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Is vacation compensation provided to an employee who has worked less than a year? – Rules and amounts
Is vacation compensation provided to an employee who has worked less than a year? – Rules and amounts
In some cases, newly hired employees have to leave their jobs within a short period of time for various reasons. If an employment contract is terminated within a short period, such as 1–2 months, the employee must be given the final settlement. But what payments are made to an employee who leaves the job before completing 6 months or 1 year at a new workplace? In this case, is compensation calculated for unused leave?
These questions are clarified by expert Kamala Yusifova.
According to paragraph “x” of Article 9 of the Labor Code, one of the main rights of an employee under an employment contract is the right to use paid annual leave of no less than the minimum duration, as well as additional, social, unpaid, or educational leave, where applicable.
Regardless of how long an employee has worked at an enterprise, their annual leave entitlement accrues from the first day of employment. According to the requirement of Article 114 of the Labor Code, the main annual leave is set at 21 or 30 days. Article 83.4 of the Code stipulates that upon termination of an employment contract, the final settlement (including monetary compensation for unused annual leave, salary due to the employee, and other payments) must be paid on the employee’s last working day. Article 144.1 of the Code provides that, regardless of the reason or basis for termination of the employment contract, the employee must be paid monetary compensation for all unused annual leave entitlements accrued up to the day of termination, without any conditions or restrictions.
As noted above, the main leave is 21 or 30 days. Therefore, in the final settlement, the employee will be compensated for 21 or 30 days of annual leave. According to Article 144.3 of the Code, monetary compensation is not paid for unused additional leave. The unused annual leave days are calculated proportionally to the months worked.
Example 1: An employee works at the enterprise as a specialist with a monthly salary of 2,000 manats. Their main leave entitlement is 30 days, plus an additional 4 days for length of service and 2 days for having a child. Upon leaving the job, the calculation will be based on the 30 days of main leave. Suppose the employee did not complete a full work year and resigned 2 months after being hired. In that case, their leave compensation will be calculated as follows:
30 ÷ 12 = 2.5 days
2.5 × 2 = 5 days
The compensation is calculated in accordance with the rules established in Article 140 of the Labor Code for calculating the average salary during leave. The average salary for leave purposes is determined based on the average salary for the 12 calendar months preceding the month in which the leave is granted, regardless of which work year it relates to. For employees who have worked fewer than 12 months, the average monthly salary is calculated based on the actual full calendar months worked.
To calculate the average daily salary, the total salary for the 12 calendar months prior to the leave is divided by 12 to find the average monthly salary. This amount is then divided by the average number of calendar days in a month (30.4) to determine the daily salary. The daily salary is then multiplied by the number of leave days.
(2,000 + 2,000) ÷ 2 = 2,000 manats
2,000 ÷ 30.4 = 65.79 manats
65.79 × 5 = 328.95 manats
Thus, after 2 months of work, the employee will be paid 328.95 manats in compensation for unused annual leave.
The final settlement (compensation for unused leave, salary due, and other payments) must be paid to the employee on their last working day. For example, suppose the employee’s last working day was September 2, 2025. In that case, they must also be paid their salary for 2 days.
First, let us calculate the daily salary. According to the 2025 production calendar, September has 22 working days under a 5-day workweek. Therefore, the daily salary is:
2,000 ÷ 22 = 90.90 manats
90.90 × 2 = 181.8 manats (for 2 days).
Suppose the employer also awarded the employee a 50-manat bonus for September. In that case, the final settlement will be as follows:
181.8 + 328.95 + 50 = 560.75 manats.
In some cases, newly hired employees have to leave their jobs within a short period of time for various reasons. If an employment contract is terminated within a short period, such as 1–2 months, the employee must be given the final settlement. But what payments are made to an employee who leaves the job before completing 6 months or 1 year at a new workplace? In this case, is compensation calculated for unused leave?
These questions are clarified by expert Kamala Yusifova.
According to paragraph “x” of Article 9 of the Labor Code, one of the main rights of an employee under an employment contract is the right to use paid annual leave of no less than the minimum duration, as well as additional, social, unpaid, or educational leave, where applicable.
Regardless of how long an employee has worked at an enterprise, their annual leave entitlement accrues from the first day of employment. According to the requirement of Article 114 of the Labor Code, the main annual leave is set at 21 or 30 days. Article 83.4 of the Code stipulates that upon termination of an employment contract, the final settlement (including monetary compensation for unused annual leave, salary due to the employee, and other payments) must be paid on the employee’s last working day. Article 144.1 of the Code provides that, regardless of the reason or basis for termination of the employment contract, the employee must be paid monetary compensation for all unused annual leave entitlements accrued up to the day of termination, without any conditions or restrictions.
As noted above, the main leave is 21 or 30 days. Therefore, in the final settlement, the employee will be compensated for 21 or 30 days of annual leave. According to Article 144.3 of the Code, monetary compensation is not paid for unused additional leave. The unused annual leave days are calculated proportionally to the months worked.
Example 1: An employee works at the enterprise as a specialist with a monthly salary of 2,000 manats. Their main leave entitlement is 30 days, plus an additional 4 days for length of service and 2 days for having a child. Upon leaving the job, the calculation will be based on the 30 days of main leave. Suppose the employee did not complete a full work year and resigned 2 months after being hired. In that case, their leave compensation will be calculated as follows:
30 ÷ 12 = 2.5 days
2.5 × 2 = 5 days
The compensation is calculated in accordance with the rules established in Article 140 of the Labor Code for calculating the average salary during leave. The average salary for leave purposes is determined based on the average salary for the 12 calendar months preceding the month in which the leave is granted, regardless of which work year it relates to. For employees who have worked fewer than 12 months, the average monthly salary is calculated based on the actual full calendar months worked.
To calculate the average daily salary, the total salary for the 12 calendar months prior to the leave is divided by 12 to find the average monthly salary. This amount is then divided by the average number of calendar days in a month (30.4) to determine the daily salary. The daily salary is then multiplied by the number of leave days.
(2,000 + 2,000) ÷ 2 = 2,000 manats
2,000 ÷ 30.4 = 65.79 manats
65.79 × 5 = 328.95 manats
Thus, after 2 months of work, the employee will be paid 328.95 manats in compensation for unused annual leave.
The final settlement (compensation for unused leave, salary due, and other payments) must be paid to the employee on their last working day. For example, suppose the employee’s last working day was September 2, 2025. In that case, they must also be paid their salary for 2 days.
First, let us calculate the daily salary. According to the 2025 production calendar, September has 22 working days under a 5-day workweek. Therefore, the daily salary is:
2,000 ÷ 22 = 90.90 manats
90.90 × 2 = 181.8 manats (for 2 days).
Suppose the employer also awarded the employee a 50-manat bonus for September. In that case, the final settlement will be as follows:
181.8 + 328.95 + 50 = 560.75 manats.