Annual leave is one of the fundamental rights of employees, but also one of the more common sources of errors and disputes in companies. Correctly calculating leave entitlement, properly settling the cash equivalent and understanding proportional leave rules is essential knowledge for every employer.
Leave entitlement – 20 or 26 days
An employee is entitled to 20 days of leave per year if their total employment history (with all employers) is less than 10 years. When the total exceeds 10 years, the entitlement rises to 26 days. Periods of education also count towards the total (e.g. completing a university degree adds 8 years). All previous employment relationships count, regardless of any breaks between them.
Proportional leave
An employee hired during the calendar year acquires leave entitlement in proportion to the period of employment with that employer. The same rule applies to an employee whose employment ends during the year. Calculating proportional entitlement takes into account months (full and partial – always rounded up) and the target annual leave entitlement.
Leave on demand
An employee has the right to 4 days of leave on demand per calendar year – counted within the annual leave pool. The employee must notify the employer no later than on the day the leave begins. The employer may refuse leave on demand only in exceptional circumstances.
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Cash equivalent for unused leave
A cash equivalent is paid to an employee who has not used their leave by the date the employment relationship ends. It is calculated using the so-called leave equivalent coefficient, which the Central Statistical Office (GUS) announces each year. Errors in calculating the equivalent are one of the more common causes of disputes when employment ends.
Outstanding leave and planning
The employer is obliged to grant outstanding leave by 30 September of the following year. Outstanding leave accumulates if it is not granted on an ongoing basis – and the employee's claim for leave or equivalent expires after 3 years. Regular leave planning protects the company from a build-up of outstanding entitlement.
How I can help
As part of HR administration, I keep leave records for all employees, track outstanding leave and notify when deadlines are approaching. I also help calculate the cash equivalent when employment ends.