Annual Leave Entitlements And Permanent Incapacity For Work

An employer and an employee were in dispute over a claim for payment of outstanding annual leave after termination of employment. This is because, upon termination, existing annual leave entitlements are converted into a right to financial compensation. The plaintiffs' claim, therefore, required an existing annual leave entitlement at the time of termination.

The reason for the termination was the claimant's permanent incapacity to work since 2006. In June 2019, the employee was granted a corresponding reduced earning capacity allowance until the age of retirement. As a result, the employment relationship was terminated at the end of the month on the basis of a corresponding provision in the applicable collective agreement. The claimant sought financial compensation for all annual leave entitlements from 2006 to 2017.