Unused Annual Leave – Your Rights and Legal Obligations

The right to annual leave is one of the fundamental labor rights guaranteed by the Law on Labor Relations in North Macedonia. This right serves a dual purpose: to protect the health and well-being of the employee and to create conditions for an efficient and productive work environment. But what happens when an employee does not use their annual leave? What are the consequences, and how can these rights be safeguarded?

The Right to Annual Leave

The Law on Labor Relations prescribes that every employee is entitled to a minimum of 20 working days of annual leave. This duration can be extended based on factors such as seniority, age, disability, or care for children. Annual leave should be used within the calendar year. If, due to personal or family-related reasons (illness, injury, maternity leave, or child care), the employee is unable to take the leave in time, the unused days may be carried over to the next year, but only until June 30.

It is important to note that the right to annual leave is irrevocable and cannot be waived by mutual agreement. The employer is obligated not only to allow leave but also to ensure the conditions for its utilization. Preventing or continuously postponing the use of annual leave constitutes a violation of employee rights.

Consequences for the Employer When Annual Leave Is Not Granted

If the employer fails to provide the employee with the opportunity to use annual leave, they may face labor inspection and administrative sanctions. The State Labor Inspectorate has the authority to impose monetary fines and require mandatory compliance. In some cases, the employee may initiate legal proceedings and claim compensation for damages.

Compensation for Unused Annual Leave – Exception, Not the Rule

Compensation for unused annual leave is only permitted when the employee requested to use the leave and was denied, and the employment relationship subsequently ended. If the employment ends due to the employee’s fault or voluntary decision (e.g., resignation or mutual termination agreement), compensation is not granted.

Considering this, an employee is entitled to compensation for unused leave only if the employment ends due to the expiration of the employment contract, retirement, or termination due to business reasons. In such cases, the employer is obligated to calculate the remaining unused days and compensate the employee accordingly.

Can the Employer Compensate Unused Leave During Active Employment?

No. According to Macedonian labor legislation, this is not allowed and is considered a violation of the law. The statutory right to annual leave exists to protect the employee’s health and prevent overwork and exploitation.

Case Law and the Role of Legal Counsel

There are numerous cases in Macedonian court practice where employers have been sanctioned for failing to comply with the right to annual leave. Courts generally rule in favor of the employee, especially when evidence shows that the employer obstructed or denied leave.

In such situations, the role of a lawyer is essential. Legal assistance not only ensures proper preparation of claims but also offers security during court or inspection proceedings.

Prevention and Practical Recommendations

Employees should always submit their annual leave requests in writing, preferably via email or official correspondence. Keeping a record of communication is critical in the event of a dispute.

Employers are encouraged to establish an internal policy for annual leave planning, with clear procedures, deadlines, and responsibilities. Maintaining accurate records of both used and unused leave is a legal and managerial priority.

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Final Key Points

Annual leave is not merely a statutory obligation—it is a core part of the right to dignified work. Unused leave creates risks for both the employee and the employer. With timely action, legal consultation, and transparent documentation, both parties can achieve fair and lawful solutions.

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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.