“Aunty, can a company implement a rule only 6 days of annual leave balance can be carried forward to the following year, and if not used by 31 March the following year, the leaves are forfeited?”
Meanwhile, in the Employment Act 1955 Section 60E(2), states: “The employer shall grant and the employee shall take such leave not later than twelve months after the end of every twelve months continuous service and any employee fails to take such leave at the end of such period shall thereupon case to be entitled thereto…”
So, does this mean all leave balance from the current year can be carried forward to the following year?
I know, it’s confusing for me too.
But, I’ve finally received the clarification and permission from JTK to publish this to clear the air.
Based on my correspondence with JTK, the answer to the earlier question is yes to the earlier question, a company can set their own terms and conditions regarding how to treat annual leave balance, as there are no specific provisions about leave carry forward in Employment Act 1955 – as long as the terms are reasonable.
However, if the employee has annual leave balance because the employer is consistently rejecting leave applications, then it’s only fair for the company to allow the annual leave balance to be carried forward or to encash the leaves.
To challenge the restrictions on not allowing you to carry all your annual leave balance to the following year, you would need to provide proof that your leave applications have been frequently rejected.
Hope this clarifies.
xoxoxo, AuntyHR
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