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Vacation Entitlement Upon Termination: How to Secure Your Days Off

2026-05-26

Last Updated: May 2026
Reading Time: approx. 5 minutes

Legal Notice: This article provides legal information based on the German Civil Code (BGB) and the Federal Leave Act (BUrlG). It does not constitute legal advice. In the event of disputes regarding your vacation entitlement, you should consult a specialist lawyer for employment law.

Vacation Entitlement Upon Termination: What You Are Legally Entitled To

A termination raises many questions, especially regarding the remaining vacation entitlement upon termination. Many employees are unsure whether they can still take their remaining vacation or if it is forfeited. However, German employment law massively protects recreational leave: It is a legally guaranteed claim that does not simply perish upon termination of the employment relationship.

The Statutory Basis: § 7 Federal Leave Act (BUrlG)

The most important regulation for the granting and compensation of vacation is found in § 7 BUrlG.

  • Vacation must generally be granted and taken in the current calendar year.
  • If the vacation can no longer be granted in whole or in part due to the termination of the employment relationship, it must be compensated.

This means: If the time until the last working day is not sufficient to take the remaining vacation, the employer must pay it out in cash.

Proportional Entitlement or Full Vacation?

How much vacation you are entitled to depends crucially on the time of departure:

  • Departure in the first half of the year (until June 30th): You are entitled to one-twelfth of the annual vacation for each full month of the existence of the employment relationship.
  • Departure in the second half of the year (from July 1st): Provided you have been with the company for more than six months, you are entitled to the full statutory minimum vacation according to the law.

Important: Contractual additional vacation days can be regulated differently in the employment contract.

Vacation and Garden Leave (§ 535 BGB)

Often, a release from duties (garden leave) is agreed upon after a termination. Here, the exact wording regarding vacation is crucial:

The employer is obliged under § 535 (1) BGB to pay the agreed remuneration, even if they waive the work performance. If the vacation is to be used up during the release, the employer must declare this irrevocably. A release from duties after termination without an explicit reference to the crediting of vacation means that the vacation entitlement remains and must be compensated.

Reasonableness Check of Vacation Clauses (§ 307 BGB)

Employment contracts often contain clauses that attempt to restrict the vacation entitlement upon termination (e.g., "Forfeiture of remaining vacation in the event of resignation"). Such clauses are subject to a reasonableness check:

  • Provisions in standard contracts are invalid if they unreasonably disadvantage the employee contrary to the requirements of good faith.
  • An unreasonable disadvantage exists if a provision is incompatible with essential basic principles of the statutory regulation (such as the BUrlG).
  • Since the statutory minimum vacation is indispensable, clauses that cancel it upon termination are invalid according to § 307 (2) BGB.

Smart Preparation through AI Analysis

Estimating the proportional vacation and seeing through the structure of forfeiture clauses in the small print can be complex. Jurivo supports you in your preparation:

  • Entitlement Orientation: We help you estimate your potential statutory and contractual vacation entitlement based on your entry and exit dates according to common patterns.
  • Clause Scan: The AI compares your employment contract with typical argumentation patterns surrounding vacation clauses according to § 307 BGB.
  • Compensation Overview: Get an orientation guide on whether a payout of the remaining vacation is an issue or how releases usually affect the entitlement.

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Disclaimer: This article provides legal information based on the BGB and the BUrlG. It does not constitute legal advice. In the event of disputes regarding your vacation entitlement, you should consult a specialist lawyer for employment law.