According to § 7 of the Federal Vacation Act (Bundesurlaubsgesetz) and the case law:
Once approved, the employer may not unilaterally cancel your leave
“Ein einmal genehmigter Urlaub bindet den Arbeitgeber grundsätzlich. Die zeitliche Festlegung des Urlaubs kann nur einvernehmlich rückgängig gemacht werden.” (Haufe.de News und Fachwissen)
This means: once your employer has approved your vacation dates, this agreement is binding on the employer, and they cannot cancel or withdraw it on their own.
Narrow exception – extreme emergency situations
The employer may, in cases of “exceptional operational circumstances where there is no way out other than cancelling the leave”, ask you to return from your vacation or to cancel/postpone the approved dates.
However, such cases are very rare and require a genuinely compelling emergency, such as:
a natural disaster,
a severe financial crisis threatening the company’s existence.
Courts interpret these emergency situations very strictly (anwalt.de).
The employee is not obliged to agree, even if costs are reimbursed
Even if the employer offers to reimburse your holiday expenses (travel bookings, accommodation, etc.), you cannot be forced to accept the cancellation of your leave — it is only possible on the basis of mutual agreement.
Summary
No, your employer is generally not entitled to refuse or cancel your vacation after it has been approved, except in very rare and extreme emergency situations.
Any attempt to cancel an approved vacation without such an emergency is legally invalid, unless you and your employer explicitly agree to the change in writing.
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