The monetisation of leaves at the end of the employment relationship

It is contrary to European Union law to prohibit the payment of an allowance to an employee concerning leave days not taken at the time of termination of employment.

In its decision of 18 January 2024, delivered in Case C-218/22, the European Court of Justice ruled that national provisions to contain public expenditure do not recognise an allowance for leave accrued and not taken by the employee at the end of the employment relationship are contrary to Community law.

This article was originally written by the Labour Law Observatory team, to which we refer for the whole text. Click here to read the full text.