Federal Court Upholds Minimum Vacation Rights

The Federal Labor Court has clarified that employees retain the right to their statutory minimum vacation, even in cases of court settlements that terminate employment contracts. In a recent ruling from North Rhine-Westphalia, a former plant manager successfully claimed compensation for seven days of minimum vacation, despite an agreement stating vacation entitlements were 'granted in kind.' The court deemed such exclusions invalid, reinforcing that minimum vacation cannot be waived.

This decision underscores the inviolability of statutory vacation rights. Even when employees reach a settlement to end their employment, they cannot forfeit their minimum vacation entitlements.

In this instance, the employee had been unable to take leave due to illness. The court ruled that the minimum vacation of 24 working days per year could only be compensated financially upon termination of the contract, not while still employed.

This landmark ruling emphasizes the protection of employee rights regarding vacation entitlements and ensures that individuals cannot be deprived of their legal minimum vacation under any circumstances.