Working on Public Holidays in Germany: Surcharges and Continued Pay

Why It Matters

Employers must align payroll and scheduling policies with the place‑of‑work rule to avoid costly violations, especially as remote and cross‑state work become commonplace in Germany’s labor market.

Key Takeaways

• TV‑L holiday surcharge tied to employee’s regular workplace, not deployment site
• Private‑sector surcharges and paid leave depend on work location, including home office
• Collective agreements can cover Easter and Whit Sundays even without statutory holidays
• Employers cannot contract out of EFZG continued pay; such clauses are void

Pulse Analysis

German labor courts have sharpened the line between statutory holidays and payroll obligations, a development that reverberates across both public and private sectors. The 2024 BAG ruling on the TV‑L collective agreement underscores that a worker’s regular place of employment determines holiday surcharge eligibility, regardless of temporary assignments in states without a holiday. This principle safeguards employees’ social environment and prevents employers from sidestepping surcharge payments during cross‑state deployments, reinforcing the predictability of collective bargaining outcomes.

For private‑sector firms, the place‑of‑work rule is even more granular. The ArbZG’s prohibition on work and the EFZG’s continued‑pay mandate apply to the exact location where labor is performed, be it a corporate office, a client site, or a home‑office desk. Consequently, payroll systems must dynamically assess the federal state of each workday, especially as remote‑work arrangements proliferate. Employers attempting to exclude home‑office or mobile workers from holiday pay through contractual clauses risk having those provisions invalidated by the BAG, exposing them to back‑pay liabilities and potential penalties.

Strategically, HR and compliance teams should audit collective agreements and employment contracts to ensure alignment with the latest jurisprudence. Explicitly defining "regular workplace" and "actual work location" in agreements can mitigate ambiguity. Moreover, integrating real‑time holiday calendars into time‑tracking software helps automate surcharge calculations, reducing manual errors. As Germany’s labor market continues to embrace flexible work models, staying ahead of these legal nuances will be essential for maintaining payroll accuracy and avoiding costly disputes.