Two-Week Vacation Limit Unlawful, Says German Court in Landmark Ruling
04.06.2026 - 08:05:23 | boerse-global.de
The ThĂĽringer Landesarbeitsgericht dealt a blow to many company handbooks on 2 March 2026 by declaring that any internal rule restricting consecutive holiday to a maximum of two weeks violates the Bundesurlaubsgesetz (Federal Holiday Act). The court held that statutory holiday must, in principle, be granted in one uninterrupted block unless urgent operational or personal reasons justify splitting it. The ruling overturns a widespread practice in smaller and mid-sized firms and gives employees a clear right to longer breaks if they wish.
The decision emerges alongside a series of recent judgments that underline just how quickly German labour law can trip up employers — and how carefully workers need to know their rights.
IKEA Layoffs in Dortmund Face a Legal Gauntlet
In Dortmund, IKEA’s planned restructuring offers a high-profile test of those rules. The IKEA IT Germany GmbH is set to close by October 2026, eliminating 63 positions, while the IKEA Purchasing Services Germany GmbH intends to cut 170 of its 270 jobs by the end of this year, leaving 100 roles at the site. The local measures follow a global announcement on 18 May 2026 by the Inter IKEA Group that it would shed 850 positions worldwide and relocate tasks to Warsaw.
Labour lawyers note that the German cuts must comply with strict Sozialauswahl (social selection) criteria and require a Massenentlassungsanzeige (mass dismissal notification) to the Federal Employment Agency. Any procedural slip could render the dismissals invalid.
Pregnancy After a Dismissal: A Special Protection That Overrides Size
A case now circulating among employment law experts shows why timing matters. An employee of a small firm with two years’ service received a termination notice and was placed on irrevocable leave until the end of her notice period. The day after she filed a challenge, she discovered and reported her pregnancy.
Under the Mutterschutzgesetz (Maternity Protection Act), pregnant women enjoy special dismissal protection regardless of company size — unlike the general dismissal protection, which only applies in firms with more than ten full-time staff and after six months’ tenure. The key point: a valid termination must be in writing, and any leave arrangement must be explicitly stated either in the dismissal letter or a separate agreement.
Company Cars, Sick Notes and Settlement Traps
Other recent decisions add to the picture. The Landesarbeitsgericht Niedersachsen awarded an employee monthly compensation of €510 for loss of use of a company car after his employer revoked it during irrevocable leave — but only because a valid revocation clause was missing. Employers who allow private use need airtight contracts.
At the Arbeitsgericht Heilbronn, an employer successfully refused to pay €700.21 in continued sick pay after a worker repeatedly called in sick immediately after returning from holiday or after a holiday extension was denied. The court ruled that such a pattern destroys the evidentiary value of a medical certificate; the employee then has to prove their actual incapacity.
For UK employers, these rulings are a reminder that workplace policies must be legally watertight — especially around health, safety, and employee rights. A free toolkit helps you stay compliant with UK regulations, covering risk assessments, fire safety, and more. Download the free Health & Safety Toolkit
Don’t Sign Anything in Haste
A separate legal advisory issued on 2 June 2026 urges dismissed employees to pause: never sign a settlement agreement or any document straight after receiving a termination notice. Experts recommend checking all deadlines, waiting for emotional reactions to subside, and only acting after independent legal review.
