German Workers Risk Losing Unused Leave by March 31—Unless Employers Fail to Warn Them
German employees must use their remaining annual leave by March 31—or risk losing it. But strict legal rules mean employers cannot simply let unused leaves disappear. The law requires clear, written warnings before any leave expires, and without them, workers may keep their entitlement indefinitely.
Recent court rulings have reinforced these protections, ensuring employees do not lose out due to poor communication from their bosses.
Under the Bundesurlaubsgesetz (BUrlG § 7 Abs. 3), employers must notify staff in writing about unused leave before the March 31 deadline. If they fail to do so, the leave does not expire. This rule was confirmed by the Bundesarbeitsgericht (BAG) in decisions from December 20, 2022 (9 AZR 266/20) and February 19, 2019 (9 AZR 541/15).
The European Court of Justice (ECJ) has gone further, stating that employers must spell out the remaining leave balance, the deadline, any compensation period, and the consequences of not taking time off. Without this explicit information, employees retain their leave rights—even if they fall ill or face workplace disruptions. Most workers in Germany receive 35 paid days off per year, with an extra day after four years of service. Unused leave due to exceptional circumstances, such as heavy workloads, must be taken in the first three months of the new year. However, if employers do not properly notify staff, the standard 15-month carryover period for sick leave does not apply. Even long-term illness does not cancel out untaken leave if the employer has not followed notification rules. In some sectors, like pharmacies, staff must use carried-over leave by March 31 or lose it. But urgent operational needs, such as staff shortages, can still block approved time off. Employers must balance these demands while ensuring workers know their rights before deadlines pass.
The rules are clear: without proper written notice, employees keep their unused leave. Employers who miss the notification deadline leave themselves open to legal challenges. Workers, meanwhile, should check their leave balances and request written confirmation if warnings have not arrived.
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