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Please verify if the following leave policy can be enforced:

The Company’s annual leave cycle...
Please verify if the following leave policy can be enforced:
The Company’s annual leave cycle commences on 01 February and terminates 31 January of the following year. Employees may only carry over a maximum of 10 (ten) days of his/her annual leave in any given leave cycle. Any annual leave over and above 10 days will be automatically forfeited at the end of each annual leave cycle.
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Answered in 1 minute by:
1/17/2018
DamienJD
DamienJD, Attorney
Category: South Africa Law
Satisfied Customers: 5,418
Experience: Attorney. Well versed, understanding, friendly
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Hello: My name is ***** ***** I am an attorney. Please give me a moment to review your question. I may ask some questions to clarify issues.

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Unfortunately, your question was miscategorized and appeared in the US category and not the SA category. I will opt out so an SA attorney can respond.

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Christiaan K
Category: South Africa Law
Satisfied Customers: 228
Experience: Attorney & Director at Lombard Kotze Incorporated
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Good day

My name is ***** ***** I will assist you in answering your question today so please feel free to ask as many follow-up questions as you like until you are satisfied that I have answered your question.

The answer to your question is, yes the policy is valid and can be enforced. It is actually quite common and most employers have some similar policy.

Section 20(4) States that: An employer must grant annual leave not later than six months after the end of the annual leave cycle. This provision may be interpreted to read that annual leave can only be granted to an employee within the annual leave cycle itself, being 12 months, but not later than 6 months thereafter.

In Ludick v Rural Maintenance (Pty) Ltd (2014) 2 BLLR 178 (LC) it was found that an employee is entitled to utilise their accumulated leave for a period of 6 months after the annual leave cycle, as provided for in s20(4) of the BCEA and that this period may not be shortened by any agreement between the parties. Accordingly, annual leave not taken with the annual leave cycle or within 6 months thereafter, as envisaged by s20(4) of the BCEA, shall be forfeited.

Employers must also take steps to limit the amount of leave that accrues to its employees to prevent circumstances where they have so much leave that the employer will have to pay out upon termination of employment.

I trust that this answered your question.

Please be so kind as to rate my service by clicking on the relevant stars or smiley faces. If you do not rate my service, I do not get paid by the website so I would really appreciate it if you would be so kind as to rate my service positively.

Kind regards

Christiaan K
Category: South Africa Law
Satisfied Customers: 228
Experience: Attorney & Director at Lombard Kotze Incorporated
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