Historical development and legal basis

The Federal Leave Act was promulgated on January 8, 1963 and has formed the fundamental legal basis for vacation leave in Germany ever since. It comprehensively defines employees’ vacation entitlements and creates a statutory minimum framework for paid annual leave. The law applies to all employees regardless of their form of employment – whether full-time, part-time or working from home. The core objectives of the law are to protect employees and ensure an appropriate period of rest. Historically, the law developed from the realization that rest is an essential part of the ability to work. The regulations have been continuously adapted to modern forms of work. The law strikes a balance between the interests of employers and employees.

Vacation entitlement and calculation

The statutory minimum vacation entitlement is 24 working days for a six-day week, which is equivalent to 20 working days for a five-day week. The full vacation entitlement arises after a six-month waiting period in the employment relationship. During this waiting period, the employee receives leave on a pro rata basis, i.e. one twelfth of the annual leave per full month of employment. Vacation pay is calculated on the basis of average earnings over the last 13 weeks before the start of the vacation. Collective agreements or employment contracts can extend, but not reduce, vacation entitlement. The calculation takes into account different working models and ensures a fair distribution of leave.

Transfer and settlement of vacation entitlements

The Federal Leave Act precisely regulates the transfer and compensation of leave entitlements. In principle, vacation must be taken in the current calendar year. Carryover is only possible under certain conditions, such as for urgent operational or personal reasons. Carried-over leave must be taken by March 31 of the following year. Upon termination of the employment relationship, unused vacation days are generally compensated financially. The compensation only applies to the statutory minimum leave, not to any additional leave agreed. These regulations safeguard employees’ vacation entitlements and offer flexibility in special situations.

Special vacation regulations

The law contains specific regulations for special situations such as illness during leave, maternity leave and parental leave. In the event of incapacity for work during vacation, the vacation days are not counted as taken. For part-time employees, vacation entitlement is calculated on a pro rata basis. Young people and trainees enjoy special protection through additional vacation regulations. The law takes into account different life and work situations and creates a comprehensive legal framework for vacation entitlements.

Legal enforcement and employee protection

The Federal Leave Act provides comprehensive mechanisms to protect employee rights. Employers are obliged to grant the statutory minimum leave and may not arbitrarily refuse leave entitlements. Employees can take legal action in the event of violations. The law prohibits the exercise of paid employment during vacation. The enforcement of vacation entitlements is ensured by labor law mechanisms and supervisory bodies.

Future prospects and challenges

Modern forms of work such as working from home and flexible working hours pose new challenges for the Federal Leave Act. Digitalization and changing working environments require continuous adaptation of leave regulations. Future amendments are likely to focus even more on the compatibility of work and private life. The law must maintain a balance between employer interests and employee protection.