Incapacity For Work During The Reduction Of Accrued Time Credits Through Release From Work

In a case decided by the Cologne Higher Labour Court (Landesarbeitsgericht Köln, LAG), an employee and the employer concluded a termination agreement (Aufhebungsvertrag) on 20 June 2023, effective as of 30 September 2023. At the time the agreement was signed, the employee had a credit balance of 31 days in his long-term working time account (Langzeitkonto). To offset this balance, he was to be released from work from 18 August 2023 to 29 September 2023. Accordingly, 31 days of release were entered for the employee in the time-recording system for the agreed period. From 4 August 2023 until beyond the end of the employment relationship on 30 September 2023, the employee was unfit for work due to illness. By letter from his lawyer, he demanded, among other things, payment of 31 days from the long-term working time account. The employer refused.

The LAG judges reached the following decision: The employee’s entitlement to paid release from work (Freistellung) arising from a credit balance in a long-term working-time account is fulfilled by granting that release even if the employee subsequently becomes unable to work due to illness during the release period. They further stated that, as a general rule, the employee bears the risk of actually being able to use the time off gained through release from work as working-time compensation in the way they intended (LAG Köln, judgment of 10 April 2025 – 3 SLa 629/24).