Those sections state that on termination of employment, an employer must pay an employee remuneration calculated in accordance with section 21 (1)for any period of annual leave due in terms of section 20 (2) that the employee has not taken.

 

Section 20 (2) stipulates the amounts of annual leave that an employee is entitled to accrue in every annual leave cycle – which, as we know, is a period of 12 months commencing from the first day of employment, or the completion of the prior leave cycle. That seems clear enough - or is it?

Based on what is stated in the BCEA, my view is that upon termination of service, the employee is entitled to be paid out forany period of annual leave that he has accrued in terms of section 20 (2).

At any rate, that is what the act seems to imply.

This would imply that an employee who has resigned, after say 5 years service, and he has a few days accrued from year 1, perhaps a few days left over from year 2, perhaps a few days left over from year 3, and 2 weeks left over from year 4, would be entitled to be paid out for all of that leave. The act states that he is entitled to be paid out for any period of leave that he has accrued in terms of section 20 (2).