Legal annual leave rights are computed using a reference year running from June 1, N to May 31, N+1. During that period the employee is entitled to 2,08 days per month, meaning he will get 25 days vacation for 1 full year worked. (The month is considered as being 4 consecutive weeks of work).
French labour law states that employees can only apply for vacation on vacation days already vested, i.e., at the end at the reference year.
The rule is that the days that are not taken at the end of that period are normally considered as lost. They are not carried over one year to another. However, the employer can allow the remaining days to be carried forward fully or partly. It is the employer’s choice. The employer can also decide that they are carried over up to a certain date.
At last, the fact of indicating a number paid vacation on the pay slip, i.e. the 25 legal days or even more (25 days + 10 remaining days on last period for example), is a sufficient proof for the court that the employer does recognize he owes them to the employee (Social court: Cass. Soc. 30/03/1999).
HOLIDAY PAY INDEMNITY
Article L223-11 of French Labour Code states: The holiday pay indemnity is equal to 1/10 of the wages earned by the employee during the paid holiday reference year. However, this indemnity can not be less than the salary the employee would have earned if he had worked during his holiday period.
Therefore, law provides 2 types of calculations: 1) rule of 1/10 2) rule called « maintain of salary »
Law fixes a comparison between 2 methods and the systematic choice of the most favourable one for the employee.
1) Rule of 1/10
Reference year for paid holidays runs from June 1, N-1 to May 31, N = the earnings to be retained are those earned during that period.
To be considered on the calculation basis: - gross salary - fringe benefits - commissions - bonuses compensating hours of work but not compensating exceptional risks
Not to be taken into account: - professional expenses - bonuses based on annual company results - bonuses recover in annual activity (13th month payments for example) - substitutable earnings such as sick pay from the social security - percentage on annual turnover
2) Maintain of salary rule
As stated above, the holiday pay indemnity can not be less than what the employee would have earned if he had worked during his holiday.
