The annual leave allowance is a legal obligation, not a privilege — a right to payment that expires after three years

In practice, cases are increasingly appearing where employees do not receive the annual leave allowance (also known as K-15), and some mistakenly believe that it is a “privilege” dependent on the employer’s discretion. In fact, the allowance is a legal obligation, not a privilege that the employer can grant or refuse at will. It is provided for under the Law on Labor Relations and the General Collective Agreement for the Public and Private Sectors, and like most monetary claims, it is subject to a statute of limitations, which in this case is three years.

🔹 What is the annual leave allowance ?

The allowance is a payment right belonging to every employee who has completed six full months of uninterrupted service within the calendar year with the same employer. Payment of the allowance is linked to the use of annual leave and is intended to provide financial support to the employee during that leave.

🔹 How much is the allowance?

The minimum amount of the allowance for employees in the private sector is 40% of the base, while for employees in the public sector it is 30% of the base.

The base for calculating the allowance represents the average monthly net salary per employee in North Macedonia paid over the last three months, unless a higher amount is provided by a collective agreement or internal act.

This means that the allowance paid to an employee cannot be lower than the average monthly net salary per employee in North Macedonia over the last three months.

🔹 The obligation lies with the employer

The employer has a legal obligation to pay the allowance, regardless of whether it is explicitly stated in the employment contract. Non-payment constitutes a violation of the employee’s rights and may be subject to proceedings before the State Labor Inspectorate or a court.

🔹 The allowance expires after three years

It is important for employees to know that the right to receive the allowance expires three years after the date it was due. This means that if an employee has not received the allowance and has not submitted a written reminder or claim within this period, they lose the right to pursue it in court.

Although the Law on Obligations provides a general statute of limitations of five years for claims, for monetary claims arising from employment, a special three-year statute of limitations applies according to the Law on Labor Relations. When the principal claim expires, any related claims, such as interest, benefits, costs, and contractual penalties, also expire.

Example: If the allowance for 2021 was not paid by the end of that year, the right to payment expires at the end of 2024.

 Conclusion

For employees, it is important to keep payslips and payment records. If the allowance is not paid, they should request it in writing from the employer. If there is no response, a complaint can be filed with the labor inspectorate or a lawsuit brought before the competent court.

For employers, regular payment of the allowance is not only a legal obligation but also a matter of maintaining a correct and fair relationship with employees, building trust, satisfaction, and a better working environment.

The right to the annual leave allowance, or any monetary claims arising from employment, is a fundamental right of every worker, guaranteed by law. Employers have a legal duty to fulfill these obligations.

For employees, it is crucial to be aware of their rights and the three-year statute of limitations. If the allowance is not paid within this period, and the employee has not claimed it, they lose the right to enforcement, meaning the employer may invoke the statute of limitations and refuse payment.

Note: This text is prepared solely for informational purposes and should not be considered legal advice or guidance for specific actions. Legal matters are complex and each case has its own specifics that must be considered individually. Therefore, we recommend consulting a qualified professional – a lawyer who can find a tailored solution to your legal issue.