Ministry of Labor, Employment, Veterans and Social Affairs („the Ministry“) on October 15, 2020 published a notice for employers regarding the duration of annual leave, in order to eliminate doubts that some employers have when employee is on paid leave during the calendar year or is temporarily unable for work in the terms of health insurance regulations.
Entitlement to annual leave
Article 68 of the Labor Law prescribes that an employee is entitled to use annual leave in a calendar year after one month of continuous work from the day of employment with the employer.
It is deemed that continuous work also includes a period of temporary inability for work, pursuant to health insurance regulations, and absence from work with compensated salary.
Holidays that are non-working days in accordance with the law, absence from work with compensated salary, and temporary inability for work in accordance with the health insurance regulations, shall not be counted as annual leave days.
Moreover, if the employee is temporarily unable to work during the use of annual leave in terms of health insurance regulations – he has the right to continue using the annual leave after the expiration of such inability for work.
Paid leave and temporary inability for work
The Ministry pointed out that employees who during the calendar year for which they are entitled to annual leave:
- are on paid leave, with salary compensation, in accordance with the Article 116 of the Labor Law or
- is absent from work on the basis of temporary inability for work in terms of health insurance regulations,
has the right to the corresponding annual leave, determined by the decision on the use of annual leave.
As a reminder, the Article 116 of the Labor Law prescribes that an employee is entitled to salary compensation in the amount of at least 60% of the average salary in the previous 12 months, provided that it cannot be less than the minimum salary determined in accordance with the law, during the cease of work, i.e. reduction of the volume of work which occurred without employee’s fault.
Finally, the Ministry concluded that leave from work due to temporary inability for work in the terms of health insurance regulations and paid leave, with salary compensation in accordance with Article 116 of the Labor Law, do not affect the duration of annual leave determined by the decision on the use of annual leave.
This article is to be considered as exclusively informative, with no intention to provide legal advice.
If you should need additional information, please contact us directly.
By Sara Necic, Senior Associate, and Natalija Dukic, Associate, PR Legal