Vacation pay during short-time work

Vacation season is around the corner. Although vacations during the pandemic look different than usual because of the many distancing and hygiene rules, many people still don't want to give up their well-earned time off. But what do you need to keep in mind if the company you work for registers short-time work? What about vacation pay during short-time work? Are you entitled to it or not?

Taking time off during short-time work

During your short-time work, employees can generally take vacation. Many companies have so-called vacation lists for this. Using these lists, employees can request a coordinated vacation schedule from their bosses. As a rule, it is granted. Once the boss has approved vacation, it cannot be revoked. That would require the company to be on the verge of collapse, especially if the vacation has already begun.

Vacation entitlement during short-time work

For German employees, the European Court of Justice has issued a ruling on reducing vacation entitlement during short-time work. Under it, the minimum entitlement of four weeks of paid leave per year may only be reduced proportionally if entire working days are cut as a result of short-time work. National rules do not have to provide for this, however, and may set more favorable terms for employees on short-time work.
In Germany, legal experts dispute the legal situation against this background. The law alone is not decisive, though, since collective agreements often regulate this more favorably.

Vacation pay during short-time work - how does it work?

As for pay during vacation, the European Court of Justice has likewise ruled in favor of German employees. Employees are entitled to at least their usual vacation pay (regular earnings) while taking their statutory minimum vacation, regardless of any earlier period of short-time work.
What about additional vacation pay during short-time work?
Unfortunately, no universally valid answers are possible here. Employment contracts and collective agreements generally govern the entitlement to vacation pay. Since this is a voluntary benefit from the employer and thus a special payment, the employee has no legal entitlement to it. As a rule, the employer is therefore not obliged to pay vacation pay during short-time work. It's best to talk with your employer or works council beforehand and gather the necessary information to avoid misunderstandings.

Vacation pay during short-time work in brief:

  • Vacation pay, and thus a 13th-month salary, is a voluntary benefit from the employer
  • The terms are set out in the employment contract or collective agreement
  • In principle there is no entitlement to this special payment unless the contract provides otherwise
  • So normally there is no entitlement to vacation pay during short-time work
  • Those affected can find out more by talking with their employer, works council or union

Finally, a tip: it's always better to ask once more than to let misunderstandings arise.