OD FLASH | An employer’s failure to comply with paid leave obligations does not necessarily give rise to compensable harm.

Supreme Court, Labor Chamber, 11 March 2025, No. 23-16.415

Pursuant to 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, as transposed into the Labor Code, it is the employer’s responsibility to take the necessary measures to ensure that the employee is effectively able to exercise their right to paid leave. In the event of a dispute, the employer must provide evidence that they have fulfilled their legal obligations in this respect.

In the present case, following her dismissal, an employee brought proceedings before the Labor Court, asserting various claims relating to the performance of her employment contract. In particular, she sought damages for the employer’s alleged breach of the duty to ensure health and safety, claiming she had been deprived of her right to paid leave for the year 2016, which had allegedly affected her health.

The employee argued that the mere fact of the employer’s failure to respect her right to paid leave was sufficient to entitle her to compensation.

However, in a judgment dated 25 August 2022, the Paris Court of Appeal dismissed her claim for damages on this ground, holding that she had not demonstrated the existence of harm resulting from the deprivation of her paid leave entitlement.

The Supreme Court upheld the decision, holding that the Court of Appeal had validly found that the employee had not established any damage resulting from the employer’s failure to allow her to take her paid leave. Indeed, paid leave entitlements are either carried over when the employment relationship continues or converted into a payment in lieu of termination of the employment contract. Therefore, any additional compensation may only be awarded if the employee proves a distinct harm arising from the employer’s breach.

This decision further refines the case law of the Supreme Court regarding compensation for harm arising from breaches of rights conferred on employees by EU legislation.