Dismissal from work does not mean that accumulated vacation days disappear. According to current legislation, specifically Article 83 of the Labor Code of Ukraine and Article 24 of the Law «On Vacations», every employee has the right to monetary compensation for all unused days of annual leave, regardless of the reason for terminating employment.
Types of Leave Eligible for Monetary Compensation
The right to payment applies not only to the main annual leave, which generally amounts to at least 24 calendar days, but also to additional annual leaves provided by law. This includes additional social leave for employees who have children or an adult child with a disability since childhood of subgroup A of group I.
It is important that unused vacation days from previous years are not automatically canceled. Upon dismissal, the employer is obliged to take them into account during the final settlement. An exception is made for minor employees under 18 years old, who are strictly prohibited from replacing vacation with money while working, but upon dismissal, they are also paid compensation.
Receiving Compensation Without Resigning From Position
It is also possible to replace part of the vacation with a monetary payment while continuing employment, subject to mandatory restrictions. In accordance with Article 24 of the Law of Ukraine «On Vacations», at the request of the employee, part of the annual leave can be replaced by monetary compensation, provided that the actually granted leave for the corresponding working year is not less than 24 calendar days.
That means compensation can only be applied to the portion exceeding 24 days. For example, if an employee is entitled to 28 calendar days of annual leave, after using 24 days, they can claim compensation for the remaining four days. Employees called up for military service have a special procedure allowing compensation for all unused days upon application.
Calculation Procedure and Timing of Payments
The final amount of compensation depends on the number of unused vacation days and the average daily salary. The calculation is carried out in accordance with the Procedure for Calculating Average Salary approved by Government Resolution No. 100, based on payments for the last 12 calendar months preceding the month of payment.
Both the official salary and other payments included in the average earnings structure are taken into account. Periods that are excluded under the rules of this Procedure are omitted from the calculation period, ensuring the accuracy of the final amount.
Significance of Compliance and Protection of Employee Rights
Correct calculation of compensation is an important guarantee of compliance with labor rights. Adhering to established calculation rules helps prevent labor conflicts and potential financial sanctions for enterprises, ensuring transparency of financial settlements upon dismissal or changes in working conditions.
