Advisory, 5 January 2026

Holiday planning at work

Which regulations apply to employees?

Sonnenliege am Strand

At the start of the year, many employees begin making new holiday plans – after all, antici-pation is often the best part of any trip. Unfortunately, disagreements with colleagues or the boss are not uncommon. To help avoid any nasty surprises, Sabine Brandl, a legal expert at ERGO Rechtsschutz Leistungs-GmbH, explains the statutory regulations around annual leave and employees’ rights regarding unused holiday.

How much holiday are employees entitled to?

To help compensate for the often stressful working life, employees are legally entitled to paid time off. “According to the Federal Holiday Act, employees are entitled to 20 days’ holiday per year if they work a five-day week, or 24 days for a six-day week,” explains Sabine Brandl. However, col-lective agreements or individual contracts may grant more generous allowances – often up to 30 days. For part-time staff and those on mini-jobs, entitlement depends on the number of days worked: the fewer days worked, the less holiday accrued. “If the calculation results in a fractional day, employers must round up from half a day,” adds the ERGO legal expert. In cases of ‘zero’ short-time work or parental leave, employers are permitted to reduce holiday entitlement according-ly.

Does your boss have to approve your holiday?

Anyone wishing to take annual leave must have it approved, unless there are urgent business rea-sons to refuse. “This could be the case if there’s a sudden increase in workload or if several em-ployees are off sick at the same time,” says Brandl. New employees still on probation accrue one twelfth of their annual leave entitlement per month, and can only request their full allowance after six months. Once leave has been approved, the employer can only revoke it in genuine emergencies, for example if the business cannot continue to operate in the employee’s absence. “Anyone who goes on holiday without their employer’s permission risks instant dismissal,” the legal expert warns.

Who gets priority?

But what happens if several employees want time off at the same time? “Generally, holiday is granted to whoever requests it first,” explains Brandl. To avoid disputes, she recommends discuss-ing holiday plans with colleagues in advance and finding a fair solution for everyone. If agreement can’t be reached, the employer must decide based on social criteria. “For example, those who ha-ven’t had a break for a long time, or who need rest due to illness, are given priority,” says Brandl. Other factors, such as having school-age children or who was off during peak periods in previous years, may also be taken into account.

Unused holiday: Recent ruling strengthens employees’ rights

Some employees carry unused holiday over into the new year. “The legal situation has recently changed in favour of employees. Annual leave from the previous year no longer expires automati-cally,” explains Brandl. “According to a ruling by the Federal Labour Court on 20 December 2022, employers are now required to inform staff in good time that they need to take any remaining holi-day, and to warn them explicitly that it will otherwise be lost. If they fail to do this, the holiday enti-tlement remains valid indefinitely.” Employees can even claim holiday from previous years retro-spectively, provided their (former) employer did not inform them of the risk of forfeiture.

Can employees have their holiday paid out?

Although some employees may be tempted to boost their income by having their untaken holiday paid out, this is not permitted under the law, as adequate rest cannot be guaranteed in this way. “However, if the employment relationship ends and the employee is unable to take their remaining leave, payment in lieu of holiday may be possible,” Brandl notes.


Note: Our articles reflect the factual and legal status at the time of publication and are not updated afterwards.

About the Expert

Sabine Brandl

Sabine Brandl heads the Directorate / Major Claims at ERGO Rechtsschutz Leistungs-GmbH. The fully qualified lawyer and trained insurance saleswoman began her professional career in 1998 as an advisor in the product management for legal protection at ERGO Versicherung AG, following her second state examination. Since then, she has held various staff and management positions, remaining dedicated to the field of legal protection to this day.

Sabine Brandl

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