The standard limitation period for vacation entitlements is three years. (Photo: © zerbor/123RF.com)
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1 October 2026
Employers must actively inform employees about their remaining vacation days and request them to take them in a timely manner. Those who fail to do so risk having to pay back vacation days.
The last quarter of the year is approaching, and employers should now inform their employees about the potential for their vacation entitlements to expire . Remaining vacation days for the current calendar year can be forfeited if they are not taken. However, this only applies if the employer has explicitly requested that employees take their vacation . Providing employees with thorough information protects them from legal risks and potentially large back payments.
Employees must generally take their vacation within the calendar year . Only under certain conditions can remaining vacation days be carried over to the following year – until the end of March.
However, the statutory minimum vacation entitlement only lapses if the employer actively participates: they must specifically and promptly request employees to take vacation and inform them of the impending forfeiture . This was the ruling first of the European Court of Justice (UCJ) and then of the Federal Labour Court.
Only if employees fail to take their vacation despite being adequately informed do their vacation entitlements expire after the deadline. This also applies, in case of doubt, to contractually agreed additional vacation days, unless otherwise stipulated.
Operations management
Operations management
Operations management
The standard limitation period for vacation entitlements is three years . However, this period only begins to run once the employer has fulfilled their obligation to cooperate . According to the Federal Labor Court, the limitation period only starts to run then.
This rule also applies to additional vacation days unless otherwise stipulated in the employment contract. If companies fail to provide proper information about vacation time and its expiration, vacation entitlements can remain valid for many years .
The issue of remaining vacation days becomes particularly relevant at the end of an employment relationship. Unused vacation days must be paid out . Companies must keep track of outstanding vacation entitlements. Otherwise, they risk unnecessary burdens, especially for long-term employees.
Current case law dictates that employers should communicate vacation entitlements in a structured, comprehensible manner each year . This includes, in particular:
A general mention in the employment contract or information leaflets is insufficient . Employers should document the individual information provided and how employees were accessed. In case of a dispute, companies must prove that they informed their employees correctly.
Practical tip: Sample letter for employersFor all employers Specialist lawyer for employment law Christian Hrach a message Sample wording for a legally secure request to employees.
Letter of request to take vacation
"In the current calendar year, you are entitled to __ days of vacation. [In addition, you still have __ days of vacation remaining from last year.] Your vacation entitlement [including any remaining vacation] generally expires on December 31.12 of that year if you are able to take it by then but still do not request it. Only if urgent operational concerns or personal reasons (e.g., illness) conflict with your vacation wishes will your vacation be carried over to the next calendar year. In this case, however, you must take it by March 31.03 of the next calendar year; otherwise, your vacation will expire. Please request your vacation so that it does not expire and to enable us to plan your vacation fairly."
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