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In Which Cases Can an Employee Receive Monetary Compensation for Unused Leave

Monetary compensation for unused leave is not always paid, but only in cases directly provided by law. The basic rules are established by Article 24 of the Law of Ukraine “On Vacations.” It is this norm that determines when unused leave days can be replaced by a monetary payment.

1. Compensation in Case of Dismissal

The most common case is the dismissal of an employee. In such a situation, the employer is obliged to pay monetary compensation for all unused days of annual leave, as well as for unused days of additional leave to employees who have children or an adult child with a disability since childhood of subgroup A of group I. The basis for dismissal does not matter: compensation is paid in any case if the employee has unused days of such leave left.

2. Compensation in Case of Mobilization or Other Type of Military Service

Separately, the law provides for the employee’s right to compensation in case of conscription into military service. This is not only about mobilization, but also about fixed-term service, service by conscription of officer personnel, service of reservists in a special period, as well as acceptance for military service under a contract.

In such a case, compensation for all unused days of annual leave and the corresponding additional leave is paid at the request of the employee and on the basis of their application.

Important: the application must be submitted no later than the last day of the month in which the employee was released from work in connection with conscription into military service.

3. Compensation Without Dismissal — Only for a Part of the Leave

An employee can receive monetary compensation even without dismissal, but only for a part of the annual leave. For this, a mandatory condition must be met: the employee must have already used at least 24 calendar days of annual and additional leaves.

Only leave days exceeding this minimum can be replaced by monetary compensation. That is, “not going on vacation at all and just taking everything in money” — the law does not allow.

Important! Replacement of leave with monetary compensation is not allowed for employees under the age of 18.

In addition, the amount of compensation is calculated according to the rules of the Procedure for Calculating Average Wage, approved by CMU Resolution No. 100. That is, everything is official here: not “by eye,” not “as the accountant feels,” but according to an established mechanism.

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