Holiday Balances in Germany: The Employer Notices You Must Send
Many employees return to work after the summer holiday period with unused leave still showing on their balances. For small businesses in Germany, this is a useful point to review open holiday accounts rather than waiting until the end of the year.
The practical issue is not only how much leave each employee has left. Employers should also consider whether employees have been clearly informed about their outstanding balances and the need to use their leave in time. The Kliemt.blog article on employer information duties highlights why this review should happen early: employers that act only shortly before the end of the year may leave employees without enough opportunity to schedule and take their remaining holiday.
For small businesses, the process can be handled as a focused HR and scheduling check.
Start With an Accurate Holiday Balance Review
Before sending any notice, confirm that the balance shown for each employee is reliable. A message based on an incorrect figure can create confusion and make it harder to demonstrate that the business gave clear information.
Review the records used to calculate leave, including:
- Holiday already taken and approved
- Holiday currently scheduled but not yet taken
- Requests that are waiting for a decision
- Any adjustments made after changes to working patterns or employment arrangements
- The remaining balance shown in the holiday or time-tracking system
This review should cover part-time and hourly employees as well as full-time staff. Their working patterns may differ, but the need for a clear and current record does not. If holiday requests are managed through several channels, such as email, paper forms, and messages to supervisors, consolidate the information before preparing the notices.
A consistent record also helps avoid the type of administrative confusion discussed in 5 Tips on How To Eliminate Payroll Mistakes. Holiday balances are not payroll figures, but the same principle applies: the business needs one dependable source of information before communicating with employees or making scheduling decisions.
If a balance cannot be confirmed, do not guess. Mark the account for review and resolve the underlying record before sending a definitive figure.
Identify Employees Who Need Clear Information
Once the balances have been checked, identify employees with outstanding leave that may be difficult to schedule later. This does not mean assuming that every unused day will automatically carry over or disappear. The safer approach is to contact employees individually and explain the position shown in the company’s records.
The notice should be easy to understand and should include, where the business can confirm it:
- The employee’s current outstanding holiday balance
- Holiday that has already been booked and is therefore not available for a new request
- Any request that is still awaiting approval
- The need to discuss and schedule remaining leave in good time
- The person or process employees should use to arrange their holiday
Avoid relying only on a general reminder sent to the whole workforce. A general message may be useful, but it does not replace checking whether each employee has received relevant information about their own balance. Employees who work different hours or shifts may need a more specific explanation of how their remaining leave is recorded.
The wording should remain factual and practical. Instead of presenting the message as a warning, explain what the records show and invite the employee to review their plans with the manager. If there is uncertainty about the correct legal treatment of unused leave, do not make a final statement about forfeiture or carryover without checking the applicable position.
Give Employees a Realistic Opportunity to Plan Leave
Sending information is only one part of the process. Managers should also check whether employees have a realistic opportunity to request and take the remaining holiday. A notice sent too late may not solve the problem if staffing needs, busy periods, or already approved absences make the available time difficult to use.
Small businesses should therefore compare open holiday balances with upcoming staffing requirements. Look for teams where several employees have unused leave, departments with limited cover, and workers whose schedules make it difficult to take longer periods away from work. This is where accurate shift planning matters. The goal is not to pressure employees into choosing dates that the business cannot support, but to identify possible conflicts early enough to discuss them.
A simple review meeting can help. The manager can confirm the balance, ask whether the employee has planned any leave, and record any agreed next steps. Keep the conversation separate from performance discussions or unrelated issues. Employees should be able to understand that the purpose is to manage holiday properly and avoid a last-minute problem.
For businesses that coordinate work across changing schedules, Effective Communication For Shift Managers offers a related practical principle: shift information needs to reach the people affected and should not depend on informal assumptions. Apply the same approach to holiday planning by recording decisions and communicating changes promptly.
Keep a Record of the Notice and Follow-Up
Create a basic record for each employee showing when the balance was reviewed, what information was provided, and whether follow-up was needed. The record does not need to be complicated. It can be part of the existing HR or time-management process, provided that access is controlled and the information remains current.
If an employee says the balance is incorrect, pause the scheduling discussion long enough to investigate the discrepancy. Compare the holiday record with approved requests and any relevant working-time records. If the business changes the balance, issue an updated notice rather than leaving different figures in different systems.
Managers should also record unresolved cases, such as pending requests or situations where staffing needs make scheduling difficult. A follow-up list prevents the business from treating the first notice as the end of the process.
The aim is straightforward: employees should know what holiday the business records as outstanding, understand that they need to plan it in good time, and have a clear way to raise questions. Employers should be able to show that they reviewed balances, communicated clearly, and followed up where necessary.
A Practical Check Before the End of the Year
Do not wait for a final rush to discover that several employees still have significant holiday balances. Review the records now, send individual and understandable notices, and compare remaining leave with the staffing plan. Then set a follow-up date for unresolved balances and pending requests.
This approach does not replace advice on the specific legal treatment of holiday in an individual case. It does, however, give small businesses a practical way to meet their information responsibilities more consistently and reduce the risk that unused leave becomes a problem because the employer waited too long to act.