How To Calculate Compensation For Unused Leave Upon Dismissal

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How To Calculate Compensation For Unused Leave Upon Dismissal
How To Calculate Compensation For Unused Leave Upon Dismissal

Video: How To Calculate Compensation For Unused Leave Upon Dismissal

Video: How To Calculate Compensation For Unused Leave Upon Dismissal
Video: HOW TO: Calculating Annual Leave Entitlements 2024, November
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The Labor Code of the Russian Federation provides for the mandatory provision of employees with an annual paid leave in the amount of 28 calendar days, unless otherwise contradicted by other federal laws. In addition, some categories of employees are entitled to additional or extended leave (for length of service, harmful working conditions, irregular working hours, etc.). There are times when an employee cannot use his vacation or only partially uses it. Then, according to the law, he has the right to replace part of the annual paid vacation with monetary compensation.

How to calculate compensation for unused leave upon dismissal
How to calculate compensation for unused leave upon dismissal

Instructions

Step 1

You can receive monetary compensation for a part of the unused vacation only if it is at least 28 calendar days. But, if the employee did not use the vacation in full over the past year, wants to take annual leave for the current year, and replace part of the previous one with compensation, then the employer has the right to refuse him. Such a replacement is not possible.

Step 2

Compensation for unused vacation is paid only on the basis of a written application from the employee.

Step 3

The employer has the right to refuse to pay compensation even for a part of the leave that exceeds 28 calendar days to pregnant women, employees under the age of eighteen and employees working in heavy work and with harmful working conditions.

Step 4

Upon dismissal of an employee, the employer is obliged to pay him compensation for all unused vacations. If an employee has worked for at least 11 months, then he is entitled to compensation for 28 calendar days. Otherwise, compensation is paid based on the hours worked. That is, for each month of work worked, 2, 33 calendar days of vacation are allowed (28 calendar days are divided by 12 months). If vacation of a different duration is allowed, then the number of days is divided by 12 months.

Step 5

To determine the number of vacation days for which an employee is entitled to receive compensation, it is necessary to multiply 2, 33 (or another number) by the number of months worked. For example, if an employee has worked for 3 months and is not entitled to additional vacations, then he will be compensated for 7 days (2, 33 * 3). However, it happens that an employee at the time of dismissal did not work for the full number of days, for example, 2 months and 15 days, then the latter are rounded up to a whole month, and if less than 15 days, then rounding is not performed.

Step 6

Compensation is calculated based on the employee's average daily earnings, which includes: salary, various kinds of allowances and payments, bonuses, etc. Payments that are not included in the calculation of the average daily earnings when calculating compensation: the amount of sick leave, maternity allowance, study leave, business travel, vacation at their own expense.

Step 7

To calculate the amount of compensation for unused vacation when an employee is dismissed, it is necessary to multiply the amount of the average daily earnings by the number of calendar days of vacation.

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