written by Today we bring you our latest Smart Update on the new rules regarding the payment in lieu of unused annual leave upon termination of employment and the applicable limitation period.
Under High Court of Cassation and Justice (ÎCCJ) Decision No. 40/2026, which became binding as of 11 August 2026, it has been established that, for claims concerning payment in lieu of unused annual leave upon termination of employment, the three-year limitation period starts to run from the date of termination of employment. The decision further clarifies that, for annual leave entitlements carried forward beyond the 18-month carry-over period, payment in lieu is possible only where the employer has failed to effectively enable the employee to take their annual leave.
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