Question

Dear HR Professionals,

What is the norm for annual leave carry forward from the previous company during a merger? Do you suggest to en-cash it or to get the employees to utilize the leave up till a certain period?

Thank you.

Andrea

Reply 1

Usually leave is allowed to carry forward for either up to 3 months or even end of the following year depending on company's policy. as you have mentioned it is balanced from the previous year during M&A, it will be good to run as per the company's policy before forfeited. if the name of the acquired company is not going to carry on and there are employees to be laid off or retrenched before finalization of M&A, it will be good that company will pay them off and start everything from fresh if the leave and other HR policies are different but to align and integrate gradually.

SY

Reply 2

For clean-cut over, suggest you en-cash the annual leave.

Dan