How is annual leave calculated?
“How many leave days does this employee have left?” looks simple but, tracked by hand, is often answered wrong. Yet leave entitlement is clear and can be tracked correctly.
Annual paid leave is the paid rest time an employee earns after completing a year. Leave management is the job of correctly tracking each employee’s earned, used and remaining leave days. Wrong tracking creates both employee grievance and legal risk for the employer.
Leave durations by seniority
Under labour law, annual leave duration depends on length of service. General frame: fewer days for 1-5 years, gradually increasing days for over 5 and over 15 years of seniority. Certain age groups also have a higher minimum. Consult the regulation or your accountant for current durations.
Commonly confused points
- Leave entitlement doesn’t arise before one year; the first year’s accrual forms at the end of a year.
- Unused leave can be carried over under certain conditions; but accumulation is an employer liability.
- Leave pay must be paid for remaining leave when the contract ends.
- Weekly rest and public holidays don’t count against leave.
Digitizing leave tracking
In an HR program, each employee’s leave entitlement is computed automatically by seniority; used and remaining days appear live. Leave requests pass an approval flow, and approved leave reflects in payroll and the timesheet. So “how many days left?” is always answered correctly.
Leave is where employee satisfaction and legal compliance meet. Correct tracking neither wrongs the employee nor exposes the employer.
Calculate leave entitlement automatically
Entitlement by seniority, used and remaining days live. See the HR module in a demo.
Book a demo →