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12/08/2009 10:48:03
Re: Annual Leave

Hi, I've got some questions regarding annual leave need to be clarified.

Statement in appointment letter: Fourten working days for every 12 months of continuous service.

Statement in company rules and regulations: All confirmed staff shall be entitled to annual leave for each completed year of service or prorated accordingly for any incomplete year

My questions are:
1. If a staff join on May 2009, he can only take AL on May 2010?
2. If he resigned on Jan 2010, will she be paid for the AL earned from May09 till Dec09?
3. If I want to set a cut off date to standardize all staff's AL in January each year, what and how should I do? (since every staff joined in different day and different month)
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13/08/2009 00:36:05
1. Yes.
2. She has not earned any annual leave yet on Dec 09, as she has 4 more months to complete 12 months of continuous service.
3. Impossible, as staff may come and go anytime throughout the year.
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13/08/2009 10:24:10
Thank you CK for your prompt respond.

For answer number 2, it means that employee who resigns within the 1st 12 months he/she joined will not be able to offset his/her notice period using AL nor will he/she can get pay in lieu?
If the above is true, how about a staff who resigned after 18 months? To my understand this staff had earned 14 days for the 1st 12 months. So how about the last 6 months before he/she resigned?

For answer number 3, that means the HR has to track every single staff's leaves even if the company has a large number of staff, e.g 10000 staff?
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13/08/2009 11:19:39
The entitled AL for this year is actually earned from the last 12 months continuous service.

For Q2, in the case of staff resignation, some company don't accept the prorated AL to be offset with the remaining working days. But most companies do honour the prorated AL to be offset. But it is not likely to get pay in lieu.

For Q3, the most common way to set a cut of date to standardize all staff's AL from 1 Jan to 31 Dec is by calculating the prorated AL. For example: A staff joint on 1 July 2008 will be entitled for 7 days (out of 14 days) AL for 1 Jan to 31 Dec 2009. That way, you will be able to keep track of 10000 staff's AL easily.

Sorry for any confusion I made.
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14/08/2009 09:33:17
Thank you very much for your explanation. Noted.
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