Here we give the most commoncases of compensation of employees for leave. We will tell you how to calculate compensation for leave on dismissal, as well as compensation for unused vacation.
How to calculate unused vacation compensation
For starters, one important point. Remember that the employee has the right to leave, regardless of the period that he worked for the company. Even if a person has worked less than six months and then resigned from the enterprise, he is required to calculate compensation for unused vacation, and strictly in proportion to the time that he worked.
Further: compensation is paid only in lieu of vacation days exceeding 28 calendar days, or upon dismissal. Compensation of the same leave, which is less than 28 calendar days or equal to it, is not provided by the legislation.
Compensation of the unused additionalleave is permitted in most cases. Nevertheless, there are categories of citizens to whom such compensation is paid only upon dismissal. These are underage citizens, pregnant women, as well as persons working in hazardous or harmful conditions of production. If workers belonging to these categories do not resign from work, then they must go on holiday.
Now let's talk directly about how to calculate an unused vacation.
What is the compensation for the holiday
Compensation for additional leave (more than 28calendar days), as well as when dismissed, is calculated on the basis of the average earnings of the employee. Here it is necessary to add that the average earnings is calculated taking into account the Provision of Government Decision No. 922 of December 24, 2007.
To calculate the amount of compensation to be paid, it is necessary to determine successively the following:
- The settlement period, which is taken to determine the average earnings.
- The amount of payments that are taken into account when calculating the average earnings.
- The average daily salary of an employee.
- Number of days of unused vacation for which the employee is entitled to compensation.
The duration of the billing period inThe overwhelming majority of cases are standard and amount to 12 months (calendar) preceding the month in which compensation is paid (either on application for compensation or on dismissal).
To the calculated payments in calculating the averageearnings include salaries, bonuses and bonuses, as well as various percentage bonuses and rates charged for work in special working conditions.
The average daily wage is calculated from the totalthe amount of payments, which is first divided by 12 (by the number of months), and then by another 29.4 is the average monthly number of calendar days. Such a calculation is necessary if the employee needs to compensate for unused vacation days that exceeds 28 days, or when the employee is laid off.