Article 31 - Fair and just working conditions
Key facts of the case:
Request for a preliminary ruling from the Oberster Gerichtshof. Reference for a preliminary ruling – Social policy – Directive 2003/88/EC – Protection of the safety and health of workers – Article 7(1) – Right to an allowance in lieu of paid annual leave not taken before the end of the employment relationship – Early termination of the employment relationship by the employee.
Outcome of the case:
On those grounds, the Court (Seventh Chamber) hereby rules:
1) This request for a preliminary ruling concerns the interpretation of Article 7(1) of Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time (OJ 2003 L 299, p. 9), and of Article 31 of the Charter of Fundamental Rights of the European Union (‘the Charter’).
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13) However, that court has doubts as to whether Article 10(2) of the Law on annual leave is compatible with Article 7 of Directive 2003/88, as interpreted by the Court of Justice, and with Article 31(2) of the Charter.
14) In those circumstances, the Oberster Gerichtshof (Supreme Court) decided to stay the proceedings and to refer the following questions to the Court of Justice for a preliminary ruling:
1. 'Is a provision of national law under which no allowance in lieu of paid annual leave is payable in respect of the current last working year, where the worker unilaterally terminates (“withdraws from”) the employment relationship early without cause, compatible with Article 31(2) of the [Charter] and Article 7 of [Directive 2003/88]?
2. If the answer to that question is in the negative:
Is it necessary to verify additionally if the worker was unable to use up his or her annual leave?
If so, what are the criteria for that verification?’
20) In the light of those circumstances, the referring court has doubts as to whether that provision is compatible with Article 7(2) of Directive 2003/88 and with Article 31(2) of the Charter.
23) By its first question, the referring court asks, in essence, whether Article 7 of Directive 2003/88, read in the light of Article 31(2) of the Charter, must be interpreted as precluding a provision of national law under which no allowance in lieu of paid annual leave not taken is payable in respect of the current last year of employment, where the worker unilaterally terminates the employment relationship early without cause.
25) Article 7(1) of Directive 2003/88 reflects and gives effect to the fundamental right to an annual period of paid leave, enshrined in Article 31(2) of the Charter (see, to that effect, judgment of 8 September 2020, Commission and Council v Carreras Sequeros and Others, C‑119/19 P and C‑126/19 P, EU:C:2020:676, paragraph 115).
35) In the light of the foregoing considerations, the answer to the first question is that Article 7 of Directive 2003/88, read in the light of Article 31(2) of the Charter, must be interpreted as precluding a provision of national law under which no allowance is payable in lieu of paid annual leave not taken in respect of the current and last year of employment, where the worker unilaterally terminates the employment relationship early and without cause.
