EU Ruling on Employer-Organized Travel Time Sparks New Cost Risks for German Businesses
Published on 06/23/2026 at 13:54 | Redaktion boerse-global.de
A European Court of Justice decision from October 2025 (Case C-110/24) has redefined employer-arranged group transport to work sites as full working time, creating potential back-pay liabilities for German companies that stretch up to three years. The ruling becomes especially consequential when unpaid travel hours push a worker’s effective hourly wage below the statutory minimum — which is due to climb to €13.90 by January 1, 2026, and to €14.60 a year later.
The legal shift arrives as a separate political push gains momentum. In late June 2026, the SPD leadership proposed raising Germany’s statutory minimum annual leave from 20 to 21 days, a change that would affect an estimated four million employees. Trade unions have already secured targeted gains: following negotiations with ver.di, public-sector workers will see their leave entitlement increase from 30 to 31 days starting in 2027. Business representatives, however, warn that additional leave mandates pile further burdens on employers.
While German employers navigate new working-time and leave rules, UK businesses must also keep their health and safety compliance up to date. The Health and Safety at Work Act 1974 requires thorough documentation — risk assessments, policies, and training records. A free toolkit provides ready-to-use templates, checklists, and toolbox talks that help you meet these obligations without starting from scratch. Over 37,000 UK companies already rely on it. Download the free Health & Safety Toolkit
Courts Clarify Vacation Rules and Employer Duties
Several recent German labor rulings have also reshaped how leave must be handled. On March 2, 2026, the Thuringia State Labor Court (Case 4 Ta 15/26) struck down company policies that cap consecutive vacation at two weeks. Employers must now grant three-week breaks unless urgent operational or personal reasons justify a refusal.
The Federal Labor Court (BAG) addressed employer obligations during an employee’s absence in a December 4, 2025 ruling (Case 2 AZR 55/25). When a planned dismissal based on suspicion is under consideration, the court said, employers must attempt to contact the worker even while they are on holiday. An absolute ban on contact does not exist; if the employer stays passive, the strict two-week exclusion period for lodging such a dismissal may expire.
In a separate July 15, 2025 decision (Case 9 AZR 198/24), the BAG confirmed that leave claims for workers on long-term illness only expire 15 months after the end of the relevant leave year.
Vacation Pay Still Tied to Collective Bargaining
New survey data from the Lohnspiegel.de portal, based on responses from more than 50,000 employees collected between May 2025 and May 2026, shows that only 44 percent of private-sector workers in Germany receive additional vacation pay. The disparity is starkly linked to collective bargaining coverage. In companies bound by a union wage agreement, 73 percent get the bonus; in non-union workplaces, the share plunges to 35 percent. According to the Institute for Employment Research (IAB), overall tariff coverage now stands at about 49 percent.
The amounts vary enormously by sector and region. Farmworkers in Mecklenburg-Western Pomerania see payments as low as €186, while employees in the wood and plastics industry in Westphalia-Lippe can receive up to €2,904. In the iron and steel industry of North Rhine-Westphalia, combined holiday and Christmas bonuses reach €3,363. Since 2005, the public sector has paid no separate vacation bonus.
Ensuring compliance in the workplace goes beyond leave and pay — health and safety law is another area where UK employers often face unexpected gaps. Many only discover missing documentation during an inspection. A free toolkit specifically for the Health and Safety at Work Act 1974 includes risk assessments, director liability guidance, and training checklists — nine tools in total to help you stay legally protected. Get the free Health & Safety at Work Act 1974 Toolkit
The Disconnect: Many Workers Stay Plugged In
A study published on June 22, 2026, by the Austrian Trade Union Federation (ÖGB) found that 45 percent of employees check work messages while on holiday. Labor lawyers emphasize that leave is meant for recuperation, not standby duty — unless explicit on-call arrangements have been contractually agreed.
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