It is authority for the proposition that:
- the ECJ TUPE case of Henke v Gemeide Schierke and Verwaltuingsgemeinschaft Brocken remains the most unpronounceable case name out there, but only just (do feel free to challenge me on this!); and,
- more importantly, it is unlawful for EU states to allow employers to replace the minimum four weeks' paid holiday with pay in lieu, even when the holiday year has expired and the holiday allowance carries over into the following year.
The ECJ has ruled that this practice is contrary to Article 7(2) of the Working Time Directive, which requires Member States to ensure that every worker is allowed four weeks' paid annual leave, and that this annual leave may not be replaced by a payment in lieu (except after termination of employment).
The ECJ's reasoning is, essentially, that permitting pay in lieu for untaken holiday entitlement in subsequent years might provide an incentive for employees, incompatible with the objectives of the Directive, not to take their full leave entitlement (which is an important health & safety measure) during the year.
Federatie Nederlandse Vakbeweging v Staat der Nederlanden