Lüderitz in ‘Personalwirtschaft’ on Major Legal Changes Regarding Compensation for Unused Holidays

February 14, 2019

Hamburg Counsel Martin Lüderitz commented Jan. 31 in Personalwirtschaft  concerning recent rulings of the European Court of Justice on the compensation for unused holidays that caused major changes for employers in Germany. According to the first ruling, even if the employee did not apply for paid vacation, compensation may be due when the employee leaves the company. Furthermore, in a second decision, the court ruled that compensation claims of employees for paid annual leave do not lapse with their death. Accordingly, heirs may claim financial compensation for unused holidays. Lüderitz shows in detail which consequences these new legal standards have for employers. He points out that companies must take the necessary precautions to avoid compensation claims for unused holidays. With respect to deceased employees, he argues that employers should meet claims for compensation to avoid legal disputes with the heirs. Personalwirtschaft is one of the leading magazines on human resources in Germany.