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Law

Your Employer Generally Has to Pay Leave Pay Before or on Your Usual Pay Day

The Basic Conditions of Employment Act requires an employer to pay an employee's leave pay either before the leave period begins or, by agreement, on the employee's usual payday.

Taking leave shouldn't mean suddenly being left without the money you normally depend on. The law recognises that employees still have financial commitments while away from work, making proper leave-pay administration part of employment compliance, not just an internal payroll preference.

Source: Basic Conditions of Employment Act

Frequently Asked Questions

Can leave pay be paid on the normal payday?

Yes, if that arrangement is agreed.

Does annual leave mean an employee receives no salary?

No — statutory annual leave is paid leave for qualifying employees.

Can an employer change the payment arrangement?

The applicable statutory requirements and any agreement with the employee must be considered.

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