Holiday compensation [Urlaubsersatzleistung] (UEL)
§9 of BUAG regulates employee claims for holiday compensation:
The employee can claim holiday compensation to the extent of the entitlements already earned, if
- there is an outstanding annual holiday entitlement and
- the claim of holiday compensation immediately follows a terminated employment contract;
- no new employment contract is entered into at a company subject to BUAG.
Claims must be submitted to BUAK before or immediately after the end of the employment contract:
- The date of the postmark is considered the date of submission.
- Payments to claimants occur monthly and retroactively, i.e. on the 10th of the following month (only the leave days claimed in the previous month are paid).
- Insurance periods begin on the first day after the end of the preceding employment contract subject to BUAG.
With regard to both taxes and unemployment insurance, the settlement is treated analogously to compensation.
§ 10 of BUAG regulates employee claims for compensation:
Employees can claim compensation or parts of their entitlements (as of 1 January 2015) to the extent of the entitlements already earned, if
- they have not been bound for at least the past six months by any employment contract to which this federal law applies;
- they have been awarded a pension pursuant to the provisions of the General Social Security Act [Allgemeines Sozialversicherungsgesetz], Federal Law Gazette no. 189/1955, in its currently valid version. Please submit the pension notification!
In the case of the pension, this claim may be asserted immediately; in all other cases, a 6-month waiting period is required.
The claim is directed to BUAK.
The following points must be considered when the compensation or UEL (Urlaubsersatzleistung, holiday compensation) is paid:
When the compensation or UEL is paid, the eligible person earns insurance periods. The start of this insurance period for the compensation is the eighth day after the day of domiciliation (legal provision on this point is found in § 11(2) ASVG). The start of this insurance period for the holiday compensation is the first day after the end of the preceding employment contract subject to BUAG.
The duration of this insurance depends on the number of outstanding leave days. For this time, workers are both registered and deregistered at the Vienna Regional Health Insurance Fund in the case of compensation, and insurance periods are earned for health and retirement insurance.
In the case of UEL, workers are both registered and deregistered at the responsible insurer (linked to the most recently reported employment contract subject to BUAG).
When insurance periods are reported to the regional health insurance fund, the following provisions come into effect:
- Unemployment benefits and maternity benefits are not paid during the insurance period.
Loss of pension entitlements in the case of early retirement.
The compensation or UEL consists of equal parts: holiday benefits (ongoing payments) and a holiday allowance (special payment).
- Taxation is imposed even if the employee dies (legal provisions on this point are found in § 32 (2) Income Tax Act (EStG) 1988).
If you would like to submit your application for compensation or UEL in writing, we would ask you to submit the completed “Application for Holiday Pay” or “Application for Holiday Compensation” to BUAK including bank confirmation.
Bank confirmation is only required if the account information has never previously been submitted to BUAK or if the account has changed. Additional information about payments is available here.
Please attach a copy of your official photo ID.
Submission for leave within a valid employment contract:
Only the employing company can make a submission for leave to BUAK on behalf of the employee.
At the end or after the end of the valid employment contract:
If there are still open claims on the employee’s “leave account”, the employee can apply to BUAK for compensation or UEL. If claims are due to expire within the following five months, they are automatically paid as holiday compensation.