Publication date: 16.04.2024
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A case for a personnel officer. Vacation with subsequent dismissal in case of expiration of the employment contract
The procedure for dismissing employees and paying them compensation for unused vacation is regulated by the Code of Labor Laws of Ukraine (hereinafter referred to as the Labor Code of Ukraine) and the Law of Ukraine dated November 15, 1996 No. 504/96-VR "On Vacations" (hereinafter referred to as Law No. 504).
An employment contract can be:
Upon dismissal, the employee is paid monetary compensation for all unused days:
1) Annual leave;
2) Additional leave for employees who have children or an adult child - a person with a childhood disability of subgroup A and group;
3) Payment of monetary compensation to the employee for unused vacation days is an unconditional obligation of the employer (part one of Article 24 of Law No. 504), but, with the agreement of the parties to the employment contract, an employee who has not used the vacation due to him may, in the event of dismissal, go to leave, receive "vacation pay" and resign after it ends (Article 3 of Law 504).
4) In general, an employee hired under a fixed-term employment contract has the same rights to vacation as any other employee. The employee's right to use leave with subsequent dismissal is provided for in Article 3 of Law No. 504. This right does not depend on the type of employment contract the employee concluded: open-ended or fixed-term, but it depends on the type of leave the employee wishes to use before dismissal. These are vacations for which compensation is provided to the employee (Art.24 of Law No. 504):
- annual basic leave;
- annual additional vacations;
- additional leave for employees who have children, or an adult child — a person with a childhood disability of subgroup A of group I.
Important: not every employee can exercise the right to vacation followed by dismissal. If an employee is fired for violating labor discipline, he will be denied leave with subsequent dismissal.
Compensation or leave?
Leave with subsequent dismissal is granted only at the request of the employee. The employer has no right to insist, the employee independently chooses what is more acceptable for him — to receive unused annual leave (Article 3 of Law No. 504) or monetary compensation for it (Article 24 of Law No. 504).
There is no particular difference for the employer: to pay the employee compensation for unused vacation days or to grant vacation and pay "vacation pay." But for the employee, the second option has a number of advantages.
Article 3 of Law No. 504 stipulates that in the case of dismissal of an employee due to the expiration of the term of the employment contract, the unused part of the annual leave may be granted at his request even when the leave period fully or partially exceeds the term of the employment contract. The legislator did not make any other reservations.
Even when the employee asked the employer to grant him a vacation with subsequent dismissal on the last day of the fixed-term employment contract, it is possible to do so. The last day on which vacation can start is the last day of the fixed-term employment contract (the last day of work).At the same time, the employment contract continues until the end of the vacation.
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