Note that your employees have a 12-month annual leave cycle. It starts when they start working for you or finish their previous leave cycle.
To avoid issues with the DoL, you must make sure your leave policy is crystal clear.
Here are the three ways to work out how much leave to give your employees in each leave cycle:
1. Give your employee at least 21 consecutive days of annual leave with full pay in each leave cycle. This equals to 15 working and six weekend days. In other words, three weeks of annual leave. This method also applies if he works a six-day week.
2. Give one day's leave for every 17 days he works in the leave cycle.
3. One hour's leave for every 17 hours he works in the leave cycle.
Note that you must reach an agreement with your employee to work out his leave in the last two instances.
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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.
For example, if your employee only works three days a week, you must give him one day's leave for every 17 days he works.
However, it's mandatory that you have an agreement with your employee to do this. If a public holiday falls on a day your employee's on annual leave and he would normally work, you mustn't count this as a day's annual leave.
Keep in mind that you aren't allowed to pay an employee out instead of giving him annual leave!
Section 20(11) of the BCEA
states that you can't pay out your employee in lieu of him taking annual leave but you should know that this doesn't apply when the employment contract terminates.
In such case, you must pay the employee accrued leave regardless of the reason for termination. Not only when he resigns.
Also, keep in mind that your employee can't take annual leave during his notice period!
Employees can't take annual leave during any period of notice of termination of employment. You must pay them out for their accrued leave on termination!