Monetary Compensation for Unused Leave

Responding to Mr. Hoi's question as follows:

According to Section 1, Article 13 of the Public Employee Law 2010, public employees are entitled to annual leave in accordance with the labor law provisions. If, due to work requirements, a public employee does not use or fully use their annual leave days, they will be compensated with a sum of money for the unused leave days.

Section 1, Article 111 and Article 112 of the Labor Code 2012 stipulates that an employee who has worked for an employer for at least 12 months is entitled to annual leave with full pay, according to their labor contract, of 12 days for those working in normal conditions. For every additional 5 years working for an employer, the employee's annual leave will increase by 1 day.

Based on Point c, Clause 2, Article 2; Point b, Clause 2.1, Article 4; and Point b, Clause 2, Article 5 of Circular 141/2011/TT-BTC dated October 20, 2011, of the Ministry of Finance, officials and public employees working at agencies and units that are eligible for annual leave policies must ensure that the agency or unit has the responsibility to arrange work and time for officials and public employees to take leave according to the prescribed policies.

In cases where work demands prevent the agency or unit from arranging for the official public employee to take leave or to take the full number of leave days as prescribed, the agency or unit shall decide on compensating officials and public employees for the unused annual leave days.

Annually, based on the budget availability and the total number of unused annual leave days of officials and public employees, the head of the agency or unit will decide on support compensation for officials who have not taken annual leave or have not taken enough annual leave days.

The support compensation level is stipulated in the internal expenditure regulations of the agency or unit but must not exceed the overtime pay rate on Saturdays and Sundays as per the current regulations.

The payment will be made once a year and will be finalized into the annual budget cycle.

Leave from any year can only be compensated within that year. If, due to work, the head of the agency or unit allows postponing the leave to the following year, the leave compensation will be paid, but only within the financial rectification period until the end of January 31 of the following year.

According to the Ministry of Labor, War Invalids, and Social Affairs

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