The previous legislation dates back to legislative decree no. 95 of 2012, which, in article 5, paragraph 8, had introduced the prohibition on monetizing holidays, rest periods and permits not used by public administration staff. The objective was to contain state spending and discourage the accumulation of days to be paid at the end of the service. The prohibition also applied on the occasion of retirement, resignation, dismissal or transfer to another administration. Consequently, those who were unable to take advantage of their holidays due to service requirements risked losing the remaining days without any financial compensation. In fact, the discipline did not adequately distinguish between those who voluntarily renounced rest and those who could not use it for reasons beyond their control.
For further information: State holidays, here's what changes with the PA decree for days not taken
The right to paid holidays is protected by Article 7 of Directive 2003/88/EC, which guarantees every worker at least four weeks of rest per year. European legislation also establishes that a financial allowance can replace unused holidays only when the employment relationship ends. The Court of Justice of the European Union intervened on this principle, which with the ruling of 18 January 2024 relating to the Municipality of Copertino (case C-218/22) reiterated the incompatibility of an absolute ban on monetization with community guarantees. The loss of the right to compensation, in fact, cannot be automatic nor derive solely from the employee's decision to leave the service.
For further information: Pa decree, ok from the Chamber: from public employee holidays to school, the news
The issue had returned to the center of attention also following the ARES case, started in July 2024, in which the European Commission had asked Italy for clarification on the compatibility of the national legislation with community rules. The legislator therefore intervened to adapt Italian rules to European guidelines, redefining the responsibilities of public administrations and strengthening protections for workers who have not been able to use accrued holidays.
The new regulations generally recognize the right to compensation for holidays remaining upon termination of the employment relationship. The principle applies regardless of the reason that determines the end of service, including retirement, resignation and other causes of termination. Payment, however, is not automatic in all circumstances. Compensation can be excluded when the administration demonstrates that the employee consciously chose not to use the rest days available to him, despite having had the concrete possibility to do so. For the right to cease, it is therefore not sufficient to establish that the holidays have not been taken. The Public Administration must prove that it has formally invited the worker to use it within an adequate period and that it has promptly informed him of the consequences of his possible inaction. In particular, the employee must have been warned that failure to use it could result in the loss of both the holidays and the related financial compensation.
One of the central aspects of the reform concerns the burden of proof, which falls on the administration. The organization must demonstrate not only that it has communicated to the employee the need to use the holidays, but also that it has guaranteed him organizational conditions that effectively allow its use. If the worker was unable to be absent due to service requirements or organizational obstacles beyond his control, the mere existence of a formal invitation is not sufficient to exclude payment. In the absence of evidence certifying compliance with the obligations envisaged, the replacement indemnity must be recognized upon termination of the relationship, for the periods to which the new regulations apply.
The principle had already emerged in national jurisprudence. With ordinance no. 13691 of 22 May 2025, the Court of Cassation reiterated that the loss of the right to holidays and the corresponding compensation requires proof, on the part of the employer, of having invited the employee to take advantage of the rest and of having warned him of the consequences of failure to take advantage of it. An orientation consistent with the ruling of the Court of Justice of the European Union on the Municipality of Copertino case. The rule also identifies the manager or service manager, according to the organization of the organisation, as the person responsible for authorizing or rejecting leave requests. This figure is responsible for ensuring correct management of communications and procedures, also to prevent disputes and possible disputes relating to tax damages.
Law 5 October 2026, n. 174, was definitively approved by Parliament on 30 September, published in the Official Journal of 6 October and entered into force, due to the changes introduced during the conversion, the following day, 7 October 2026. Article 1, paragraph 2, of legislative decree no. 144 of 2026, in the converted text, establishes that the new regulations apply to holidays accrued after that date. There is therefore no automatic recognition of the allowance according to the new rules for all days accumulated in previous years. This time limit, however, does not absolutely exclude the possibility of claiming compensation for previous holidays. Any requests must be assessed on the basis of the legislation applicable to the periods concerned and the principles established by national and European jurisprudence, which has repeatedly contested the indiscriminate application of the monetization ban. For those who have already terminated their service or intend to assert their rights, it therefore becomes important to reconstruct the individual situation, checking how many holidays have remained unused and for what reasons it has not been possible to use them. It is also necessary to ascertain whether the administration has respected the information obligations and has actually allowed the employee to be absent.
For further information: Asmel 2026 competition, application deadline extended to 15 October: requirements and what to know
