The latest case to tackle unused annual leave has been decided by the Court of Justice of the European Union (CJEU).
In Max-Planck-Gesellschaft v Shimizu, the Court had to decide whether a worker loses their right to the minimum annual leave entitlement provided under EU law if they do not apply to use it during the leave year.
The CJEU found that they do not lose the entitlement, unless the employer had diligently given the worker the opportunity to take it.
Writing in Daniel Barnett’s employment law update Ed McFarlane, litigator at Deminos HR, explained the circumstances of the case: “Mr Shimizu worked at the Max Planck Institute, a private scientific support institution in Germany, until 2013. He brought a claim for unpaid holiday from 2011 and 2012. Under German law, he lost the right to carry over untaken leave from one year to the next. The German Federal Labour Court referred two questions arising to the CJEU.”
The CJEU highlighted that the Working Time Directive stipulates that if a worker does not exercise the right to paid annual leave, it should not automatically be lost unless the employer has brought it to the worker’s attention that they will miss out if they do not take it.
“Employers need not require employees to take leave, but must inform them accurately and in good time of the right,” said McFarlane.
