On 12 June 2014, a German Employment District Court held that the employer is obligated to grant the employee his holiday claim – even in cases where the employee did not apply for any holiday. Otherwise, so the Employment Court held, the employer is obligated to pay damages to the employee, if the holiday cannot be granted in kind – for example at the end of the employment relationship. Such ruling has not yet been approved by the German Federal Court of Employment Law. Therefore, it remains to be seen whether this ruling leads to the obligation of the employer to grant any outstanding holiday in kind during the ongoing employment relationship.
Please note that if an employee is entitled to outstanding holiday at the end of his employment relationship, he/she should be released irrevocably for the duration of any outstanding holiday claim. Otherwise, any outstanding holiday amount needs to be compensated for financially.