Concept and significance of grace days in legal practice
Grace days represent an important concept within German civil law. They refer to the period between the expiry of a specific statutory or contractual deadline and the due date of a service or the performance of an act. Especially in the law of obligations, negotiable instruments law, and in connection with court dates and deadlines, grace days play a fundamental role. The purpose of grace days is to provide the parties with sufficient time for preparation and fulfillment of their obligations.
General aspects of the legal nature of grace days
Definition and historical classification
Grace days are therefore days that—calculated in addition to a given deadline—are granted to enable a party to perform a specific act. The term originally derives from negotiable instruments law. In legal practice, however, grace days have also become significant beyond this context and are applied to various deadlines and dates to ensure the protection of the rights of the parties involved.
Distinction from other types of deadlines
Unlike regular deadlines, grace days are not part of the original deadline itself, but rather constitute an additional period. Thus, they are appended to an already expired or expiring deadline.
Legal foundations and areas of application
Codifications and statutory foundations
The legal provisions on grace days are found mainly in the Bills of Exchange Act (Wechselgesetz, WG) and other provisions of the law of obligations. Relevant are, among others, Sections 43, 47, and 52 WG, as well as corresponding references in other statutes such as the Cheques Act (Scheckgesetz, ScheckG).
In the German Civil Code (BGB), there is no explicit general provision concerning grace days. There, the more general regulations regarding deadlines and dates apply, for example, in Sections 186 et seq. BGB.
Significance in negotiable instruments law
The primary application of grace days lies in negotiable instruments law. Here, this particularly concerns the periods for presentment and the time span remaining for submission of a bill for payment or for protest. Sections 43 and 47 WG stipulate, for example, that after the presentment period has expired, the debtor is granted a certain number of grace days to fulfill payment before the bill may be protested. The exact number of grace days depends on the statutory provisions in force and any divergent agreements.
Significance in the law of obligations
Grace days can also be applied in general law of obligations. When setting delivery or payment deadlines, especially in commercial transactions, the granting of grace days can be contractually agreed upon to facilitate practical processes and create legal certainty. This is often the case with the delivery of court documents or payment demands.
Judicial deadlines and grace days
In the context of service of court decisions and documents, the aspect of grace days may play a role in that, after the expiration of specified deadlines, an appropriate reaction period is granted. However, legal scholarship in these cases does not always explicitly refer to ‘grace days’ but rather uses terms such as ‘periods of grace’ or ‘waiting days.’
Effects of grace days on deadlines, maturity, and default
Commencement and calculation of grace days
Grace days generally begin only after the expiration of the relevant main deadline. They are calculated according to the rules of Section 187 BGB, whereby the day the deadline ends is generally not included. The number of grace days may be stipulated by law or contractually agreed upon.
Due date and performance delay
Case law considers grace days to constitute a period of grace for the debtor. Default regularly occurs only after the expiry of the grace days, provided the obligee has not performed by then. Until the end of this period, the creditor is obliged to accept any belated performance.
Legal consequences of disregarding grace days
If the creditor disregards grace days—for example, by initiating legal action before the grace days have expired—certain measures may be invalid, as the debtor is entitled to the uninterrupted benefit of these grace days.
Practical significance in case law and practice
Typical case scenarios in practice
- Negotiable instruments and cheque law: Debtors under bill obligations benefit from the additional time before incurring legal disadvantages such as bill protests or costs.
- Commercial transactions: Parties agree on grace days to avoid immediate consequences of delay following the expiration of deadlines and to balance interests.
- Contractual arrangements: In individual contracts, the institution of grace days can be used as a practical means of providing additional response time.
Limits of agreements
While grace days can generally be individually agreed upon, such agreements must not circumvent statutory deadline provisions or mandatory regulations. In particular, in public procurement or tendering law, grace days may be applied only within strict limits.
Summary and differentiation
Grace days are an established term in German civil law and concern primarily the protection of debtors in relation to deadlines, especially in negotiable instruments and cheque law. They represent an additional period granted after the end of a deadline, giving debtors a final opportunity for performance or preparation. Grace days are precisely regulated and subject to oversight by the courts. They contribute to balancing the interests of debtors and creditors and ensure legal peace and certainty in the handling of deadlines in legal transactions.
Further reading
- Palandt, German Civil Code, current edition, commentary on Sections 186 et seq. BGB
- K. Schmidt, Commercial Law, current edition
- MüKoBGB, Munich Commentary on the BGB, Law on Deadlines
- Bills of Exchange Act in practice, loose-leaf edition
This lexicon article provides a comprehensive overview of the term ‘grace days’, explains the legal foundations, and highlights the relevance for legal transactions.
