A worker who ends his employment relationship is entitled to an allowance if he cannot use up all or part of his right to paid annual leave, the European Court of Justice has ruled.
The decision was taken after the court heard a case instiuted by Hans Maschek, a civil servant in Vienna who retired, at his own request, on July 1, 2012.
Between November 15, 2010 and June 30, 2012, he did not report to his work place. He was on sick leave from November 15 to December 31, 2010. From January 1, 2011, he was required, in accordance with an agreement concluded with his employer, to not report to his workplace, while continuing to receive his salary.
After retiring, Mr Maschek asked his employer to pay him an allowance in lieu of paid annual leave not taken, claiming that he had fallen ill again shortly before he retired.
His employer refused his request on the grounds that, according to the rules on the remuneration of civil servant, a worker who, at his own request, terminates the employment relationship – particularly because he applies for retirement – is not entitled to such an allowance.
The Court said that in terms of EU directives, every worker is entitled to paid annual leave of at least four weeks and that the right to paid annual leave is a particularly important principle of EU social law. It is granted to every worker, whatever his state of health.
When the employment relationship comes to an end and paid annual leave can therefore no longer be taken, the directive states that the worker is entitled to an allowance in lieu in order to prevent the impossibility of taking leave leading to a situation in which the worker loses all enjoyment of that right, even in pecuniary form.
The court said that the reason why the employment relationship ended was irrelevant.
"The fact that a worker terminates, at his own request, the employment relationship has no bearing on his entitlement to receive, where appropriate, an allowance in lieu of the paid annual leave that he could not use up before the end of his employment relationship," it said.
Mr Maschek was therefore entitled to an allowance for the period 15 November to 31 December 2010, a period during which he was on sick leave and could not use up his entitlement to the annual paid.