Understanding leave accrual during unpaid leave

Understanding leave accrual during unpaid leave

Human Resources

Author: Prianka Naidoo

As we all know, employees accumulate days off each month, a process formally known as leave accrual. According to the Basic Conditions of Employment Act (BCEA) in South Africa, an employee is required to work 17 days in order to earn a minimum of one day of leave. This ensures employees receive time off proportionate to the amount of time they have worked. However, it is important to note that the number of leave days an employee accrues can vary depending on their company’s specific policies and the length of their service. Some companies may offer more generous leave accrual rates as part of their employment benefits, rewarding long-term employees with additional leave days. Therefore, while the BCEA sets the baseline for leave accrual, individual employment contracts and company policies play a significant role in determining the exact number of days off an employee can accumulate. Understanding these details is essential for employees to effectively manage their leave and ensure they receive the full benefits they are entitled to.

Despite this accrual system, there are situations where employees may find themselves without sufficient leave days. This can happen if they have exhausted their accrued leave or if they are new to the company and have not yet accumulated any leave days. In such cases, employees would need to take unpaid leave when they require time off.

A common question that arises is what happens to leave accrual during periods of unpaid leave. It is important to understand that while being on unpaid leave, employees do not accrue additional leave days. This is because unpaid leave is not considered as working time, therefore there is no contribution towards leave accrual during these periods. Essentially, since the employee is not engaged in work during unpaid leave, they are not earning additional leave days.

Understanding this aspect of leave accrual is essential for employees to manage their leave effectively and to be aware of the implications of taking unpaid leave. It ensures employees can plan their leave days wisely and understand the impact of their choices on their overall leave balance.

Ensure your business stays compliant and efficiently manages leave accrual by partnering with us. For expert HR support and guidance, contact us.