The Labor Code 2019 has inherited the spirit of the Labor Code 2012 and introduced several changes to better align with labor relations. One notable change for employees is the payment for unused annual leave days.
Article table of contents
Annual Leave (also known as Vacation Leave)
Annual leave (also known as vacation leave) is a period stipulated by law during which employees can take paid leave according to their labor contracts. This allows employees to restore their labor capacity after a long period of work. Any official employee working under a labor contract is entitled to enjoy this policy.
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Annual Leave – Things to note from 2021 (illustrative photo)
According to existing labor laws, Clause 1 Article 114 of the 2012 Labor Code states: "Employees who have not taken annual leave or have not taken all their annual leave days for various reasons shall be compensated in cash for the untaken leave days." Employees have the right to forego annual leave and convert the leave days into an equivalent amount of money.
However, pursuant to Clause 3 Article 113 of the 2019 Labor Code: "In cases of resignation or job loss, employees who have not taken annual leave or have not taken all their annual leave days shall be compensated in cash for the untaken leave days."
The new code does not address the situation where employees, who have not taken all their annual leave days, continue working at the company. Thus, it is understood that employees continuing to work at the company without taking all their annual leave days will not be compensated in cash for the untaken leave days.
Therefore, from January 1, 2021, if employees have not taken all their annual leave days due to resignation or job loss, the company will compensate them in cash for the untaken leave days. In cases where employees have not taken all their annual leave days for other reasons, the company will not compensate for the untaken leave days. Hence, starting from 2021, employees need to be aware of the regulations regarding annual leave to ensure their legitimate rights and interests are not affected, as follows:
+ How many annual leave days are stipulated for them according to Article 113 of the 2019 Labor Code? Plan to use the leave days and inform the employer. Employees can agree with the employer to take annual leave in multiple periods or accumulate leave up to a maximum of 03 years at a time.
+ When taking annual leave, if employees use road, rail, or waterway transportation and the total travel time for the round trip exceeds 02 days, from the 3rd travel day onwards, this extra travel time will be added to the annual leave days and will only be counted for one leave period in a year.
+ When taking annual leave and the salary payment date has not yet arrived, employees are entitled to an advance on their salary according to Clause 3 Article 101 of the 2019 Labor Code.
Long Binh
