for urgent operational or personal reasons (§ 7 para. 3 BUrlG) and must be taken by 31 March at the latest. However, under current CJEU and BAG case law, leave only expires if the employer has expressly warned the employee of the impending forfeiture. For employees on long-term sick leave, an extended carryover period of 15 months applies.
How is leave paid out upon termination?
Leave that can no longer be taken before the end of the employment relationship is compensated in cash (§ 7 para. 4 BUrlG). The amount is based on the average remuneration over the last 13 weeks (§ 11 BUrlG). An employee who leaves in the second half of the year and has been employed for at least six months is entitled to the full annual leave entitlement.
How much leave do I have during my probationary period?
The full annual leave entitlement is only acquired after six months of employment (§ 4 BUrlG, the so-called waiting period). Before that point, a pro-rated entitlement of one twelfth per full month of employment applies. Many employment contracts, however, grant full leave entitlement from the outset – the contract takes precedence over the statutory rule where it is more favourable.
How is leave calculated for part-time employees?
The determining factor is the number of working days per week, not the daily number of hours. The formula is: (full-time annual leave / full-time working days per week) × part-time working days per week. Example: 30 days full-time at a five-day week → at three days per week = 30 / 5 × 3 = 18 leave days.
Can an employer refuse to grant leave?
Yes – but only for urgent operational reasons or because the leave wishes of other employees take priority (§ 7 para. 1 BUrlG). Employees' leave preferences generally take precedence. Leave that has already been approved cannot ordinarily be revoked. The works council (Betriebsrat) has co-determination rights regarding the establishment of general leave principles.
Conclusion
Annual leave is a fundamental employment right clearly regulated by the Federal Leave Act (BUrlG). The statutory minimum entitlement is 24 working days (20 working days in a five-day week); collective and contractual arrangements frequently go beyond this. For HR professionals, the most practically relevant issues are the duty to warn employees of impending forfeiture, accurate calculation for part-time and mid-year joiners, and the rules on payment in lieu of leave upon termination.
Current CJEU and BAG case law has substantially curtailed automatic leave forfeiture: employers who fail to proactively warn employees of impending expiry risk seeing leave entitlements accumulate indefinitely. Careful documentation and proactive communication protect organisations against unexpected retrospective claims.
If you want to make not only your leave management but your entire recruitment process more objective and fair, the digital platform Aivy supports HR professionals with scientifically validated aptitude diagnostic tools – developed as a spin-off of Freie Universität Berlin. Learn more about objective personnel selection with Aivy.
Sources
- Federal Leave Act (Bundesurlaubsgesetz, BUrlG). Federal Republic of Germany, current version.
https://www.gesetze-im-internet.de/burlg/ - Guide to Leave Law. Federal Ministry of Labour and Social Affairs (BMAS), 2023.
https://www.bmas.de/ - BAG, judgment of 19 February 2019, ref. 9 AZR 321/16 (leave carryover and duty to inform).
https://www.bundesarbeitsgericht.de/ - CJEU, judgment of 6 November 2018, ref. C-619/16 (Kreuziger – leave forfeiture where no warning given).
https://curia.europa.eu/ - CJEU, judgment of 22 November 2011, ref. C-214/10 (KHS AG – accumulation of leave during long-term illness).
https://curia.europa.eu/ - Schaub, Günter: Arbeitsrecht für die Praxis [Employment Law in Practice]. C.H. Beck, 2024.
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