If you only work for one year, is it 11 annual leave? Is it 26 (11 + 15)?

The number of annual leave that a one-year contract worker takes upon expiry of the contract

At the end of 2021, the Supreme Court ruling that heated up the labor world came out.

That is, " workers who have signed a one-year fixed-term employment contract are granted up to 11 days of annual leave ."

 Previously, the Supreme Court and the Ministry of Employment and Labor said, "For one-year contract workers, if they do not use the 15-day annual leave given when 80% or more of them go to work, and the 11-day leave given for every one month of work in the first year, the right to claim up to 26 days' worth of annual leave is granted. I remember it as a judgment that became even more controversial because it said that it would happen.

 The Ministry of Employment and Labor, which is greatly affected by the Supreme Court ruling, changed the existing administrative interpretation to the 2021.12.16.

2021.10.14. With the same purpose as the Supreme Court ruling, we have provided an interpretation of the annual leave accrual standards.

 Therefore, if you provide only one year of work for a one-year contract period, only 11 annual leave will be generated instead of 15 + 11 = 26 .

 

Even for regular employees who receive annual leave based on the fiscal year, there is no additional annual leave if they retire on December 31st.

The revised annual leave accrual standards apply to regular employees as well .

In the administrative interpretation of the Ministry of Employment and Labor, regular workers are also clearly explained in this way.

If a regular employee works for one year (365 days) in the last year of his/her service and retires, he/she can claim both the unused allowance for the 15-day annual leave and the additional annual leave given to those with three or more years of service, even if the 80% attendance rate is met. none. [Ministry of Employment and Labor Administrative Interpretation (2021.12.16.)]

 Therefore, due to this change of administrative interpretation, annual leave is not used as a means of monetary compensation,

He said that he would actively promote the "Annual Leave Use Promotion System" as a system to guarantee workers' right to rest.

 

 

Then, under what circumstances can I receive additional annual leave?

Ministry of Employment and Labor: "You just have to work one more day." 

??? : ....yes?

 That's right.

The Ministry of Employment and Labor explains that if you retire after working 366 days, you will receive additional annual leave (15 annual leave for 80% attendance per year).

This condition cannot be applied if the contract period is fixed for one year and the retirement date is fixed at the end of the year.

 

 

Extra: Whether or not annual paid leave allowance is included for members of the retirement pension (defined contribution type-DC type)

In the case of severance pay and defined benefit retirement pension (DB type), unused annual paid leave allowance that occurs only after retirement is not included in the average wage.

❍ According to Article 8 of the 「Employee Retirement Benefit Security Act」, an employer who wants to establish a severance pay system must establish a system in which an average wage of 30 days or more for one year of continuous service can be paid as severance pay to workers who retire. ❍ Allowances for unused annual paid leave that have already occurred before retirement should be included in the calculation of the average wage for severance pay calculation. . [Labor Welfare Division-1715, 2012-05-21]

 

 In the case of a defined contribution retirement pension (DC type), contributions are required to be paid based on the total annual wages, so annual paid leave allowances resulting from retirement should also be included.

In accordance with Article 20 (1) of the 「Employee Retirement Benefit Security Act」, the employer must pay a contribution equivalent to at least 1/12 of the subscriber's total annual wage in cash to the subscriber's defined contribution retirement pension plan account. - “Total annual wages” means the total amount of wages paid to workers during the current business year. Since annual paid leave can only be granted when more than 80% of the employee has worked for one year, unless otherwise specified, this can be regarded as compensation for one year of work. Since the annual leave allowance that can be paid is wages (refer to the judgment of 2011da4629 sentenced on Dec. 26, 2013 in the Supreme Court), - Allowance for unused annual paid leave, which is only due to the employee's retirement, is also included in the calculation of the DC-type contribution. no see. [Retirement Pension Welfare Division-3396, 2017-08-11]

 

 I conclude this article by attaching an administrative interpretation related to the recently changed standards for calculating annual paid leave by the Ministry of Employment and Labor.