Question: If an employee has 14 days annual leave this year, but he terminated in this May with 9 days unused annual leave.
Does employer pay for the unused annual leave and how to calculate it?
Is the formula correct?
Monthly salary/26*unused days.
Answer:
In case the Employee legally terminate the employment contract, he/she shall be entitled to cash payment for unused annual leave up to the date of termination of employment contract.
If he/she has worked for the company for full one year, he/she shall be entitled to 12 days of annual leave. Annual leave shall increase 1 day every 5 years working for the company.
If the employee has not yet worked for the company for full year, his/her annual leave shall be accounted on pro-rated basis according to actual working period of such employee for the company.
For example:
Employee A joined the Company from 2 January 2011 and worked until 2 May 2017. Then, until the year of 2017, she is entitled annual leave of 15 days. Given that, she has not taken any her annual leave in the year of 2017, then number of her unused annual leave shall be as follows:
(15 days/12 months) x 4 months = 5 days
She shall entitled to a cash payment for 5 days unused annual leave as follows:
Her daily wage x 5 days.
