Germany’s Federal Labor Court Rules on Loss of Annual Leave in Event of Long‑Term Illness
On July 15, 2025, the German Federal Labor Court (Bundesarbeitsgericht – BAG) further refined its case law on the lapse of annual leave where an employee is long term incapacitated for work due to illness. The court ruled in Case No. 9 AZR 198/24 that forfeiture may be precluded by more favorable contractual arrangements.