Leave Planning in the Company: How to Organize Absences in a Structured Way
Leave requests, company-wide shutdowns, remaining leave — how to organize leave planning fairly, transparently and without conflict. With practical tips and a checklist.
Leave planning sounds simple — until three employees want time off during the summer holidays at the same time and the business still has to keep running. Finding the right path between employee wishes, operational requirements and statutory rules is one of the most common challenges in workforce planning.
This article gives you a practical overview of the most important rules, typical mistakes and concrete tips for leave planning that works in day-to-day operations.
Legal basics at a glance
The most important rules on leave planning can be found in the Federal Leave Act (BUrlG). Here are the key points that are particularly relevant for day-to-day operations:
| Topic | Rule | Legal basis |
|---|---|---|
| Minimum entitlement | 24 working days (6-day week) / 20 working days (5-day week) | § 3 BUrlG |
| Leave requests | The employee's wishes must be taken into account | § 7 (1) BUrlG |
| Continuous grant | At least one block of leave with 12 consecutive working days | § 7 (2) BUrlG |
| Carry-over | In the event of urgent reasons, until 31 March (note the employer's duty to inform) | § 7 (3) BUrlG |
| Compensation on departure | Unused leave must be paid out upon termination | § 7 (4) BUrlG |
Important note
The rules listed here reflect the statutory basics. Employment contracts, collective agreements and works agreements may contain more favourable rules. In case of doubt, the entitlement that is more favourable for the employee applies (the favourability principle).
Employees' leave requests: what the law provides
Under § 7 (1) BUrlG, the employee's wishes must be taken into account when scheduling leave. In practice, this means: the employee requests a period, and the employer approves or refuses it.
Under the framework of § 7 (1) BUrlG, the employee's wishes generally take priority. The employer can refuse a leave request in particular for two reasons:
- Urgent operational concerns — e.g. seasonal peaks, stocktaking, critical project phases or minimum staffing in shift operations
- Overriding leave requests of other employees — based on social considerations (e.g. school-age children, health reasons)
Practical tip
A transparent process helps to avoid conflicts: whoever requests first is considered first (first-come, first-served) — supplemented by social criteria in the event of a tie. Many businesses regulate this through a works agreement.
When can a leave request be refused?
Refusing a leave request is only permissible within narrow limits. The law names two grounds for refusal (§ 7 (1) BUrlG):
Urgent operational concerns
Not every operational wish is sufficient. The reasons must be urgent — e.g. acute staff shortages during a peak season, not merely organisational inconveniences.
Overriding leave requests
If not everyone can get time off at the same time, social considerations must be taken into account: school-age children, care of relatives, health reasons.
Once leave has been bindingly approved, it can, as a rule, not be unilaterally revoked under the prevailing case law. Exceptions are recognised only in extreme emergencies. This should be kept in mind when granting approval.
Remaining leave and carry-over to the next year
Section 7 (3) BUrlG provides that leave should, in principle, be taken within the current calendar year. A carry-over to the following year is only possible if there are urgent operational reasons or reasons relating to the person of the employee. In that case, the leave must be granted and taken by 31 March of the following year.
The employer's duty to inform
Under current Federal Labour Court (BAG) case law, the employer must inform employees in good time and transparently that remaining leave is set to lapse. Without this notice, the leave may, under certain circumstances, not lapse — irrespective of the statutory deadlines. This is often referred to as the employer's "duty to cooperate".
Company-wide shutdowns and leave freezes
A company-wide shutdown (e.g. between Christmas and New Year) is permissible if there are urgent operational reasons. However, limits apply:
- As a rule, the employer may not designate the entire annual leave as a company-wide shutdown
- Employees should be able to dispose freely of the larger part of their leave
- The company-wide shutdown should be announced early so that employees can plan
Leave freezes for certain periods (e.g. the Christmas season, stocktaking weeks, trade-fair periods) are also generally possible — but require that urgent operational concerns actually exist and that the freeze is proportionate.
