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Annual leave deductions & unpaid leave
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asked on Jan 10, 2005 at 16:35
by   mira
Annual leave:
Does an employer have any rights to deduct the annual leave of their staff when :

(1) a staff is supposed to come to the office to sign for standby (receive standby pay) but when did not turn up, deduct his annual leave?

(2) a staff is supposed to work 28 days and off 14 days, but when operational requirement needs him to work only 26 days he continues to have 14 days off, and hes required to go back to work after 14th day off, i.e. to continue his 28 days work. There is a short working days of 26 days,but off for 14 days. If the Company deducts the 1 off day saying that 26/2 = 13 days off, and resort to deducting 1 day annual leave from him, or, if he has not got annual leave balance, deduct his pay (unpaid leave of 1 day). Is this right legally? Can he sue the Company such deduction from his annual leave? And can another sue for the same reason if his pay is deducted (unpaid leave) for that 1 day? Or the Company has to explain to him why it has been done, and deduct his pay/annual leave?
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answered on Jan 20, 2005 at 10:18
by   Subash
First of all, is the employee covered by the employment act? If he is, then your company would require permission to require him to work for 28 days in a strecth.

1. If he did not turn up for that day, you dont pay him for that day. Why deduct his annual leave?

2. Does his contract state that he is due for 14 days off after 28 days of work? If so, then you would require written consent from the employee before deducting his annual leave. It would be better to just amend the contract and insert the formula (work days / 2 = off day). Regardless of the circumstances, you cannot deduct his pay.
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answered on Jan 22, 2005 at 13:23
by   Mira
(1)   Re Annual leave:  say a person was on unpaid leave for 10 days in a year.  His salary was deducted for those 10 days.  He's supposed to have accrued 14 days annual leave between 1/1/04 - 31/12/04.  His 10 days unpaid leave fall in between the year 2004.  Question > will this mean that his annual leave is now due on 10 January 2005?  Why?  Because his leave was supposed to be due 365 days on 31/12/04.  He took 10 days unpaid leave, and so the Company said he wasn't working for 10 days, therefore they pushed his annual leave due date back 10 days to 10/1/05.  Is this legally right, whether or not he's under the Employment Act or Labour Ordinance?  Or does this depends on the Company's policy?

(2)  When he takes 10 days unpaid leave, would it be legally right to say that his annual increment and bonus due date will be pushed back by 10 days, i.e. to 10/1/05 assuming that it was supposed to be due on 31/12/04?
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answered on Jan 24, 2005 at 14:22
by   Vince
Why mess yourself around with basic salary, annual leave, absent days, standby allowance etc....and so on.....to CREATE SO MUCH CONFUSIONS FOR YOURSELF AND THE EMPLOYEES.

Just deduct or pay whichever is applicable. Separate them each PART by PART and Topic by Topic.
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answered on Jan 25, 2005 at 11:28
by   Subash
According to the employment act, annual leave is to be provided for every twelve months of continous service. Now if an employee is granted unpaid leave, and the period exceeds 30 days, then that period (unpaid leave) shall be disregarded for computing his length of service, which means the employee would have to make up for the 30 days. However, the employee that is affected may not be an employee covered by the employment act, in which case, it may be the company's policy.

2. This may yet again be the company's policy.
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