Annual leave
is paid holiday entitlement: the EU floor is four weeks, with many countries above it (25+ days in France and the Nordics), Switzerland at four (five under many CBAs and for younger workers), the UAE at 30 calendar days, and parts of Asia leaner. Untaken leave has cash value at exit almost everywhere.
The rules behind the day counts
- Accrual vs entitlement: some systems grant full-year entitlement upfront, others accrue monthly — affects starters and leavers.
- Carry-over limits: EU case law protects leave lost to illness; national rules cap carry-over periods, with forfeit dates employers must communicate.
- Payout at exit: accrued untaken leave is paid in final settlements as standard; during employment, cash-out is often restricted.
- Duty to enable: several systems (Germany’s case law) require employers to actively invite leave-taking — silence forfeits nothing.
FAQ
Can employees be paid instead of taking leave?
During employment, mostly no for statutory minimums — leave exists for rest, and cash-out is limited to the excess above minimums where allowed at all. At termination, accrued leave converts to pay everywhere. Chronic non-taking is a compliance flag, not a saving.
How does leave work for part-timers and starters?
Pro-rata by work pattern and service months: a mid-year starter on 80% accrues accordingly. Public-holiday interaction differs per country — some count holidays falling in leave, most do not — so localise the calculation rather than templating it.