From Holiday Blocks to Pay Disclosure: German Employers Face Tighter Worker Obligations
26.06.2026 - 09:25:44 | boerse-global.de
A recent ruling by Thuringia’s state labour court has put businesses on notice: capping consecutive holidays at two weeks is no longer legal. The decision, handed down on 2 March 2026, emerged after an employee secured an injunction for 17 straight days of leave – only for her employer to refuse to release her despite a lower court order in her favour.
Judges at the Landesarbeitsgericht (LAG) ThĂĽringen pointed to Section 7(2) of the Bundesurlaubsgesetz (BUrlG), which requires that annual leave be granted as a continuous block wherever possible. Splitting vacation is only permissible if at least one part lasts twelve working days. A general staffing shortage is not a valid excuse for denying that minimum.
Keeping up with legal obligations can feel like a minefield. While German employers now face stricter holiday rules, UK businesses must ensure their health and safety documentation is always compliant. A free toolkit provides ready-to-use risk assessments, checklists, and toolbox talks to help you meet the Health and Safety at Work Act 1974. Download the free Health & Safety Toolkit
The statutory minimum holiday entitlement remains unchanged for 2026: 20 days for a five-day working week, or 24 working days for a six-day week. Full entitlement accrues only after six months of employment. During probation, workers accumulate one-twelfth of their annual leave each month.
On pay, the law does not mandate a separate holiday bonus. However, collective agreements make a difference: 73 percent of workers covered by a tariff contract receive extra holiday money, compared with just 35 percent of those without such coverage. The basic holiday pay – the continued salary during leave – is unaffected by this.
Employers can no longer automatically let leftover leave expire at year-end. They must individually and verifiably inform each employee of outstanding days off and actively require them to take the time. A note on the payslip or a posting on the intranet does not suffice.
For long-term illness, a special rule applies: untaken leave expires 15 months after the end of the holiday year. The Bundesarbeitsgericht set that deadline in July 2025. When employment ends, unused days must be paid out.
Just as holiday rules are tightening, so are health and safety compliance expectations. Many UK businesses are unaware of the specific documents needed to satisfy the Health and Safety at Work Act – until an inspection reveals gaps. A free toolkit with nine tools, including a director’s liability guide and inspection checklists, can help you stay ahead. Get the free Health & Safety at Work Act 1974 Toolkit
Parallel to these holiday rulings, a new EU pay transparency directive came into force on 7 June 2026. Companies with 100 or more employees now have to report on their pay structures. Job advertisements must already include salary details – a right candidates can enforce.
At the same time, Germany’s labour ministry is drafting more flexible working-time rules. A June 2026 proposal would allow collective bargaining partners to agree on weekly rather than daily maximum hours, provided working time is recorded electronically.
Unions, meanwhile, are pushing for paid cooling breaks during the current heatwave sweeping Western Europe. They argue that the health risk at work rises statistically significantly once temperatures hit 30 degrees Celsius.
