When the year-end holiday is over, many employers and employees are busy dealing with the issue of annual leave. Under the Employment Ordinance, is it feasible to use salary in lieu of employees taking annual leave? Many people will question whether part-time employees are also protected by the Employment Ordinance and can enjoy paid annual leave?
This article will summarize the common issues related to paid annual leave, and dismantle them one by one, hoping that employees can learn more about labor laws and protect their annual leave rights.
Is it feasible to use salary in lieu of employees taking annual leave?
Under the regulation of the Employment Ordinance, employers are not allowed to include any clauses in employment contracts that cause employees to waive all or part of their annual leave, including the payment of wages in lieu of annual leave.
However, if the employee agrees, the law still allows the employee to choose to accept all terms of the annual leave in lieu of money, but only for more than 10 days and the remaining part of the annual leave. For example, an employee who is eligible for 14 days of paid annual leave may decide to take 10 days of annual leave and accept the payment of wages equivalent to 4 days of paid annual leave in lieu.
Can part-time workers also enjoy paid annual leave?
Under the protection of Hong Kong’s labor law, Chapter 57 of the Employment Ordinance stipulates that whether it is a “temporary worker”, “part-time worker”, “alternative worker” or “long-term worker”, if they are continuously employed by the same employer for 4 weeks or more, a minimum of 18 hours of work per week; or paid annual leave after 12 months of employment.
Under this level of protection, regardless of the job title they are employed in, they are entitled to payment of wages and entitlement to statutory holidays, including rest days, sick leave, maternity leave, paternity leave, work-related sick leave, or with their consent. vacation paid annual leave and sickness allowance.
Can an employer deduct paid annual leave if the employer suddenly goes out of business?
The Employment Ordinance stipulates that once an employer decides to temporarily suspend all or part of the business due to operational problems, it can be regarded as “annual leave closure”, such as closure for renovations. Employers are also required to notify all employees in writing one month before the incident, and to display the notice of closure at the business premises. To avoid disputes, it is best to list the names and dates of the release of the employees.
If an employee is not eligible for the above-mentioned annual leave pay but is suspended from work due to temporary closure, the employee shall be entitled to annual leave and annual leave pay throughout the period of closure.
If the employee’s entitlement to annual leave is more than the period of suspension, the employer should allow the employee to take the excess paid annual leave from the first working day after the resumption of business.
If the employer has temporarily closed in whole or in part due to the annual leave, the common holiday year designated by the employer will not be changed due to the closure of the annual leave, because the annual leave granted should belong to the common holiday year immediately before the closure.
Can the days of paid annual leave be accumulated?
Generally, in the employment contract agreed by both parties, the accumulation mechanism of paid annual leave will be stipulated, which will vary depending on the length of service and the company system, and most of them are negotiable.
However, from the case of recovering paid annual leave, it is found that if the paid annual leave is not defined as “unaccumulated” in the employment contract, ordinary employees can recover the untaken annual leave when they leave the company. The retrospective period is limited to 7 years.
The above information is for reference only.