HRSINGAPORE Community Discussions
Offset Notice Period with Annual Leave
Dear HR Professionals,
Would like to check if Offset Notice Period with Annual Leave includes Public Holiday.
For instance, staff on 5 days work week wants to use annual leave to offset notice period in order to bring forward last day of employment.
Last day employment is on 12 May 2020 and staff wants to use 10 days annual leave to offset.
So his last day employment becomes 24 April 2020 and we will only pay him salary till this day?
REPLIES & COMMENTS
Employee compensation includes Public Holiday and Annual Leave. You will still need to pay the days in lieu plus the Annual Leave including PH if any.
Using annual leave to offset notice period to bring forward the last day of employment, yes, you will pay him salary till his last day on 24 April 2020.
Dear HR Friend,
If the management approved his 10 day annual leave, we will pay him till his last day of employment ie 10 May.
But if the option is offset by annual leave, then the person will be paid till 23 April.
Can you confirm the last day of employment is 24 Apr or 29 Apr?
Yes, pay until 24 Apr/29Apr.
The rest of the days until 12 May will be paid annual leave. No need to pay extra until 12 May.
Taking into consideration public holidays as part of the notice period; last working day should be 24 April 2020 after applying 10 working days leave. Last salary should still be computed up to 12 May 2020 (as annual leave is paid leave, if you pay up to 24 April, then employee is not compensated for the unused leave).
In my honest opinion, make 24 April 2020 as the official last working day and pay out the 10 days unused leave. Company do not need to pay for the 2 public holidays (1 May and & 7 May).
Correct me if I’m wrong.
Dear HR practitioner
Yes correct, offsetting notice period with annual leave brings forward the official last day with the company and the company pays till that same day.
Since the notice period includes public holidays (PH), rest days and non working days, the 10 days annual leave used to offset should cover the PH as well. Hence, the official last working day should be 28 April.