COURT OF CASSATION: REQUIREMENTS FOR A LAWFUL SALARY REDUCTION DURING HOLIDAYS
The Court of Cassation, Labor Section, with order No. 18529 of 8 June 2026 stated that the remuneration payable during annual leave may, within certain limits, lawfully exclude certain allowances that are normally paid.
This is without prejudice to the fact that the remuneration due during the holiday period should, as a general rule, ensure that the employee receives a level of income that is substantially comparable to that received during normal working periods.
However, according to the Court’s reasoning, particularly in the light of Article 7 of Directive 2003/88/EC and the European Court of Justice’s interpretation thereof, a reduction in pay during annual leave is lawful only to the extent that the difference in pay between the holiday period and the non-holiday period is so small as to preclude any deterrent effect on the right to take that annual leave.
