What is compulsory leave?
Compulsory leave refers to a unilateral order by the employer in which employees are obliged to take leave without having requested it themselves. This form of leave is credited to the regular leave account and is usually taken for operational reasons, such as planned plant closures, weather-related downtime or a serious drop in orders.
When is compulsory leave permissible?
The basis for granting leave is the Federal Leave Act (BUrlG). According to Section 7 (1) BUrlG, employees’ vacation requests must be taken into account unless there are urgent operational reasons to the contrary. Compulsory leave is therefore only permitted under certain conditions – for example during company vacations or if there is a significant lack of orders that makes it impossible to plan workloads. Such a measure may also be legal during natural disasters or officially ordered closures (e.g. during pandemics).
Bridge days are a special case: employers may only order compulsory leave if this is absolutely necessary for operational reasons and has been clearly communicated in advance and regulated in a socially acceptable manner. It is advisable to define bridge days in the annual leave plan.
Company vacations and legally compliant implementation
Compulsory leave is often ordered as part of company vacations, e.g. between Christmas and New Year or during the main holiday period. In order to implement this in a legally secure manner, the employer should announce company vacations in advance – ideally at the beginning of the calendar year – and coordinate them with the works council. Company vacations must be planned transparently, distributed in a socially fair manner and documented. In accordance with Section 87 (1) No. 5 BetrVG, the works council has a full right of co-determination in the establishment of vacation principles and the timing of vacation.
What happens to the vacation account?
In principle, compulsory leave is treated in the same way as regular recreational leave: The vacation days are deducted from the annual leave entitlement and the salary continues to be paid. If an order is issued during a period for which approved leave has already been taken, the employee’s own leave entitlement remains in place. Unilateral withdrawal by the employer is generally not permitted.
How long can compulsory leave be ordered?
The duration of compulsory leave must remain proportionate. Complete vacation planning by the employer is not permitted. According to case law, only a reasonable proportion of annual leave – around 3/5 depending on the situation – may be scheduled as part of company vacations or compulsory leave. The remaining time should be at the employee’s free disposal.
Can compulsory leave be ordered in the event of a lack of orders?
In the event of economic bottlenecks or a lack of orders, employers may not resort to compulsory leave without further ado. An order is only permissible if other options such as short-time working or flexible working time models have been exhausted. In addition, the works council must be involved and the measure must be well documented.
International regulations: Austria and Switzerland
In Austria, unilateral vacation orders by the employer are not permitted. Leave can only be taken by mutual agreement; compulsory leave is not provided for under labor law.
The situation is similar in Switzerland: employers can order company vacations, but must give plenty of notice (at least three months in advance) and take into account the personal situation of the employees. Excessive or short-term orders can be contested.
Sectors with typical compulsory leave practices
Forced leave occurs particularly in the following sectors:
- Retail: during stocktaking or in times of low sales
- Gastronomy & tourism: In the low season or during company vacations
- Construction industry: weather-related closures in the winter months
- Administration & Education: During vacation periods or the turn of the year
- Industry & manufacturing: Production downtime, maintenance phases or plant shutdowns
Conclusion
Compulsory leave may only be imposed under certain legally defined conditions. Employers are well advised to maintain open communication, involve the works council at an early stage and give good reasons for the order. Only in this way can the measure be implemented in a socially responsible and legally compliant manner.