Accumulated leave forms part of a retrenchment package

The Labour Act sets conditions of employment, with sector-specific arrangements often set through employment councils.

Annual leave

Employees accrue paid annual leave under the Act, with entitlements frequently improved by collective agreement at sector level.

Why your leave record matters financially

Accumulated leave days form part of a retrenchment package, alongside the severance component and payment in lieu of notice.

That means untaken leave has direct cash value at termination. Keep your own record of days taken and any requests refused.

Employment councils

Sector-level bodies that negotiate conditions for their industries. Where one covers your workplace, its agreement may set leave, hours and pay above the statutory floor.

It is worth establishing whether one applies to you, since it also plays a role in retrenchment consultation.

The employment code

Registered codes set out disciplinary and grievance procedures. The employer must comply with the code, or the model code, when terminating.

Sick leave and maternity

Provided under the Act, with conditions that collective agreements may improve.

Working hours

Set under the Act, with sector variations through employment council agreements.

What to check

1. Whether an employment council covers your sector
2. Whether your workplace has a registered employment code
3. That your leave balance is accurately recorded
4. That NSSA contributions are being remitted

Keep your own leave record

If your employer does not maintain a clear register, keep your own note of days taken and refused.

Given that accumulated leave forms part of a retrenchment package, that record has direct financial value at the end of the relationship.

Where to raise a problem

Your employment council if one covers you, and the Ministry of Public Service, Labour and Social Welfare.