13 April, 2018
Currently, the Labor Standards Act (the “LSA”) provides that employees who have worked for a company for less than one year accrue one day of paid leave per month within the first year of continuous employment. However, if an employee uses these paid leave days within the first year of employment, then the number of used paid leave days is offset against the number of paid annual leave days the employee is awarded in the second year of employment (i.e., 15 days for employees who have recorded 80 percent or better attendance in the first year of employment) (Article 60 (3) of the LSA). Therefore, as a result, employees only receive a maximum of 15 days of paid annual leave in total for the first two (2) years of employment.
The new revisions to the LSA are such that Article 60 (3) of the LSA has been deleted. Therefore, even where employees who have worked for less than one year use their paid leave days, there will be no offset against the paid annual leave days (i.e., 15 days) provided to the employees after one year of continuous service with the company. As a result, employees will be able to receive up to 26 days of paid annual leave during the first two (2) years of employment (up to 11 days in the first year of employment and 15 days in the second year of employment).
For further information, please contact:
Stephen Le Vesconte, Partner, Linklaters
stephen.le_vesconte@linklaters.com
