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Three ways to calculate how much annual leave your employees are entitled to

by , 03 April 2013
With the recent public holidays many employees took leave from work. And with the year barely half way, there's no doubt more of your employees will be filing in their leave requests. But do you know how to handle annual leave correctly? Read on to find out how much annual leave your employees are entitled to...

Handling annual leave isn't a simple process. As an employer, it's important you know what you and your employees are permitted to do in terms of annual leave.

This is crucial considering that the Basic Conditions of Employment Act (BCEA) prescribes what you should do as an employer when it comes to handling annual leave correctly.

So do you know how to calculate how much annual leave your employees are entitled to?

Use these tips to work out your employee's annual leave

'Your employees have a 12-month annual leave cycle. It starts when they begin employment or complete their prior leave cycle,' says the Labour Law for Managers Loose Leaf Service.

There are three ways to work out the amount of leave to give your employees in each leave cycle:

  1. 'Grant your employee at least 21 consecutive days of annual leave with full pay in each leave cycle. This equates to 15 working days and six weekend days. That's three weeks of annual leave. This method also applies if he works a six-day week,' explains the Loose Leaf.
  2. Grant one day's leave for every 17 days worked in the leave cycle.
  3. Grant one hour's leave for every 17 hours worked in the leave cycle.

'If a public holiday falls on a day your employee is on annual leave, you must grant your employee an additional day of annual leave,' advises the Labour Law for Managers Loose Leaf Service.

Remember, in terms of the BCEA, you can't pay out your employee instead of granting him annual leave. But this doesn't apply when the employment contract has been terminated. You must pay out accrued leave to your employee regardless of the reason for termination, not only in the case of resignation.

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