Annual leave is paid time off from work granted by employer to employees. Employees should be paid the same as normal working days during their annual leave in accordance with China’s labor law. Here are some common questions asked by employers regarding paid annual leave.
1. What condition should an employee meet to be eligible for paid annual leave?
Employee who has been working continuously for more than one year is entitled to paid annual leave. The term “more than one year” includes two situations. Working with one employer for over one year is no doubt eligible. In addition, it is also acceptable if the employee works for more than one consecutive year with more than one employer or works several non-consecutive periods at the same company with total time employed amounting to over one year.
2. How is the number of days of annual leave calculated?
By China law, the days of annual leave for a new employee shall be calculated in accordance with a specific formula. The formula calculates the number of days remaining the calendar year from the employees first day of work. This number is then divided by the total number of years the employee has worked. If the calculation results in a partial number, it is rounded down to nearest whole number. Sound complicated? If in doubt, contact your China lawyer!
3. How is annual leave arranged?
In general, annual leave should be taken once within each one year period. In the event of circumstances which require an employer to delay annual leave due to heavy work load, the employer should explain the delay in implementing the annual leave, and obtain informed consent from the employee. Employers are required by law to pay an employee an additional 200% for each day of unused annual leave in accordance with China’s employment laws and relevant regulations, however, this right can be waived by employees under certain conditions.