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Using annual leave from the previous year in the current year

July 1, 2024
July 22, 2024

As we approach June 30th, there is often uncertainty for both employers and employees regarding how to handle unused annual leave days from the previous year.

Article 73, paragraph 2 of the Labor Law stipulates that employees must use their annual leave no later than June 30th of the following year.

Article 68, paragraph 4 of the Law states that employees cannot waive their right to annual leave, nor can this right be denied or replaced with monetary compensation, except in cases of termination of employment in accordance with this law. Therefore, if an employee, for any reason, does not want to use their annual leave, the employer cannot provide compensation for unused days.

Does this mean that in such cases, employees simply lose their right to unused days?

The answer is negative, as Article 75, paragraph 1 of the Law specifies that it is the employer who decides on the use of annual leave, after consulting with the employee. Even if the employee does not wish to use their annual leave, the employer can issue a decision regarding the employee’s annual leave before 30th June 2024, which must be provided at least 15 days before the designated start date of the annual leave.

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