2016/14 Compensation in lieu of paid leave, if not time-barred, can be inherited by a deceased employee’s heirs (GE)
An employee who does not recover from illness during the calendar year in which he accrues paid leave (the ‘leave year’) and who continues to be incapable of taking that leave, loses the right to take it 15 months after the end of the leave year, i.e. on March 31 of the second calendar year following the leave year. If his employment terminates within that 15 month period, his entitlement to leave converts into a claim for payment in lieu, and as such, can be claimed by his heirs if he dies.
Bundesarbeitsgericht (Federal Labour Court), 2015-09-22