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Publication date: 06.05.2024
active and purposeful military lawyer with more than 4 years of experience
A case for a personnel officer. Is it possible to replace an employee's annual leave with monetary compensation?
QUESTION
The employee wants to replace annual leave with cash compensation. Is this possible?
ANSWER:
Replacement of an employee's annual leave with monetary compensation is possible only in certain cases specified in Article 24 of the Law of Ukraine dated November 15, 1996 No. 504/96-VR "On Leave" (hereinafter - Law No. 504).
In particular, Article 24 of Law No. 504 states that in case of dismissal of an employee, he is paid monetary compensation for all unused days of annual leave, as well as additional leave for employees who have children or an adult child - a person with a disability since childhood of subgroup A of group I .
If an employee is dismissed during martial law, he is paid monetary compensation in accordance with Article 24 of Law No. 504 (Part 1 of Article 12 of Law of Ukraine No. 2136-IX dated March 15, 2022 "On the Organization of Labor Relations in Martial Law").
It should be noted that according to the Law of Ukraine dated July 1, 2022 No. 2352-IX "On Amendments to Certain Legislative Acts of Ukraine Regarding Optimization of Labor Relations", which entered into force on July 19, 2022, the third part of Article 24 of Law No. 504 was removed. The specified norm provided for the transfer of cash compensation for unused annual vacation days at his request to the account of the company to which the employee transferred in the event of an employee's transfer to work at another company. Currently, if an employee is dismissed on the basis of Clause 5 of Article 36 of the Labor Code, the employer pays him monetary compensation for unused annual leave.In the case of dismissal of an employee, payment of all sums due to him from the enterprise, including monetary compensation for unused vacation, is carried out on the day of dismissal. If the employee did not work on the day of dismissal, then the specified amounts must be paid no later than the next day after the dismissed employee submits a claim for settlement.
About the amounts accrued and paid to the employee upon dismissal, with a separate indication of each type of payment (basic and additional wages, incentive and compensatory payments, other payments to which the employee is entitled according to the terms of the employment contract and in accordance with the legislation, including . upon dismissal) the employer must notify the employee in writing on the day of their payment (part one of Article 116 of the Labor Code).
In the event of the death of an employee, monetary compensation for unused annual leave days, as well as additional leave for employees who have children or an adult child — a person with a childhood disability of the A subgroup of the I group that was not received during his lifetime, is paid to the family members of such the employee, and in their absence — it is part of the inheritance.
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In addition, Article 24 of Law No. 504 provides that, at the employee's request, part of the annual leave is replaced by monetary compensation. At the same time, the duration of the annual and additional vacations granted to the employee should not be less than 24 calendar days. That is, at the employee's request, after he has used 24 calendar days of annual leave for the working year for which leave is granted, he may be paid monetary compensation for the remaining days of unused annual leave for the same working year. On the basis of the relevant application of the employee, the order granting 24 calendar days of annual leave may also provide for the payment of monetary compensation for the remaining days of this leave, simultaneously with the payment of the granted days or immediately after their use (letter of the Ministry of Social Policy of Ukraine dated December 7, 2016 No. 731 /13/116-16).
Persons under the age of 18 are not allowed to replace all types of vacations with monetary compensation. Therefore, it is possible to replace an employee's annual vacation with monetary compensation only in certain cases specified in Article 24 of Law No. 504.
