The first type of leave that employees will be able to take from 1 January 2021 will be annual leave and pro rata.
Annual leave is regulated by Section 213(1) and (2) of the Labour Code. In order to be entitled to annual leave, an employee must meet two conditions at the same time (Art. 213(1) of the Labour Code). The first condition is continuous employment with one employer for at least 52 weeks per calendar year. At the same time, the employee must have worked 52 times the weekly working time (or a shorter weekly working time). The annual leave entitlement is calculated by multiplying the weekly working time (shorter weekly working time) by the annual leave in weeks. This gives the annual leave entitlement in hours. It follows from the above that the length of the working week plays an important role in holiday entitlement.
Example: If an employee works 40 hours per week for a full calendar year and their annual leave entitlement is 5 weeks, then they are entitled to 200 hours annual leave if they work all 52 times their weekly hours.
40 hours (weekly working time) x 5 weeks (annual leave entitlement) = 200 hours (annual leave entitlement).
Example: If the employee has a weekly working time of 37.5 hours and a holiday allowance of 5 weeks, his holiday entitlement will be 187.5 hours.
37.5 hours (weekly working time) x 5 weeks (annual leave entitlement) = 187.5 hours (annual leave entitlement).
Example: An employee who works part-time and has a weekly working time of 30 hours and a holiday allowance of 5 weeks will be entitled to 150 hours annual leave.
30 hours (weekly working hours) x 5 weeks (annual leave entitlement) = 150 hours (annual leave entitlement).
In all three examples above, the employment relationship is conditional on the employment relationship lasting a full calendar year (52 weeks = 364 calendar days) and working 52 times the weekly working time (shorter weekly working time). If the employee fails to meet one of these conditions, he is not entitled to annual leave, but to proportionate part.
A condition for entitlement to a pro rata share of leave the continuous duration of the employment relationship for at least 4 weeks with one employer in a calendar year and the working of 4 times the weekly working time or a shorter weekly working time (Section 213(3) of the Labour Code). Both of these conditions must be met simultaneously. If the employee fulfils both conditions, 1/52 of the annual leave entitlement is due for each weekly working period worked (Art. 213(4) of the Labour Code).
Example: The employee's employment will commence on February 1, 2021 and will last until the end of the calendar year. His weekly working hours will be 40 hours and his annual leave will be 5 weeks. The employee will be entitled to a pro rata amount of leave of 185 hours as he will have worked 48 full weeks, i.e. 48 times his weekly working hours. He is therefore entitled to 48/52 of his annual leave entitlement.
1920 hours (number of hours worked in a calendar year) / 40 hours (weekly working time) = 48 weeks (number of full weeks worked)
200 hours / 52 weeks = 3.8461 hours (1/52 of holiday entitlement)
3.8461 hours x 48 weeks (48 multiples) = 184.6128 hours (48/52 annual leave entitlement) - rounded to 185 hours.
The reason why an employee is only entitled to a pro-rata amount of holiday may be either because of the duration of the employment relationship (the employment relationship lasts for only part of the calendar year - less than 52 weeks) or because the employee missed working time for reasons that are not considered as time worked for the purposes of holiday entitlement, or are considered as time worked up to a limit of 20 times the weekly working time when working at least 12 times the weekly working time during the calendar year. For more information on the crediting of compensatory time for holiday entitlement purposes, see the separate blog article on these periods.
Pursuant to Section 213(5) of the Labour Code, if an employee works more than fifty-two times the weekly working time or shorter weekly working time in a calendar year according to the shift schedule, the employee's entitlement to leave is extended by one fifty-two times for each weekly working time (shorter weekly working time) worked.
AVENSIO SW programme
When calculating the entitlement to annual leave or its pro rata part, the program is based on the settings of the beginning and end of the employment relationship on the Employment relationship - tab Employment relationship. This is where they see whether the 52-week employment condition is met or not. If not, the employee is entitled to pro-rata leave.
Another criterion is the hours, i.e. the length of the working week (shorter working week) set in the tab Employment relationship - tab Account - classification. An important condition is the amount of leave you see on the card Employment - Compensation tab - Holiday balances, averages window.
In addition, the program is based on the time the employee has already worked and the time the employee is scheduled to work, see tab Employment - Compensation tab - Holiday entitlement and balances window - row Worked + planned (1). What an employee misses, called compensatory time, plays an important role in calculating holiday entitlement. You can see their records in the program AVENSIO SW on the card Employment relationship - Compensation tab - Entitlement and leave balances window - row Absences - fully credited (2), Absences - up to the limit (§ 216 (2)) (3) and Absences...of which credited (4).
By summing the hours actually worked, scheduled, credited and counted towards the limit, the programme obtains the total number of hours counted towards holiday entitlement, i.e. the number of whole weeks, i.e. the number of multiples of weekly working time counted towards holiday entitlement (tab Employment relationship - Compensation tab - Entitlement and leave balances window - rows Total credited (1 + 2 + 4) - hours and Total credited - whole weeks).
You can see your calculated holiday entitlement on the tab Employment - Compensation tab - Holiday balances, averages window, but also in the window Entitlement and leave balancesto open in the window Holiday balances, averages via the button with three dots. In both windows you can see the holiday entitlement in hours in row Year, column Entitlement.
