Why letting leave pile up creates a liability, and what the BCEA requires.
Large leave balances look harmless until someone resigns or the auditors arrive. Each unused day is a liability on your books, and leave that is not taken defeats its purpose: rest.
The entitlement: section 20 of the BCEA gives employees at least 21 consecutive days' annual leave per 12-month leave cycle. For a five-day week, that is 15 working days. By agreement, it may be one day for every 17 days worked.
When it must be granted: the employer must grant annual leave no later than six months after the end of the leave cycle.
No cash instead of leave: an employer may not pay an employee instead of granting leave, except when employment ends. On termination, accrued leave must be paid out.
What to do: set out the leave cycle, how leave is requested and approved, and any agreed rules on carrying leave over in your leave policy; monitor balances monthly; and plan leave around shutdowns and peak periods so it is actually taken.
Use it, or plan it. Don't let it pile up.
This article is general information, not legal advice for your specific situation. Speak to a MetaCo consultant about your organisation.