VW managers: Vacation entitlements no longer unlimited
The car manufacturer Volkswagen is adapting its vacation regulations for members of management to those of employees covered by collective agreements. Previously, the rule was that managers did not have to take their annual leave in the same year as other VW employees. They could also save it up indefinitely until a later date. This will end in 2024, as "Der Spiegel" first reported on Saturday. "With the new regulation for management, there is an alignment with the vacation regulation in the collective bargaining sector," a VW spokeswoman said in response to a dpa inquiry. It is also about standardizing processes in the personnel area.
Vacation is intended for recreation and to protect the health of all employees. Members of management have a responsibility as role models. By adapting the vacation regulations, this role model function is being fulfilled, it was said.
Specifically, according to the new guidelines, annual leave must now also be taken within the calendar year in management circles, including senior executives. "In the event of a carryover to the following year, the remaining vacation entitlement can be taken without application until March 31 of the following year at the latest," the spokesperson said. This regulation also applies to tariff employees.
Der Spiegel" had reported that individual VW executives had accumulated vacation entitlements of several months on the basis of the previous regulation. For VW, this unlimited transferability of remaining vacation days is a nuisance. This is because if remaining vacation is carried over to the next year, employers have to make provisions for it.
Europe's largest car manufacturer is currently working on a cost-cutting program worth billions. Group CEO Oliver Blume set new return targets for all of the Group's brands in the summer, which are to be achieved through savings and additional revenue opportunities. Staff cuts are also on the cards at VW.
The company, Volkswagen, is changing its vacation policies for managers, aligning them with collective agreement rules. Under the new regulation, managers must take their annual leave within the same year, and any unused vacation days can be carried over until March 31 of the following year. (The company is taking this step to standardize processes and fulfill the role model function of its management team, as vacation is essential for employee health and recovery.)
Managers at Volkswagen, including senior executives, will no longer have the option of indefinitely saving up their vacation days based on the old regulations. This change is expected to affect how the company handles unused vacation entitlements, as it aims to streamline processes and reduce costs as part of its ongoing cost-cutting program.
Source: www.dpa.com
