Understanding Germany's Annual Leave Regulations: A Guide for International Employers

Germany's Federal Holiday Act (Bundesurlaubsgesetz or BUrlG) establishes clear guidelines for employee vacation entitlements. For employees working a standard six-day week, the law mandates a minimum of 24 working days of paid annual leave. When companies operate on a five-day work week (Monday through Friday), this entitlement adjusts proportionally to 20 working days annually.

Pro-Rata Vacation Calculation System

German vacation accrual follows a calendar-day basis, meaning entitlements are calculated according to the full calendar year regardless of employment start or end dates. After completing six months of service, employees gain full annual leave rights as stipulated in BUrlG §4.

For employment periods shorter than six months, BUrlG §5 outlines proportional entitlement: employees earn 1/12 of their annual leave for each full month worked. Crucially, any fractional leave amounting to at least half a day must be rounded up to a full day, protecting employees from losing entitled vacation time.

Practical Application Scenarios

Consider an employee with a 20-day annual entitlement working three months: 20/12 = 1.66 days monthly, totaling 4.98 days for three months. Since this exceeds 0.5 days, it rounds up to 5 full vacation days.

Another scenario involves enhanced benefits: an employee with a 30-day entitlement (20 statutory days plus 10 additional company days) working three months would accrue 7.5 days (3 × 2.5). However, if employment terminates during probation, the employee typically receives only the statutory 20-day pro-rated entitlement, not the enhanced 30 days.

Cross-Employer Vacation Coordination

Germany maintains strict calendar-year tracking: employees cannot double-dip vacation benefits across employers within the same year. If an employee used 5 vacation days at Company A before transitioning to Company B, those 5 days are deducted from their annual entitlement at the new employer. Previous employers must provide documentation verifying used vacation time.

Key Compliance Considerations

Fractional Day Treatment: Always round up fractional leave exceeding 0.5 days to full days
Probation Period Rights: Employees maintain vacation rights during probation, with proportional settlement upon termination
Multi-Employer Tracking: Implement systems to track vacation usage across employers within calendar years

Proper vacation management demonstrates organizational compliance and respect for employee rights. Companies like SailGlobal recommend establishing clear communication protocols and documentation processes to prevent disputes and ensure smooth international operations.

Germany Annual Leave Policy Guide: Compliance for International Employers