Romanian High Court clarifies rules on compensation for untaken annual leave

At a glance

• The Romanian High Court of Justice ruled on 9 March 2026 that the three‑year limitation period for claims seeking payment for untaken annual leave begins on the date the employment relationship ends.
• The Court held that compensation for annual leave carried over beyond the statutory 18‑month period is payable only if the employer failed to provide a genuine opportunity for the employee to take such leave.
• Employees are not entitled to compensation where they chose not to take leave despite having been given the opportunity.
• The decision clarifies the division between current leave entitlements and carried‑over leave, and emphasises the employer’s obligation to enable leave to be taken.
• Further implications may emerge once the Court publishes its written reasoning.

On 9 March 2026, the Romanian High Court of Justice issued a decision concerning compensation for unused annual leave.

The Court held that the three‑year statute of limitation for claims seeking payment for annual leave not taken during employment, where the right to the leave existed at the time of termination, starts to run from the date the employment ends.

The Court further clarified that compensation for annual leave carried over but not taken within the statutory 18‑month carry‑over period is payable only where the employer did not genuinely and effectively provide the employee with the opportunity to take that leave. Compensation is not owed where the employee voluntarily chose not to take leave despite being offered the possibility to do so.

Written reasons have not yet been published, so additional nuances or practical implications may follow once the full judgment becomes available.