Frequently asked questions
What statutory provisions apply to grace days under German labor law?
German labor law does not contain any explicit statutory provision addressing so-called ‘grace days’ verbatim. However, the term is often used in employment law contexts regarding non-working days, vacation requests, or periods during which employees wish to fulfill certain religious, cultural, or family obligations. The legal basis for dealing with such days is usually found in the Federal Leave Act (BUrlG), the Part-Time and Fixed-Term Employment Act (TzBfG), and provisions regulating working hours (Working Hours Act – ArbZG). Collective agreements or company arrangements may provide additional rules. In some cases, the General Equal Treatment Act (AGG) must also be considered, for example, if religion is an issue. Grace days are generally protected only to the extent corresponding rights exist by law or collective agreement. An enforceable entitlement to grace days therefore generally exists only if they are regulated by contract, collective agreement, or works agreement.
Do employees have a statutory right to grace days?
There is no explicit statutory right to grace days under German labor law. Entitlement to leave or time off on specific days, such as important religious festivals or social occasions, may arise indirectly from other statutory provisions, such as Sections 616 BGB (temporary inability to work), Section 3 BUrlG (recreational leave), or Section 45 SGB V (child sick days), provided the relevant requirements are met. The Working Hours Act also does not specifically provide for grace days. Such entitlement can, however, be created through collective agreements, works agreements, or individual employment contracts. If no such regulation exists, approval generally requires agreement and consent from the employer. In this regard, the employer’s right to direct and the works council’s co-determination rights must be observed, the latter being particularly relevant when introducing or establishing company-specific grace days.
What role does the General Equal Treatment Act (AGG) play in connection with grace days?
The General Equal Treatment Act (AGG) primarily plays a role in the context of grace days when disadvantages due to religion, belief, or cultural affiliation are at issue. The AGG obliges employers to take into account different religions or cultural needs of their employees when organizing working hours, at least insofar as operational reasons do not conflict. According to case law, it is conceivable, for example, to give preference to religious holidays in vacation planning or to consider flexible working hours. However, the AGG does not obligate the employer in principle to grant every individual request for a grace day. If operational concerns stand in the way, such a request may be lawfully rejected, provided there is no prohibited discrimination and the decision is objectively justified.
Can the employer refuse the granting of grace days?
The employer may generally refuse the granting of grace days if no corresponding legal basis exists, such as a collective agreement, works agreement, or individual employment contract. Even if an application is made, for example, for leave on a specific day out of respect for religious or cultural occasions, the employer has the right to refuse such leave for compelling operational reasons pursuant to Section 7 BUrlG. There is no general obligation to grant grace days; the interests of the business can therefore have priority. However, if discrimination on prohibited grounds (for example, religious) is demonstrated, this may constitute a violation of the AGG.
Are employees required to provide proof when applying for grace days?
The obligation to provide proof depends on the relevant legal basis. If grace days are expressly regulated under a collective agreement, works agreement, or employment contract, such regulations may also specify documentation requirements, for example, regarding religious affiliation or the reason for the requested grace day. If there is no such provision, it is at the employer’s discretion to request proof, insofar as the request is connected with religious or cultural obligations. Data protection law, especially the GDPR and BDSG provisions, must be observed, so any obligation for employees to provide information is subject to strict limits and sensitive data (such as religious beliefs) may only be processed with consent.
How is remuneration regulated when grace days are taken?
The question of remuneration depends on the type of grace day and the relevant legal basis. Generally, during statutory vacation or paid leave based on collective agreements or works agreements, employees are entitled to continued payment of wages in accordance with Section 11 BUrlG. For unpaid grace days that go beyond special forms of leave, for example, for religious or cultural occasions, entitlement to remuneration lapses for the period of release unless otherwise stipulated by contract or collective agreement. If a grace day is taken within the framework of an existing leave entitlement or by way of short-term paid leave pursuant to Section 616 BGB and the statutory requirements are met, the right to remuneration remains intact.
What co-determination rights does the works council have regarding the introduction or regulation of grace days?
The works council has co-determination rights under the Works Constitution Act (BetrVG), in particular pursuant to Section 87 BetrVG, in matters of company working time arrangements and in the introduction and structuring of special leaves such as grace days. If the introduction of grace days is being considered or planned in the company, the works council’s consent is required. This includes the structuring, eligibility, application procedure, and remuneration during such days. Should the employer seek to impose unilateral rules, the works council can obtain a binding regulation through the conciliation board. Without participation of the works council, such regulations would be subject to co-determination and therefore legally ineffective.
