When reaching the first half of December, one of the burning topics are the ins and outs of annual leave. Despite several years in the corporate world, countless employees are still unaware that annual leave is accrued.
Well, let us learn about annual leave entitlement.
- Is every employee eligible for annual leave?
According to the labour guide in South Africa, an employee that works less than 24 hours a month is not eligible to have annual leave. If you are a part-time employee and are wondering when annual leave applies to you, then a revisit of working hours is due.
- How is annual leave calculated?
Annual leave is accrued, which means that it increases over a period of time, for 17 hours worked, the annual leave accrues by one hour. In other words, yearly leave accrues at the rate of one day for every 17 days worked and 1,25 days every month. If you have your calculator at hand, you can quickly figure that every employee who works for 12 months is entitled to plus minus 15 days annual leave on full pay. This is calculated from the period of employment.
- Are public holidays and sick leave counted as working days?
Note that a day off is attributed for every 17 days an employee has worked or is entitled to be paid. In the former case, the company fully pays for public holidays, which counts when calculating annual leave. Should the employee be at home on sick leave, the days he is off will constitute paid sick leave; those days would also be classed as valid days when calculating annual leave.
- Other important notes.
Temporary employees and contractors are often exposed to a practice consisting of a deduction of their monthly wage to be put into a separate ‘leave account’ that employees access when they are on leave. This practice is unacceptable and illegal; employers can be found guilty of breaching the Basic Conditions of Employment Act.
There is much more to unpack in terms of annual leave. The labour law is often updated, and as an employer, it can be challenging to keep track and remain compliant. Simplis HR will revise your HR policies and make sure you are compliant with the latest labour laws.
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