Example: An employee was posted by his employer to a construction site in Germany until 30th June. Thereafter, the employee returned to his home country. As of 1st October, the worker can apply for payment in lieu of leave.
What happens next?
Once we have reviewed your application and you have met all requirements, we will pay out your money. This can take up to 12 weeks.
Amount of your entitlements
Please note that the leave pay is higher than the pay in lieu of leave. What does this mean for you? When you take paid leave, your employer pays you more leave pay than if you later apply to us for pay in lieu of leave. In the case of leave pay, you receive 14.25 % of your wage. In the case of payment in lieu of leave, you will receive 12.5 % of your wage.
Example: An employee is still entitled to a leave pay of 200 EUR in the current year. If he takes paid leave during his posting, his employer pays him this 200 EUR leave pay. If the employee does not take any more leave during his posting and later applies to us for payment in lieu of leave, we will pay him 175 EUR.
If you subsequently become a white-collar worker or trainee, we will make the payment as soon as you stop working as a commercial worker. Please send us a copy of your employment contract or training agreement.
The payment in lieu of leave is taxable and subject to social security contributions.
Are you working in Germany again and still have paid leave days left over?
If you have not submitted your application yet, you can take your paid leave with your current employer.