Bauer and Brossonn (Joined Cases C-569/16 and C-570/16), ECL...

Facts

• The joined cases of Bauer (C-569/16) and Brossonn (C-570/16) concerned the interpretation of Article 31(2) of the Charter of Fundamental Rights of the European Union (CFR), which establishes every worker's right to paid annual leave.
• National courts referred questions on the compatibility of their laws with the EU law requirements for paid annual leave, particularly regarding accumulation during sickness and compensation upon termination.
• The cases raised issues about whether individuals could directly invoke Article 31(2) CFR before national courts and the implications for national legislation on paid leave.
• Situations in question included workers unable to take annual leave due to long-term sickness and the right to receive financial compensation for untaken leave when employment ended.

Issues

1. Whether Article 31(2) CFR on paid annual leave is sufficiently precise and unconditional to have direct effect, allowing individuals to invoke it in national courts.
2. Whether national legislation restricting or undermining the accumulation of paid annual leave, particularly for workers on long-term sick leave, is compatible with EU law.
3. Whether financial compensation for untaken paid annual leave must be provided upon termination of employment, regardless of the reason for termination.
4. What the implications of this interpretation are for national legislation and judicial practice across EU member states.

Decision

• The CJEU held that Article 31(2) CFR has direct effect, permitting individuals to rely on it before national courts.
• The Court determined that the wording of Article 31(2) is sufficiently precise and unconditional, leaving no significant discretion to member states over its core content.
• National laws cannot negate or restrict the accumulation of paid annual leave entitlements, even for workers on long-term sick leave.
• Where employment ends and paid leave remains untaken, the worker must receive financial compensation, irrespective of the reason for the termination.
• Member states are required to ensure their legislation fully conforms with Article 31(2) CFR.
• The judgment necessitated changes in national legal systems and judicial practice to align with these principles.

Legal Principles

• Article 31(2) CFR sets out a fundamental social right to paid annual leave that is directly enforceable in national courts.
• Direct effect applies where EU law provisions are clear, precise, and unconditional.
• The right to paid annual leave encompasses both the entitlement to take leave and the right to financial compensation for untaken leave upon the end of employment.
• National legislation must not undermine or restrict the substance of this right as defined by the Charter.
• The judgment reinforces the CFR as a source of direct individual rights, harmonizing social standards across the EU.

Conclusion

The CJEU's decision in Bauer and Brossonn established Article 31(2) CFR as a source of directly enforceable rights, requiring EU member states to guarantee both paid annual leave and financial compensation for untaken leave, significantly impacting national employment law and practice.