Revealed: Three fool-proof ways to calculate annual leave

Simangele Mzizi, Fsp Business, 05 Nov. 2014

Tags: leave, annual leave, bcea, basic conditions of employment act, calculating annual leave

Employers know that the Basic Conditions of Employment Act (BCEA) makes it clear that employees are entitled to annual leave.

While this is the case, most employers struggle to work out how much annual leave their employees are entitled to. As a result, they end up going against the BCEA.

Don’t take that risk.

Read on to discover three fool-proof ways to calculate annual leave so you can comply with the BCEA and handle annual leave effectively.

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There are three methods or ways to calculate your employees’ leave entitlement

Method 1: According to the Labour Law for Managers Loose Leaf Service, you must grant your employees at least twenty one consecutive days’ annual leave on full remuneration for each annual leave cycle. Twenty one consecutive days of annual leave equates to fifteen working days and six weekend days – that’s three weeks of annual leave. The same applies if your employee works a six-day week.
You can change the above method of calculating leave by agreement with your employees to:
Method 2: One day’s leave for every seventeen days worked or for which the employee was entitled to be paid.
Method 3: One hour’s leave for every seventeen hours worked or for which the employee was entitled to be paid.

Here’s an example that shows how to calculate annual leave

If one of your permanent employees works for you for five days per week, eight hours per day, you must grant this employee at least fifteen days’ annual leave on full remuneration. However, if one of your employees works for one or two days per week, then, by agreement, you can grant this employee one day’s leave for every seventeen days worked.
Now that you know the three fool-proof ways to calculate annual leave, comply with the BCEA and handle annual leave effectively.
PS: For more information on annual leave, check out The Ultimate Guide to Annual Leave.

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