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What Happens to Unused Annual Leave?

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What Happens to Unused Annual Leave?


2022 is coming to the end,

Have you all taken your annual leave?

How many days are there for annual leave?

Can unused annual leave be arranged across years?

What if the employer does not arrange annual leave?



What about unused annual leave?


According to Article 5 of the "Regulations on Paid Annual Leave for Employees", there are two ways to deal with the unfinished annual leave of the employee.


  • Compensatory leave in the second year. Annual leave can be arranged collectively or in sections within a year and is generally not arranged across years. If it is unavoidable for the employer to arrange annual leave for employees across years due to the characteristics of production and work, it can arrange across one year.


  • Compensation wages. If the employer is truly not able to arrange annual leave for employees due to work needs. With the consent of the employees themselves, the annual leave could be canceled. For the number of days of annual leave that the employee should have taken but not, the employer shall pay 300% of the employee's daily wage income for annual leave wages.



What if the employer does not arrange annual leave?


If the employer does not apply the two measures above, employees may report to the labor security department in accordance with the law, and the personnel department or labor security department of the local people's government at or above the county level shall order corrections within a time limit.


For those who fail to make corrections within the time limit, in addition to ordering the employer to pay annual leave wages, the unit should also pay compensation to employees based on the number of annual leave wages.


Source: Shanghai Municipal Human Resources and Social Security Bureau



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