Workers entitled to allowance for unused annual leave | KPMG | GLOBAL

Workers entitled to allowance for unused annual leave, concludes CJEU

Workers entitled to allowance for unused annual leave

The Court of Justice of the European Union (CJEU) today issued a judgment concluding that given that Directive 2013/38 provides every worker is entitled to paid annual leave of at least four weeks, when the employment relationship ends and the paid annual leave cannot be taken, the worker is entitled to an allowance to account for the unused annual leave.


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The CJEU addressed the matter on referral from the Administrative Court of Vienna (Verwaltungsgericht Wien), and concerns a situation under which the city of Vienna determined that a civil servant who, at his own request terminates his employment relationship on retirement, was not entitled to an allowance for the unused annual leave. 

The CJEU judgment was issued in case C-341/15 (20 July 2016). According to a related CJEU release [PDF 115 KB], when workers themselves end their employment relationships, the workers are entitled to an allowance if they could not use up all or part of their right to paid annual leave.

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