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5 tips for leave planning in practice
Plan early
Collect leave requests for the coming year by the end of January. The sooner you have an overview, the fewer conflicts arise.
Set up transparent rules
Define clear criteria: who requests first, who has social priority? Ideally in a works agreement or an internal guideline.
Define minimum staffing
Set for each area how many employees may be absent at the same time. This prevents bottlenecks and makes refusals comprehensible.
Maintain a leave account
Every employee should be able to see at any time how many days they have left. A digital leave account avoids queries and mistakes.
Actively manage remaining leave
Remind employees in good time about outstanding leave days. Take the duty to inform under BAG case law seriously — and document it in writing.
Common mistakes in leave planning
No system, just email ping-pong
Leave requests by email or verbally — without a central overview, no one knows who is off and when. Double bookings and forgotten requests are inevitable.
Ignoring remaining leave
Anyone who fails to remind employees about outstanding leave days in good time risks the leave not lapsing under BAG case law — and piling up.
Approval without a staffing check
Leave is approved spontaneously, without checking whether minimum staffing is secured. This only becomes apparent when the schedule is created.
Leave freezes without justification
Blanket freezes for popular periods without a comprehensible operational justification can be challenged under employment law.
Leave management with Shiftdesk
Shiftdesk offers digital absence management that can support key steps of the leave process:
Digital request flow
Employees request leave directly in the app. Managers approve or refuse — with a single click.
Automatic leave account
Every employee sees their entitlement, days taken and remaining leave — transparent and up to date.
Calendar overview
Who is absent and when? The calendar view shows all vacations, sick days and special leave at a glance.
Leave freezes (Pro plan)
Freeze certain periods for leave requests. Employees are automatically notified of this when submitting a request.
Frequently asked questions about leave planning
What is the minimum number of vacation days employees are entitled to?
The Federal Leave Act (BUrlG) provides for at least 24 working days based on a 6-day week (§ 3 BUrlG). For a 5-day week, this corresponds to 20 working days. Many employment or collective agreements grant more — the statutory entitlement is the minimum.
Can the employer revoke leave that has already been approved?
Generally no. Under the prevailing case law, leave that has been bindingly approved cannot be unilaterally revoked — not even in the event of staff shortages. Exceptions apply only in absolute emergencies, which are interpreted very narrowly.
What happens to unused leave at the end of the year?
The BUrlG provides that leave should, in principle, be taken within the current calendar year. A carry-over to the following year is possible under certain conditions. Important: Under current Federal Labour Court (BAG) case law, the employer has a duty to inform employees about the forfeiture of remaining leave. The details depend on the individual case.
Can the employer order a company-wide shutdown?
Yes, under certain conditions. A company-wide shutdown (e.g. between Christmas and New Year) is permissible if there are urgent operational reasons and the scope is reasonable. As a rule, the employer may not designate the entire annual leave as a company-wide shutdown — case law assumes that employees should be able to dispose freely of the larger part of their leave.
Do parents of school-age children have priority in leave planning?
Not automatically — but social considerations do play a role when allocating leave. If several employees request leave at the same time and the business cannot release everyone, factors such as school-age children, the partner's vacation periods or health reasons must be factored into the decision.
Conclusion
Leave planning is more than an organisational matter — it touches employee satisfaction, operational planning certainty and employment-law obligations in equal measure. Those who set clear rules, plan early and use a transparent system avoid most conflicts.
If you want to organise leave management in your business digitally, try Shiftdesk free for 14 days — with request flow, leave account and calendar overview.
This article is for general information only and does not constitute legal advice. The presentation is based on the Federal Leave Act (BUrlG) in its current version and on published Federal Labour Court (BAG) case law (as of April 2026). Employment contracts, collective agreements and works agreements may contain differing rules. The presentation refers to German law. Different rules apply for Austria and Switzerland. For an individual assessment, please consult a lawyer specialising in employment law. Shiftdesk assumes no liability for the accuracy, completeness and timeliness of the content presented.
The Shiftdesk team writes about scheduling, time tracking and labor law in the DACH region — practical and easy to follow.
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