Feb 17, 2022

DYK – Payment Of Accumulated Leave On Termination Of Employment Is Not Always Compulsory

An employer has no obligation to pay an employee’s accumulated annual leave entitlement on termination of the employee’s contract of employment if said employee has not worked for longer than four months.

In terms of Section 40(c) of the BCEA (Basic Conditions of Employment Act), which deals with payment to an employee on termination of employment, the Act states that an employee that has been in employment for longer than four months is entitled to 1 day’s remuneration for every 17 days worked.

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