Question 78: Are Employers required to pay salaries for untaken annual leave days during Employees’ unpaid leave?

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Pursuant to the labour law, the time of unpaid leave that obtains Employers’ consent but accumulates for no more than one month will be considered the working time of any Employee to calculate the number of annual days off[1]. Accordingly, this period is construed to be the time of unpaid leave that Employers have previously agreed to give Employees. Therefore, when calculating the number of annual days off for Employees, Employers must add the time of unpaid leave to the actual working time of Employees to provide a basis for calculating the annual leave days.

In addition, it should be noted that the calculation of the number of annual leave days for an insufficient working year is as follows: annual leave days plus additional leave days based on seniority (if any) and then divided by 12 months, multiplied by the number of actual working months in order to get the entitled number of annual leave days; the calculation results should be rounded, if the decimal part is 0.5 or above, then it should be rounded up to 1 unit[2].

Thus, where Employees leaves their jobs, in addition to other payables in accordance with the law, Employers are required to pay salaries for their untaken annual leave days[3]. The annual leave days will be calculated on the actual working time plus the unpaid leave time agreed upon between Employees and Employers, which must not exceed one accumulative month.

[1]Article 6.4 Decree 45/2013/NĐ-CP dated 10/5/2013

[2]Article 7 Decree 45/2013/NĐ-CP dated 10/5/2013

[3]Article 114.1 Labor Code