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Do I have to pay my employees if they take annual leave this December?

by , 05 November 2014
Our labour experts have been inundated with annual leave questions from employers.

This shows that employers are dealing with a lot of leave requests as the year draws to a close. And it's quite positive that they want to know what the law says before they make decisions.

One of the many questions our experts received this week comes from an employer who wants to know whether or not he should pay his employees if they take annual leave this December.

Read on to find out the answer so you can comply with the Basic Conditions of Employment Act (BCEA).


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An ineffective leave policy could cripple your business from right under your nose
 
Did you know that not forcing your employees to take their annual leave could end up costing you anything up to R15,000 per employee?
 
That's right - employees that don't take leave could be costing you just as much as those that abuse it.
 
That's because any leave that's accrued into the following financial year will increase the leave bill for your company and therefore severely affect your organisation in the long run.
 
That's why I'm excited to introduce you to a resource that completely takes the stress and confusion out of managing annual leave in your company.
 
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Yes, you must pay your employees if they take annual leave this December

 
The Labour Law for Managers Loose Leaf Service explains that you must pay your employees leave pay equivalent to (at least) the remuneration they would have received if they had worked during the period of leave.
 
You must calculate annual leave pay at your employee's normal rate of remuneration immediately before the beginning of the annual leave period.
 
Please note that remuneration includes more than just your employee's salary. It includes other payments such as commissions, certain allowances and other amounts.
 
Remember, you must pay your employees their leave pay either before the beginning of the period of leave or by agreement, on the employees' usual pay day.
 
The bottom line: You can't pay your employees less just because they're taking annual leave. Make sure you pay your employees if they take annual leave this December so you can comply with the BCEA.
 
PS: For more information on annual leave, check out The Ultimate Guide to Annual Leave.
The guide will:
 
  • Help you create a water-tight leave policy,
  • Help you know your rights and responsibilities,
  • Give you step-by-step instructions on managing annual leave effectively and so much more.
 


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