How to convert annual leave resignation?

Mondo Social Updated on 2024-02-02

When an employee leaves the company, the annual leave is calculated as follows:

1. Calculation formula:

The number of calendar days that have passed in the current year in the employer (365 days) The number of annual leave days that the employee should enjoy throughout the year - The number of annual leave days that have been arranged in the current year.

This means that the employee's unused annual leave before leaving the company will be converted based on the proportion of time they actually worked with the company during the year. Specific steps include:

a.Determine the number of days that have elapsed during the year as of the date of termination of the employee.

b.Divide this number of days by the total number of days in the year (usually 365 days) to arrive at the corresponding percentage of annual leave that an employee should have.

c.Multiply this percentage by the number of days of annual leave that the employee is entitled to in the current year.

d.Subtract the number of days of annual leave that have been arranged and taken by the employer.

2. Compensation standard:

For the number of days of unused annual leave that should be taken after conversion, the employer shall pay the employee a certain multiple of the employee's daily wage, which is usually calculated at 300% of the daily wage, but includes the part of the daily wage that has been paid during normal work.

It should be noted that if the remaining annual leave after conversion is less than one full day, no salary for unused annual leave is payable. At the same time, the regulations and internal policies of different regions may be different, please refer to the local labor law and relevant laws and regulations.

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