Are deceased employees entitled to holiday pay for accrued and untaken annual leave?
Employment solicitor, Nathalie Stewart, discusses the right to holiday pay in the case of Bollacke v Klass & Kock.
This a German case dealt with in the European courts. The employee was employed until his death in November 2010. At the time of his death he had accrued 140.5 days annual leave (due to how long he had been on sick for and unable to take the leave).
The matter was referred to the CJEU as to whether this annual leave was now extinguished or whether an employer must compensate an employee’s estate for his untaken but accrued annual leave.
The CJEU stated that there was a right to be paid accrued but untaken leave on termination. Its interpretation was that there’s no right in the Directive to curtail this in the event of death, so the holiday pay was owed.
What this means for you
If an employee does die in service, they have a right to be paid their accrued but untaken holiday up to the date of death/termination. The same is true for salary and other benefits that had been accrued up until the date they last worked.
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