Max-Planck-Gesellschaft zur Förderung der Wissenschaften eV...

Facts

• Mr. Shimizu was employed as a researcher by Max-Planck-Gesellschaft.
• He was unable to take his annual leave during his employment due to work-related stress.
• Upon termination of employment, Mr. Shimizu sought payment for untaken annual leave, including leave accrued during periods of illness.
• The dispute concerned entitlement to compensation for untaken leave accrued specifically as a result of illness.
• The case required interpretation of Directive 2003/88/EC regarding workers’ rights to paid annual leave when prevented by sickness.

Issues

1. Whether Directive 2003/88/EC entitles workers to carry over and receive compensation for paid annual leave not taken due to illness, including work-related stress.
2. Whether Member States may restrict or limit the carry-over and accumulation of paid annual leave when illness prevents its use beyond the leave year.
3. Whether national legislation conflicting with these EU entitlements must be amended to comply with EU law.

Decision

• The CJEU ruled that the right to paid annual leave under Article 7 of Directive 2003/88/EC is fundamental.
• Where a worker is unable to take annual leave due to illness, including work-related stress, the employer must allow indefinite carry-over of such leave.
• Member States cannot impose restrictions on the period for which annual leave can be carried over in these circumstances.
• Employers are required to implement policies enabling indefinite carry-over of annual leave if illness or work-related stress prevents its use.
• The entitlement accrues independently of the worker’s ability to work.
• National laws inconsistent with these EU protections must be brought into compliance with the Directive.

Legal Principles

• Article 7 of Directive 2003/88/EC ensures at least four weeks' paid annual leave as a fundamental social right.
• The entitlement to paid annual leave accrues even when a worker is unable to take leave due to illness, including work-related stress.
• The right to paid annual leave is intended to safeguard workers' health and ensure proper rest.
• Employers and Member States must provide workers a genuine opportunity to exercise annual leave rights, including indefinite carry-over if prevented by illness.
• National legislation cannot derogate from the minimum annual leave standards established by EU law.
• Previous CJEU cases, including Stringer v HMRC (C-520/06), Schultz-Hoff (C-350/06 and C-520/06), KHS AG v Schulte (C-131/12), and Bollacke (C-118/13), support these principles.

Conclusion

The CJEU confirmed that when workers are prevented by illness, including work-related stress, from taking paid annual leave, they must be allowed to carry over such leave without limitation, and national laws and employer practices must comply with Directive 2003/88/EC.