The Federal Labour Court (BAG) clarified in a recent ruling dated 3 June 2025 (case reference 9 AZR 104/24) that a waiver of statutory minimum vacation entitlements cannot be validly declared through a court settlement, unless this vacation waiver has been expressly and unambiguously agreed to clear up uncertainties.
What was at issue in the specific case?
In the underlying case, an employee had waived alleged vacation entitlements as part of a judicial settlement. The BAG clarified, however, that vacation under the Federal Vacation Act (BUrlG) is a strictly personal right. As a rule, this right cannot be revoked through a blanket settlement clause. A valid vacation waiver requires an unambiguous and deliberate agreement aimed at clearing up uncertainties — one that takes into account the special protection afforded to the right to vacation.
What is the significance of this decision?
This ruling protects employees from unintended or tacit waiver of (minimum) vacation entitlements and underscores the protective function of vacation law as an indispensable employment right.
Particularly when concluding judicial settlements going forward, heightened caution is therefore advised.
For all matters of employment law, our specialist attorney for employment law Mr Alexander Fuchs will be pleased to advise you.
