German labor law: Rules for remaining vacation and sick leave reporting

In Germany, employees face specific legal requirements regarding unused vacation days and sick leave reporting. Under the Federal Vacation Act, while the calendar year is the standard period for taking leave, the December 31 deadline is not an automatic expiration date. Following a 2019 Federal Labour Court ruling, employers can only claim that minimum statutory vacation days have expired if they have fulfilled their duty to inform. This requires the employer to specifically notify the employee of their remaining balance and explicitly warn them that the days will expire if not used.

Regarding sick leave, employees must report their incapacity to work immediately. If an employee's residence changes during a period of illness, this change must be reported to the employer and relevant social security institutions within three days. While employers are permitted to ask about an employee's location and expected duration of absence to manage business operations, they are not entitled to know specific medical diagnoses. Failure to comply with reporting obligations or reintegration duties can lead to financial consequences, including the reduction or cessation of wage payments.