You CAN limit accumulated leave
Labour Bulletin | 10 September, 2009 | Hot Topics:
Inside this issue...
- You CAN limit accumulated leave
Dear reader,
In my last job, I worked under a very conscientious manager. So dedicated was she to her job that by the time I left she hadn’t been on holiday in several years. We’re still friends and she told me the other day that she now has 66 days of accumulated leave. I’d hate to think what would happen if she decided to resign!
I’m sure you’re wondering the same. The good news is you CAN limit accumulated leave. But, you have to make sure you do it in your company policy. Take a look at this recent question we had...
You CAN limit accumulated leave
Question
Can I legally limit the accumulated leave days I pay out to my employee who’s resigned?
Answer
You can if you have a policy to this effect which states clearly how much leave can be accrued and that if this is exceeded it won’t be paid out (provided it wasn’t due to work reasons, i.e. you didn’t prevent him from taking leave). However, if it’s leave accrued in a current cycle you’re obliged by the BCEA to pay it out.
Warning! Chances are, if your employee who’s leaving has all this leave saved up, it’s because they were so committed to your company they didn’t want to take it. You don’t want to find yourself pitched against them at the CCMA because you didn’t honour your side of the agreement.
Avoid silly procedural mistakes, and facing the CCMA by taking advantage of our compilation of tips and tools on this very subject.
Until next time,

Nadia Pisanti
Managing editor: Labour Watch Newsletter
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Michelle Govender
Labour Bulletin Editor
The Labour Bulletin team speaks to subscribers every week on landmark labour events and offer valuable and practical information from the Handbook, from questions and answers and from our experts that subscribers can use now to benefit their business.
