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Resignation with Reimbursement by Annual Leave

LK Lee
Fri, 21 Jan 2011 11:45:58 PM  (Last updated: Sat, 22 Jan 2011 11:15:12 AM)


Would appreciate if someone can guide me.

If I tender the resignation on 24 Jan with given a 2 month's notice in writing or to pay in lieu as per my employment contract. Which mean my last day of service in the company will be on 23 Mar.

I have a balance annual leave for 10days and would like to reimburse the annual leave in order to enable me to leave earlier. In that case, is it the calculation for the reimbursement should also include weekend (5 working days) or only deduct for the working days?

If should include weekend, which mean my last day should be 12 Mar? Please correct me if I'm wrong.

Thanks in advance.

KL Siew
Sat, 22 Jan 2011 11:15:12 AM

If you want to use the leave balance to offset the short notice for leaving earlier, the 10 days should include rest days. If you are covered by the EA (which means your salary is less than RM1500), you should be under section 60E(2A) as quoted below, entitled to clear your leave . Anyway, discuss with your HR.

"60E(2A) Notwithstanding subsection (2), upon the termination of an employee's contract of service, the employee shall be entitled to take before such termination takes place the paid annual leave due to be taken in the year in which the termination takes place in respect of the twelve months of service preceding the year in which the termination takes place, and, in addition, the leave accrued in respect of the completed months of service during the year in which the termination takes place."

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