Holiday compensation

Holiday compensation § 9 BUAG ff.
Holiday compensation is the compensation provided for outstanding leave entitlement which remains unused at the end of the employment contract. The amount of the holiday compensation payment corresponds to that of the holiday remuneration entitlement.

With a claim for holiday compensation pursuant to BUAG, construction workers should be able to transition directly from their professional lives to a pension, or to claim an interim supplement. In this case, all entitlements earned are claimed up to the start of the pension / interim supplement payments.

With regard to social security law, the insurance period that results from this holiday compensation payment begins on the first day after the end of the employment contract pursuant to BUAG.

The employee must submit their claim to BUAK before or immediately after the end of the employment contract.

Two holiday compensation alternatives
If the employee still has an open leave entitlement at the end of the employment contract, the employee is entitled to holiday compensation as a settlement for their unused leave.

I.   Holiday compensation via employee application
(§ 9 (2) BUAG)

The holiday compensation is to be paid by the Construction Workers’ Annual Leave and Severance Pay Fund [Bauarbeiter-Urlaubs- und Abfertigungskasse] (BUAK) upon application by the employee. If the employee does not claim holiday compensation (UEL) via a written application, their leave entitlements remain in force (the expiry deadlines remain valid).

II.  Automatic holiday compensation after end of the employment contract
(§ 9 (3) BUAG)

As a precondition for automatic holiday compensation, the employee must have open leave entitlements which would expire within the next five months after the end of the employment contract.

Payment of holiday compensation (whether automatic or by application) immediately following the last employment contract subject to BUAG is only possible if, after their departure, the employee is not bound by an employment contract that is subject to BUAG.

Employee departures must be reported by the company immediately so that BUAK can report the information to the social insurance association [Hauptverband] in a timely manner. The employee is responsible for applying for holiday compensation.

In the attached documents, you will find frequently asked questions (FAQs) about holiday compensation as well as the application for holiday compensation.



BUAK - Bauarbeiter-Urlaubs- und Abfertigungskasse
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