Change of Monetary Compensation payment for Unused Annual Leave

  • 2012-12-20
  • By Ecovis.Lt

On December 1, 2012 amendments to the Labor law came into force. With amended Labor Law Article 177, it is stated that if an employee was not granted annual leave for a period longer than one year, an allowance shall be paid for all unused annual leave, but for not more than three years’ of unused annual leave if the employee actually had a chance to use it and a collective agreement does not state differently. However, employees that have unused annual leave of more than three years till December 1, 2012, have the right to use it until December 1, 2015.

Moreover, in a case of termination of an employment contract until December 1, 2015, the monetary compensation payment for unused annual leave shall be paid for all unused annual leave (even if it is more than three years).