EU: paid annual leave must be taken into account when calculating the overtime work hours threshold (CJEU judgment)

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

In a judgment handed down on 13 January 2022, the Court of Justice of the European Union ruled that an employer could not exclude the “the hours corresponding to the period of paid annual leave” from the calculation intended to “determine whether the threshold of hours worked giving entitlement to overtime pay is reached.” A German worker claimed 72 euros, as a 25% supplement on 22.45 hours worked, because he believed that the 184-hour overtime threshold had been exceeded during a period in August 2017 when he had worked 121.75 hours over 13 working days and taken 10 days of paid leave (84.7 hours). The worker’s appeals action was dismissed on the basis of the Framework Collective Agreement for temporary employment, which states that only the hours worked can be counted to establish whether the worker has exceeded the threshold above which the pay rate for hours worked is increased. Referred to by the German Federal Labour Court, the CJEU however considered that this collective agreement provision “could be capable of deterring a worker from exercising his or her right to paid annual leave”, which is part of the EU Charter of Fundamental Rights. This is in order to benefit from the extra pay allowed by higher overtime pay rates. The provision of the collective agreement is therefore declared illegal, as “any practice or omission of an employer that may potentially deter a worker from taking his or her annual leave is incompatible with the purpose of the right to paid annual leave.”

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
France: Malakoff Humanis signs agreement for older workers offering “a la carte” end-of-career options
The social protection group Malakoff Humanis (10,500 employees in France) and trade union organisations signed a three-year agreement on 6 March dedicated to employees aged 50 and over. This...
Romania: collective bargaining stalled in the banking sector
The news. In a joint statement published on 9 March, the European trade union UNI Europa and its Romanian affiliates (FSAB and FSIF) called on Société Générale (BRD)...
France: Club Med includes “multiculturalism” in its professional equality agreement
In December 2025, Club Med and the CFTC, Unsa, and FO trade unions signed an agreement on professional equality and working conditions. It introduces measures addressing AI, pay transparency, and...
23 March 2026
Spain: business support package to tackle the economic impact of the Middle East conflict
The Spanish government approved a series of measures on 20 March to support companies facing rising energy prices. In return, these businesses are prohibited from making redundancies for economic...
23 March 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
France: Yves Rocher convicted of breach of duty of vigilance for infringement of freedom of association
The specialised chamber of the Paris Judicial Court convicted Yves Rocher on 12 March for breaching its duty of vigilance. The group was sued by Turkish employees dismissed in 2018 by a subsidiary...
12 March 2026
2
2026 TRENDS – CSR: A strategic asset for European companies?
mind HR is looking ahead at the trends set to shape 2026. Sustainability policy remains in flux after a year of CSR rollbacks across Europe. Companies are calling for greater predictability and...
26 February 2026
3
Spain: business support package to tackle the economic impact of the Middle East conflict
The Spanish government approved a series of measures on 20 March to support companies facing rising energy prices. In return, these businesses are prohibited from making redundancies for economic...
23 March 2026
4
Germany: a corporate group supports local political engagement via its “Democracy Charter”
Large corporations in the Hesse region, surrounding Frankfurt, are defending local democracy by enabling employees to volunteer in local public life through an initiative dubbed the "Democracy...
11 March 2026
5
EU: Council adopts position on simplifying AI rules
The Council of the EU approved its position on 13 March regarding the “omnibus regulation” proposal, published last November by the Commission to simplify the AI Act. Confirming the...
20 March 2026
6
United States: Coca-Cola subsidiary sued by the administration over women-only event
The Equal Employment Opportunity Commission (EEOC) announced on 18 February that it is launching federal proceedings against Coca-Cola Beverages Northeast for “sex-based...
6 March 2026