Coming up, employees who have not taken their full annual leave before resigning or losing their job will be paid by the company for the unused leave days. If the employees have not taken their full annual leave for other reasons, the company will not pay for the unused leave days.
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From January 01, 2021, can the company pay for unused annual leave days? (illustrative photo)
To be specific, at Clause 3, Article 113 of the Labor Code 2019 (effective from January 01, 2021) stipulates:
Article 113. Annual Leave
…
- In the case of resignation, job loss, and the annual leave is not fully taken, the employer must pay wages for the untaken annual leave days.
Thus, from January 01, 2021, only in the case of “ resignation, job loss ”, and the annual leave days are not fully taken, the employee will be compensated by the company for the unused leave days.
In addition, based on this regulation, it can be understood that in cases where the employee continues working at the company but has not fully used their annual leave days, they will not be compensated by the company for the unused leave.
Currently, at Clause 1, Article 114 of the Labor Code 2012 stipulates:
Article 114. Payment for unused annual leave days
1. In case the employee resigns, loses their job, or for other reasons, and the annual leave is not fully taken, the payment for the untaken leave days must be made.
Under current law, besides the case of “resignation, job loss”, the employee is still compensated by the company for the unused leave days in the “other cases”.
This is one of the notable new points that have a significant impact on all employees working under agreements, being paid, and being managed, directed, and supervised by the employer. To ensure their rights, employees should fully use their annual leave days as stipulated and may agree with the employer to take annual leave in multiple instances or accumulate leave for up to 03 years at a time (Clause 4, Article 113 of the Labor Code 2019).
Note: From January 01, 2021, employees calculate their annual leave days according to the provisions of Article 113 and Article 114 of the Labor Code 2019.
Thu Ba
