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
EU: insurance sector social partners commit to addressing violence and harassment at work
The news. The trade union UNI Europa Finance and the employers’ federations Insurance Europe, Amice and Bipar signed an addendum to their 2022 joint declaration on diversity and inclusion on...
18 September 2026
Juliette Baudry (Boiron): “An intergenerational mechanism to better accommodate different life stages”
Since 1 September 2026, employees of the pharmaceutical group Boiron (1,700 employees in France) have benefited from a “key life moments account”. Resulting from an agreement signed last February...
18 September 2026
France: final document on the work of the Labour, Employment and Pensions Conference
After six months of discussions between French social partners, the guarantors of the Labour, Employment and Pensions Conference submitted the conclusions of the discussions to the Prime Minister...
17 September 2026
EU: Commission proposes a list of worker-related criteria for public procurement
The news. On 9 September, the European Commission published a proposal for a regulation aimed at unifying European public procurement law, which accounts for 15% of European GDP. It is notably set...
17 September 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
Spain: government seeks to strengthen protection for employee whistleblowers
On 28 July, the Spanish Council of Ministers approved a draft bill aimed at providing legal protection to employees who report corruption or breaches of labour law, shielding them from potential...
27 August 2026
2
France: Cabinet adopts pay transparency bill
After several months of delay beyond the European deadline of 7 June 2026, French Labour Minister Jean-Pierre Farandou finally presented the bill transposing the Pay Transparency Directive to the...
10 September 2026
3
Netherlands: Uber fined over 800 million euros for automated algorithmic decisions
The news. In a decision dated 17 August, the Dutch Data Protection Authority fined ride-hailing company Uber €825 million for automating decisions regarding driver account deactivations. The...
4
Italy: Crédit Agricole introduces a handbook on managerial behaviour
The document adopted in mid-July by Crédit Agricole Italia and the main banking trade unions goes beyond the proper use of meetings and emails. This six-point handbook aims to foster constructive...
3 September 2026
5
Spain: government revisits its draft decree on salary transparency
The Spanish Ministry of Labour has opened a consultation on the transposition of the European directive on salary transparency and the reduction of the gender pay gap. This decision follows a...
8 September 2026
6
Germany: introduction of the concept of partial incapacity for work
The news. On 10 July, the German Parliament definitively adopted the “Act to Stabilise Contribution Rates in the Statutory Health Insurance System”...