How To Calculate Unused Leave Upon Dismissal

Table of contents:

How To Calculate Unused Leave Upon Dismissal
How To Calculate Unused Leave Upon Dismissal

Video: How To Calculate Unused Leave Upon Dismissal

Video: How To Calculate Unused Leave Upon Dismissal
Video: Xero Payroll - Employee termination, annual leave payout - setting final pay in xero 2024, May
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Upon dismissal, the annual paid unused during work can be obtained in the form of compensation. It is quite simple to calculate it, for this you will need: the date of employment, the date of dismissal and the total number of days of vacation received for the entire period of work (or for the last year). It is worth noting that usually HR employees do not count vacation days for the full period of work, since the employee, by law, must use his annual vacation during the calendar year.

How to calculate unused leave upon dismissal
How to calculate unused leave upon dismissal

Instructions

Step 1

The basis for calculating a is not the calendar year, but the year from the date of employment. Therefore, in order to calculate the period for which the vacation is due, you need to add a year to the date of the employment. For example, the date of employment is April 18, 2010. The calculated vacation period will be from April 18, 2010 to April 17, 2011. For each full month in the calculated period, 2,33 days of vacation are assumed.

Step 2

If the year has been fully worked, but the vacation has not been taken, the employee is entitled to compensation for the unused vacation in the amount of payment for 28 calendar days.

Step 3

If an employee leaves without completing a full year, then for each month worked he is entitled to the same 2.33 days. For example, the date of dismissal is 15.02.2011. For the period from 18.04.2010. until 15.02.2011 9 full months and 28 days have passed. 2, 33x10 = 23, 3 days. If less than 15 days have been worked in an incomplete month, then it is not accepted for calculation.

Step 4

The number of days due to leave is multiplied by the average wage. Thus, the amount of compensation for unused vacation is obtained.

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