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
- 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.
- 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.
- 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.