Effective date: March, 31
Typical issues are a transfer to the following year including a granting of the preferred dates.
The German Federal Leave Act actually states that holiday has to be taken in the current calendar year. But according to statistics 80% of all employees take their remaining days of holiday to the following year. The effective date is March 31st – if it is not determined by collective bargaining.
If holiday cannot be taken because the employment ends, payment in lieu of holiday can cause another conflict. In connection with this almost any employee knows that if he or she leaves the company in the second half of the year he or she has a claim for the full annual holiday.
Current case-law says that even if the employee is on sick leave the whole year and further he has a claim for the full annual holiday.
It is even more important that employers know how to put acceleration clauses into an employment contract in order to prevent holiday claims from escalating.
Furthermore the employer can avoid holiday claims, which exceed from statuary minimum leave (or collective bargaining) by putting the right clauses into the employment contract.
If the employee is on sick leave most of the time his claims will strain the company only up to the point that the employer tolerates it to.