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Which days are not taken into account when calculating vacation (leave) compensation?
Which days are not taken into account when calculating vacation (leave) compensation?
Recent amendments to the Labor Code have introduced new terminology into the legislation. One of these changes concerns the payment of monetary compensation for unused leave.
The issue has been explained in detail by human resources and payroll specialist Firəngiz Səmədova.
First of all, it should be noted that the title of Article 144 of the Labor Code has been revised. While the previous version was titled “Article 144. Payment of monetary compensation for unused leave,” following the amendment it has been renamed “Article 144. Payment of compensation for unused leave.” In other words, the term “monetary payment” used in the article has been replaced with the term “compensation.”
Another significant change is reflected in paragraph 3 of the same article. According to paragraph 3 of Article 144 of the Labor Code as adopted in the new version, upon termination of employment relations, no compensation shall be paid for additional leave provided for under Articles 115–117 and 118-1 of this Code, as well as for educational, creative, and social leave. In the previous version, this provision was worded as follows: “Upon termination of employment relations, no monetary compensation shall be paid for additional leave provided for under Articles 115 and 116 of this Code, as well as for educational, creative, and social leave.”
Let us examine the provision before and after the amendment through an example:
Example: A female employee working in a company as a specialist is entitled to 30 calendar days of basic annual leave, 2 calendar days of additional leave based on length of service (Article 116), and 2 calendar days of additional leave due to having two children under the age of 14 (Article 117), amounting to a total of 34 days of annual leave. Upon termination of her employment contract, which leave days will be compensated?
Before the amendment, the number of leave days subject to compensation in this case was 32. This included 30 days of basic leave and 2 additional days granted under Article 117 of the Labor Code. This was because Article 117 was not included in the list of additional leave days for which compensation was not payable under paragraph 3 of Article 144 in the previous version. Following the amendments, however, the number of days subject to compensation in this case is limited to 30 days, consisting solely of basic leave. As of 2026, calculations will be carried out in this manner.
It should be noted that the previous version of paragraph 3 of this article often caused disputes in practice regarding whether compensation should be paid under Article 117. The recent amendments have now definitively resolved these issues.
Recent amendments to the Labor Code have introduced new terminology into the legislation. One of these changes concerns the payment of monetary compensation for unused leave.
The issue has been explained in detail by human resources and payroll specialist Firəngiz Səmədova.
First of all, it should be noted that the title of Article 144 of the Labor Code has been revised. While the previous version was titled “Article 144. Payment of monetary compensation for unused leave,” following the amendment it has been renamed “Article 144. Payment of compensation for unused leave.” In other words, the term “monetary payment” used in the article has been replaced with the term “compensation.”
Another significant change is reflected in paragraph 3 of the same article. According to paragraph 3 of Article 144 of the Labor Code as adopted in the new version, upon termination of employment relations, no compensation shall be paid for additional leave provided for under Articles 115–117 and 118-1 of this Code, as well as for educational, creative, and social leave. In the previous version, this provision was worded as follows: “Upon termination of employment relations, no monetary compensation shall be paid for additional leave provided for under Articles 115 and 116 of this Code, as well as for educational, creative, and social leave.”
Let us examine the provision before and after the amendment through an example:
Example: A female employee working in a company as a specialist is entitled to 30 calendar days of basic annual leave, 2 calendar days of additional leave based on length of service (Article 116), and 2 calendar days of additional leave due to having two children under the age of 14 (Article 117), amounting to a total of 34 days of annual leave. Upon termination of her employment contract, which leave days will be compensated?
Before the amendment, the number of leave days subject to compensation in this case was 32. This included 30 days of basic leave and 2 additional days granted under Article 117 of the Labor Code. This was because Article 117 was not included in the list of additional leave days for which compensation was not payable under paragraph 3 of Article 144 in the previous version. Following the amendments, however, the number of days subject to compensation in this case is limited to 30 days, consisting solely of basic leave. As of 2026, calculations will be carried out in this manner.
It should be noted that the previous version of paragraph 3 of this article often caused disputes in practice regarding whether compensation should be paid under Article 117. The recent amendments have now definitively resolved these issues.