LEAVE ENCASHMENT POLICY

  1. PURPOSE

The purpose of this policy is to regulate the Encashment of Leave, having regard to the statutory provisions regarding leave, the Main Collective Agreement and our Leave Policy.

  1. APPLICATION

This policy applies to all permanent employees of Ga-Segonyana Local Municipality as opposed to contract employees who are on performance based contract.

  1. LEGAL FRAMEWORK
  • The Basic Conditions of Employment Act, No. 75 of 1997.
  • The Main Collective Agreement, SALGBC of 2007.
  • Ga-Segonyana Leave Policy.
  1. POLICY
  2. Any leave in excess of fourty-eight (48) days may be en-cashed should the employee be unable to take such leave as a result of operational requirements.
  3. Any encashment of leave must be approved by the Municipal Manager who will in consultation with the relevant manager consider the application taking into account such factors as affordability and allowing the employee to proceed on leave.
  4. An employee must first take his/her annual leave before any accrued leave can be en-cashed. The 16 and 19 days must be taken and cannot under any circumstances be accrued or en-cashed. The leave must be taken within a period of 18 months from the time that leave became due; this is in line with the Basic Conditions of Employment Act, No. 75 of 1997.
  5. ENCASHMENT OF LEAVE
  6. Employees may, once per leave cycle, en-cash leave equal to their annual leave accrual, provided they have sufficient leave to their creditto cover such encashment.
  7. Capped leave as at 31 December 2003 ( Clause 3. of Main Agreement)

Employees shall either take or en-cash such leave within a period of two (2) years calculated from 1st January 2004.

However, an employee is entitled to retain a maximum of fourty –eight (48) days of accrued leave, which will be paid out in the event of termination of service.

This leave is calculated at the rate of pay as at 31st December 2003.

4.2.3.Capped Leave after 1st January 2004

In terms of the Main Agreement leave must be taken as follows:

  • A five (5) day worker shall take a minimum of 16 days leave; and
  • A six (6) day worker shall take a minimum of 19 days leave.

An employee is entitled to retain a maximum of 48 days accrued leave thereafter, any leave in excess of 48 days may be en-cashed should the employee be unable to take such leave as a result of operational requirement.

Records must be kept where an employee has requested to take annual leave but has not been able to, due to operational constraints. If despite, being afforded an opportunity to take leave, an employee fails, refuses or neglects to take the remaining leave due, such leave shall fall away and be forfeited.

4.3.PAYMENT PROCEDURE

4.3.1.Leave encashment shall only be applicable to permanently employed employees as opposed to contract employees who are on performance based contract.

4.3.2.Applications for encashment of leave must be authorized by the respective Department Manager. Employees shall be entitled to en-cash their leave days once per annum.

4.3.3.Leave encashment shall only be granted if the cash flow situation of the Municipality allows it.

4.3.4.Leave encashment will be paid to employees on their anniversary, which is the date of appointment.

4.3.5.All leave encashment will be processed through the payroll and be paid electronically into the employee’s bank account at the end of the month.

  1. INTERPRETATION OF THIS POLICY

All words contained in this policy shall have an ordinary meaning attached thereto, unless the definition or context indicates otherwise.

The office of the Municipal Manager shall give a final interpretation of this policy in case of a dispute.

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