Leave of Absence - Working-in-Germany
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Leave of Absence

Definition, Explanation Tips, Checklist

Definition, Explanation

Leave of absence is the being freed from the contracted duty to work without the income payment entitlement being ceased. Reasons for a leave of absence can be:

Agreed leave of absence due to

Forced leave of absence due to

An employee is entitled to leave of absence in the following cases

Unagreed leave of absence by the employer is only possible if further employment is not reasonably imposable to the employer. This is considered to be the case if the employee is suspected to have committed a crime or other severe violation of the employment contract, or there is no work to be done, or heavy arguments among colleagues is feared. Generally, the employee is entitled to be employed and paid as long as the employment is contracted to last.

When leave of absenceis mutually agreed, the employment contract persists. Exemption can be regulated in the employment contract or in collective or company agreements. The employer’s duty of care for the employee persists. In turn, the employer has to perform his duties of retrained competition and professional discretion.

Leave of absence can be paid or unpaid. Normally, the employer will keep paying the income until the cancellation period is over, if he is the one to initiate the exemption. If the exemption is a wish of the employee, it will normally be an unpaid one.

Leave of absence can be revocable or non-revocable. In a revocable exemption, the employee can be called back at any time, for the doing of any reasonably imposable work.

In case of an agreed, non-revocable exemption, the employment ends when the leave of absence starts – the employee will be unemployed until he contracts a new employment. This also ceases social insurance membership, that is statutory pension, health insurance, nursing care insurance and unemployment insurance. Correspondingly, contributions are no longer paid by the (former) employer. It begins a 12 weeks period of ‘interruption’ of the unemployment benefit, after which unemployment benefit will be paid again. However the duration of unemployment benefit allowed is a shortened one, of 9 months. In case of a revocable leave of absence, the employee’s duty to be social insured remains. The same for an unagreed exemption imposed by the employer. The interruption period exists only for agreed leave of absence.

Due vacation days that have not yet been taken are not mixed up with any leave of absence time. Common practice therefore is: The employer instructs vacation, and after that the exemption is declared. Alternatively, things con be regulated in employment contracts, or collective or company agreements. In a revocable exemption, it is not allowed to count it as taken vacation. The same goes for compensatory time off for over-hours.

If the employee uses a company car which is intended for occupational purposes only, it is to be returned when the leave of absence starts. If it is also for private use, this advantage is considered part of the income: If it is returned before end of the contract, the employee is entitled to compensation for the lost advantage.

Side-job regulations remain valid during exemption. Approval by the employer is possible, which would allow one to be paid two incomes. What is also possible is an agreement to count the temporary second income against the first one. In this case, the employee would continue to be paid the difference of the exempt job’s income and the second income.

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Last update: 05/22/2009

Copyright: Angela Bauer