What is residual leave?
Remaining vacation refers to the remaining vacation days of an employee that have not been taken in the current calendar year. These vacation days can be carried over to the next year under certain conditions.
Statutory vacation entitlement
According to § 3 of the Federal Leave Act (BUrlG), the statutory minimum leave is 24 working days per year for a six-day week. With a five-day week, this corresponds to 20 working days. The full vacation entitlement arises after six months of uninterrupted employment with the company.
Forfeiture of remaining vacation
In principle, vacation must be taken in the current calendar year. Carryover to the following year is only possible if this is justified for urgent operational or personal reasons. In such cases, the remaining leave must be taken by March 31 of the following year, otherwise it will be forfeited.
However, the European Court of Justice (ECJ) has ruled that remaining leave does not automatically expire. Employers are obliged to inform their employees in a timely and transparent manner of the existing leave entitlement and the impending expiry. If this information is not provided, the leave entitlement remains in place.
Transfer of remaining vacation
The remaining vacation can be carried over to the following year if.
- there are urgent operational reasons (e.g. high workload),
- personal reasons (e.g. illness) prevent utilization.
In these cases, the remaining leave must be taken by March 31 of the following year.
Payment of remaining vacation
Payment of the remaining vacation is only permitted if the employment relationship ends and the vacation can no longer be taken. In this case, the employee is entitled to financial compensation for the remaining vacation days.
Digital support with time recording solutions from ZMI
ZMI’s time recording solutions help companies to manage remaining leave efficiently and in compliance with the law.
- Automated vacation management: Clear display of vacation entitlements and balances.
- Transparent communication: Automatic notifications about remaining vacation and impending expiry.
- Legal certainty: Documentation of the employer’s obligations to cooperate to avoid legal disputes.
By using ZMI time recording solutions, companies can optimize vacation planning and reliably comply with legal requirements.