In its judgment of 20 December 2022, case 9 AZR 266/20, the Federal Labour Court explained the importance of employer cooperation for limitation of statutory holiday claims. A simple three-year calculation from the holiday year is not always sufficient.
Legal context and practical consequences
Employees must generally be enabled to take their holiday through appropriate information and encouragement. A general contractual statement may not replace individual cooperation, and employers should retain evidence of the information given. Limitation, year-end expiry, carry-over and rules for prolonged illness are separate questions. Additional contractual holiday may be treated differently where a valid separate rule exists. Compensation on termination requires a further assessment of remaining entitlement.
Preparing the review
Provide contracts, amendments, relevant pay or attendance records and correspondence. Health information should be limited to what is necessary and kept out of general distribution lists. Translate the legal outcome into clear responsibilities for HR, managers and payroll. Collective participation and individual rights remain separate elements of the assessment.
Four practical examples
Example 1
An employer relies only on a general contract clause. Check whether individual information and encouragement were sufficient.
Example 2
Working days are reduced mid-year. Calculate the relevant periods without simply reducing all accrued leave.
Example 3
Long-term illness prevents holiday. Review the special rules and the timing of employer cooperation.
Example 4
Employment ends with unused leave. Determine the remaining entitlement before calculating compensation.
Source and further information
Official source · Related employment-law topic
Archive allocation: July 2026. Written and reviewed retrospectively on 13 November 2026. Court decisions retain their actual decision dates.