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The auditor, tax consultant Jurgita Navikienė “Delfi” explained how vacations are calculated and when vacations are most profitable.
According to her, vacations are calculated without including payment for the employee’s unworked time: downtime, inability to work, unpaid leave, etc. Therefore, declared downtime or inability to work will normally have no effect on the employee’s annual vacation after quarantine.
“Annual leave is also ‘earned’ when an employee is sick or inactive. Second, when calculating leave, the amount of previously received sick leave or sick pay paid to the employee by the employer also does not affect the amount of These benefits are not included in the calculation of the average salary of the employee, “explains J. Navikienė.
When can they spend the holidays?
However, there are situations when an employee’s leave may decrease. If the downtime or inability to work lasts longer, such as three months or more, and the employee is granted leave immediately afterward, the question arises: how to calculate the leave?
“According to the procedure for calculating the average salary, it is necessary to calculate the average salary and leave based on the salary specified in the employment contract. And in an employment contract it is not always possible to specify all parts of the salary, not just the main part, the basic part of the salary, but also bonuses and other parts.
Therefore, for example, in the absence of a fixed monthly bonus, the average salary of an employee can only be calculated from the main part of the salary, which means that vacations can decrease, ”the auditor gives an example, but points out that the employer does not consider it abusive.
Photo by Jurgita Navikienė / Vygintas Skaraitis
© Photo from personal album
However, it emphasizes that all the components of remuneration and / or the calculation methodology must be clearly and specifically described at the conclusion of the employment contract. Then the license quantity would be more stable.
“Unfortunately, not all employers have planned this yet,” says the interviewee.
Holidays may be reduced for other reasons not related to downtime, such as the number of business days in the calculation period, the change in the amount of wages, i. and. the State Labor Inspectorate (SLI) reports.
How to calculate the vacation?
VDI specialists point out that if an employee actually worked for two months during the calculation period and the employee was declared downtime for one month, the vacation will be calculated from the two months actually worked and the downtime (or hours of partial inactivity) will not be included. Therefore, declared downtime or partial downtime does not affect the calculation of vacation time, they should not decrease for employees, according to the report.
J. Navikienė provided an example of how vacation leave would be calculated for an employee earning 1000 Eur “hands” per month. If the employee plans to go on vacation in June, the vacation will be calculated based on data for March, April, and May. Suppose an employee from March 16. declared downtime, which lasts until May 31.
According to the procedure for calculating the average salary, only the remuneration for work should be included in the calculation of vacations, not the payment for downtime. If an employee worked only from the first to the fifteenth day of March during the average salary calculation period: March, April and May and received, for example, a salary of 500 euros during the middle of March, because he worked only half a month, then 20 working days of leave, annual leave or four weeks would be 1000 euros. This means that the employee will not suffer as a result of the announcement of downtime; in this case, the license will not be reduced.
When is it worth vacationing the most?
According to the tax advisor, the first reason the license amount would be higher is when the highest salary, including monthly allowances, is received in the three-month period before the vacation month.
The second reason is if the employee has been paid an annual bonus or less for the results of the job, which also increases the amount of leave.
“The most favorable periods should be sought in each case. If the employee’s salary does not change, the amount of leave will generally be very similar, i. And. The same amount as the salary,” explains J. Navikienė.
Will the employee not have the right to leave after the downtime?
SLI draws attention to another issue relevant to employees who have had downtime, as they will not lose the right to leave if they have been out of service during quarantine.
According to VDI specialists, the right to take all or part of the annual license (or receive monetary compensation for it) is lost three years after the end of the calendar year in which the right to the full annual license was acquired, unless the employee really couldn’t take it.
‘The Labor Code does not establish a list of circumstances in which an employee could not take annual leave, so the totality of the circumstances must be evaluated in each case. Cases in which the employee was actually unable to take annual leave could include the employee’s temporary inability to work, certain specific vacations, employer actions, and other cases.
In the event that the employee is unable to take accumulated annual leave due to downtime, this circumstance is considered an important reason, therefore, the term for taking the leave should be extended, ”writes the SLI in a press release.
Can an employer not allow a summer vacation?
Not only that, some employees are concerned about whether the employer has the right to not allow the employee to take summer vacation after downtime after the company resumes operations.
“If leave is still being planned, the employer has the right to refuse to take the employee’s annual leave for objective reasons. Only then must the employer’s decision be reasoned and reasoned. If the parties agree to grant annual leave for a period specifically, unilateral actions by the employer that restrict the possibility of taking this license would be illegal, ”reports VDI.
The SLI reminds that annual vacations must be granted at least once a year. Holidays are calculated in business days. Employees receive at least 20 business days of annual vacation. At least part of the annual vacation cannot be less than 10 business days (if you work 5 business days per week).
Holidays are not included in the duration of the holidays. The work year for which annual leave is granted begins with the employee’s employment. The right to a part of the annual leave arises when the employee is entitled to at least one day of work.
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