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Annual Leave being 'Absorbed' by the Company After Resignation

Thu, 30 Jun 2016 07:50:20 PM  (Last updated: Fri, 01 Jul 2016 08:16:49 AM)

Hi expert,

I have resigned from my current job on 10th May 2016 and my notice period is 3 months as contracted. I have agreed with my current employer to serve notice for 2 months and my new employer to buy out the remaining 1 month of notice period. However, my new employer changed his mind in the end and decided not to buy out my notice period. So, i went back to my current employer to inform that i am going to serve the full notice period (because no money to buy out). However, as i will be joining a direct competitor of my current employer (current and new employer are in the same business line and compete for the same business/market), my current employer is not keen to keep me any further. So, my current employer has decided to waive the buyout amount of the notice in lieu (the remaining 1 month of my notice period) and at the end of the 2 months notice period is my last working day.

I agree with the waiver of the 1 month notice in lieu. However, my current employer absorbs my ANNUAL LEAVE balance of 6.5 days without my consent. I.e. forfeit my 6.5 days of annual leave balance. May i know if my current employer has the right to absorb my annual leave in the event they waive the buyout amount?

Many thanks in advance.

Looking forward to hear from you soon.



KL Siew
Fri, 01 Jul 2016 08:16:49 AM

You can go to the Labour Department try to claim back your 6 days annual leave pay if you want to. However, the employer might turn around and claim one month salary from you for  one month short notice, I don't know. 

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