With the recent amendments to Law No. 6 for the Year 2010 regarding Labor in the Private Sector, many human resource and finance departments are inquiring on how to properly adjust their internal systems to comply with the new law. The most significant change to the law is in regards to Paid Annual Holidays (Article 70) and how such holidays are calculated.
The law previously stated that employees shall be entitled to a 30-day paid annual leave, which shall not be computed among the official holidays or sick days. The new law states that employees shall be entitled to a 30-day paid annual leave, which shall not be computed among the weekends, official holidays and/or sick days.
According to the law, Friday is categorized as the weekend and Saturday is a non-working day (rest day). Thus, both of these days should not count towards an Employee’s holiday time. For example:
If an employee took an annual leave from the 1st of August till the 31st of August, he or she shall be entitled to 23 days of paid annual holiday time for this month. The employee will then have a remaining balance of 7 days for paid holiday time.
Paid Annual Holidays can be taken in increments or at one time, which is a matter that should be discussed with the employer and employee.
By Najmah Brown, Esq.