Understanding the Protection of Holiday Pay from Account Seizures

Holiday pay is a voluntary employer bonus that many employees receive. Are you allowed to use the money if your account is seized?

In the event of an existing account seizure, any amount that exceeds the seizure exemption amount will be paid out to the creditors. A so-called P account is required. The seizure protection account offers protection against account seizures for balances up to an amount of 1,410 euros. Any amounts of money received beyond this may be subject to seizure.

According to Section 850k Paragraph IV of the ZPO, you are entitled to your holiday pay. Despite there being a seizure on the account, the bank has to pay out the money to you. If your allowance is not enough, a one-off application is necessary. You submit this to the enforcement agency, not to your bank. The following documents must be submitted:

• Decision to seize an account or ongoing personal insolvency
• Certificate from your bank confirming the existence of a P account
• Evidence of allowances already set up
• Payslip showing payment of holiday pay
• Bank statements for the past three months

The individually set-up allowance applies in exceptional cases and only for the employer’s bonus payment. If there is a risk of early repayment of funds to creditors, apply for enforcement protection in the amount of the vacation pay. Submit this to the enforcement agency at the same time as the application to increase the exemption amount.

Maintenance claims entitle creditors to preferential seizure. The balance available on the account may be seized in full above the regular exemption amount. If you receive holiday pay from your employer, you have the option of protection. In contrast to classic seizure, a maximum of half of the holiday pay can be seized if there are maintenance debts. The creditor is entitled to 50 percent of the amount above the seizure exemption limit.

The Federal Court of Justice ruled in the past that vacation pay cannot be seized. This also applies if you are in personal insolvency proceedings. The reason for this is the earmarking of holiday pay. It is used to recover so that you can then return to full work performance.

Creditors have the option of seizing employment income directly from the employer. Before paying your salary, your employer checks whether earnings can be seized or seized. Holiday pay cannot be seized, so it will be paid to you without deductions when you pay your salary.