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Exemption explained simply

Definition

Leave of absence means that the employee is released from their duty to work but continues to receive their salary. In the case of revocable leave of absence, the employer may recall the employee at any time; holiday entitlements are not met in such cases. In the case of irrevocable leave of absence, the release is permanent – the employer can no longer recall the employee, and holiday entitlements may be settled in this way if this is expressly stated. Anyone who is irrevocably released from work and works elsewhere may, under certain circumstances, have this income deducted from their salary.

Dr Nils Bronhofer

Specialist solicitor in employment law
With over 15 years’ experience in employment law

Reading time:  minutes • Last updated: January 2026

Classification under employment law

In the case of irrevocable leave of absence, any remaining holiday entitlement is taken into account; you are permitted to work elsewhere. In the case of revocable leave of absence, the employer may recall you at any time; holiday entitlement is not taken into account.


Distinction from related terms

Leave of absence: A leave of absence is usually taken at the employee’s request and is often unpaid. Leave is generally ordered by the employer and often involves continued payment of remuneration. 

Holiday: A holiday is a statutory entitlement to rest. Although a period of leave may be counted towards holiday entitlement, it often serves other purposes, such as leave during the notice period.

Practical tip

Check carefully whether you have been placed on leave with or without the right to return. Only in the case of leave without the right to return may the employer deduct accrued leave.

In the case of a revocable leave of absence, the employer may require the employee to return to work at any time. An irrevocable leave of absence precludes this.

In the case of a revocable leave of absence, yes, as a return to work must be expected at any time. In the case of an irrevocable leave of absence, this is not usually the case.

This is only possible if the time off is expressly granted as annual leave. Otherwise, the entitlement to annual leave remains.

Generally speaking, yes, particularly in the case of leave of absence following redundancy.

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