Carryover leave (Resturlaub) is annual leave still untaken at year-end. In principle it must be taken within the calendar year and can only be carried over to 31 March for special reasons (§ 7 BUrlG). Following EuGH and BAG case law, leave lapses only if the employer clearly and in good time warned the employee about the impending forfeiture.
At a glance
- Statutory principle: leave is to be taken and granted within the current calendar year (§ 7 BUrlG)
- Carryover into the next year only for urgent operational or personal reasons; carried-over leave must then be taken by 31 March
- Forfeiture at year-end or at the end of the carryover period applies only if the employer met its Mitwirkungsobliegenheit (cooperation duty): a concrete request to take leave and a clear warning about forfeiture (EuGH, C-684/16)
- The three-year limitation period likewise starts only once the employer has met this duty
- For continuous long-term illness, statutory leave generally lapses 15 months after the end of the leave year (31 March of the year after next)
Separating statutory and contractual leave
The Bundesurlaubsgesetz sets 24 working days on a six-day week, that is 20 days on a five-day week. Anything above that is contractual extra leave, and the mandatory BUrlG rules do not apply to it.
That opens room to structure things which many contracts leave unused. For extra leave, a contract can provide for:
- earlier forfeiture, for example strictly on 31 December with no carryover
- exclusion of payment in lieu on termination
- pro rata reduction for joiners and leavers beyond § 5 BUrlG
- the order in which statutory and contractual leave are used up
The wording is what decides. Case law requires the intention to separate the two to appear clearly and independently from the contract. A different total number alone is not enough. Without an express rule, the extra leave follows the fate of the statutory leave, including the warning duty and the 15-month period during long-term illness.
This is one of the few places where a clean contract clause saves the employer substantial effort later. With 30 days of leave, ten of them can be freely structured.
The employer's Mitwirkungsobliegenheit
Under the case law the employer must actively and in good time ask employees to take their leave and tell them clearly that untaken leave will otherwise expire. If the employer omits this, the leave does not lapse but carries over and can accumulate. The employer bears the burden of proving the duty was met. In practice, a documented, individual reminder is safer than a general notice on a board.
FAQ
Does carryover leave automatically expire on 31 December?
No, not automatically anymore. Without a timely, clear employer warning about the impending forfeiture, the leave survives and carries over.
Does this cover contractual leave above the statutory minimum?
Only where the contract says nothing else. The case law concerns the statutory minimum. Different rules are permitted for extra leave, but they must appear clearly and independently in the employment or collective agreement. Without such a rule, the extra leave follows the fate of the statutory leave.
What happens during long-term illness?
If leave cannot be taken because of continuous illness, the statutory claim generally lapses only 15 months after the end of the leave year. If the employee was able to work for part of that year, the employer's warning duty applies on top.
Is carryover leave paid out on termination?
Yes. If untaken leave can no longer be granted because the employment ends, it must be compensated in cash (Urlaubsabgeltung, § 7 BUrlG). This claim, too, only becomes time-barred once the employer has met its warning duty.
How does a Freistellung affect carryover leave?
An irrevocable Freistellung can fulfil the leave; a revocable one cannot. As long as a recall remains possible, the person cannot freely dispose of the time and the leave survives. After the employment ends it then has to be paid out on top.
The release wording must therefore name the specific days that count as leave and be irrevocable for those days. A blanket phrase such as "crediting all leave entitlements" is not reliable under case law.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
