Advice for employers: inform employees now about vacation days expiring July 1, 2026!

In our practice, we see that many employers assume vacation days automatically lapse if employees do not take them. This is a persistent misconception. Vacation days only lapse if the employer meets strict conditions. If not, the days remain outstanding, potentially resulting in significant accumulations of unused leave.

Legally, statutory vacation days lapse six months after the end of the calendar year in which they were accrued (on 1 July), and non-statutory vacation days expire five years after the end of the calendar year in which they were accrued (on 1 January). However, lapse or expiry only occurs if:

1. The employee was informed in a timely and clear manner about the number of outstanding statutory vacation days and their impending lapse; and
2. The employee was actually given the opportunity to take those days.

These requirements follow from established case law of the Court of Justice of the European Union. For example, an employee who is fully incapacitated for work and has not yet started reintegration does not have that opportunity. In such cases, vacation days do not lapse, even if the employer informed the employee in time.

For this reason, we advise our clients to send employees an annual reminder including:

• The outstanding balance of vacation days
• The date on which the vacation days will lapse
• A request to take them in time

In this context, maintaining an accurate and up-to-date leave administration is essential. This prevents disputes or negotiation issues regarding outstanding vacation days upon termination, which occurs regularly in practice.

This month (February) is a good time to inform employees. They will then have ample time to plan their leave before 1 July 2026. Would you like a template email? Please contact us