Can unused annual-leave days be paid out in cash?

Quick answer

  1. No, unused leave days cannot be paid in cash while the contract is still active.
  2. Annual leave must be taken in kind, as time off, not converted into money.
  3. Unused days may be carried over and granted within the next 18 months.
  4. Cash compensation is allowed ONLY upon termination of the employment contract.
  5. On termination, all remaining unused leave days are paid out.

What the law says

  • Art. 146 Labour Code: annual leave is taken in kind, each year.
  • Cash compensation is permitted only upon termination of the individual employment contract.
  • Unused leave is granted within the next 18 months for a justified reason.
  • The employer must actually grant the leave in the year the right arises.
  • Compensatory pay on termination covers all remaining unused days.

Practical examples

  • Example: an employee with 7 unused days at year-end cannot get them in cash while still employed.
  • Example: the 7 days are carried over and must be granted within the next 18 months.
  • Example: on resignation with 7 days left, the employer pays compensatory pay for all 7.
  • Example: at a daily average of 285 lei, compensating the 7 days on termination is ≈ 1,995 lei.

Common mistakes

  • Paying unused leave in cash during the contract instead of actually granting it.
  • Losing unused days at year-end, with no carry-over within 18 months.
  • Not paying compensation for the days remaining at termination.
  • Forcing the employee to give up leave for a sum of money, which is unlawful.

How 4softhr helps

  • 4softhr keeps the exact unused-day balance and blocks cash compensation during the contract.
  • It marks carried-over days and tracks the 18-month deadline for actually granting them.
  • It automatically computes the compensatory pay for days remaining at termination.
  • It alerts managers about days that must be taken before the carry-over expires.
  • It syncs the leave balance with final settlement and payroll in the 4b2b ecosystem.
4b2b.net
Podnikový ekosystém
4conta.ro
Účetnictví
4invoices.net
Aplikace pro fakturaci
4expenses.net
Správa výdajů
4notify.net
Notifikace
4hosting.net
Webhosting
4database.net
Databáze
4buildsite.net
Tvorba webu
4myapp.net
Tvorba aplikací
4avatars.net
AI avatary
4chaty.net
AI chatbot
4webagency.net
Software pro webové agentury
4softedu.net
Weby pro vzdělávání
4softcrm.net
CRM platforma
4softerp.net
ERP systém
4softhr.net
Správa lidských zdrojů
4mystaff.net
Portál zaměstnanců
4myprojects.net
Správce projektů
4mycontracts.net
Smlouvy
4docs.net
Správa dokumentů
4appointments.net
Rezervace
4marketingonline.net
Marketing
4insurance.net
Pojištění
4property.net
Nemovitosti
4lawyers.net
Právní software
4mygarage.net
Autoservis
4driving.net
Autoškoly
4fleet.net
Správa vozového parku
4myevents.net
Události
4therapy.net
Terapie
4clinics.net
Kliniky
4dental.net
Zubní ordinace
4restaurants.net
Restaurace
4beautify.net
Kosmetický salon
4gym.net
Fitness centra
4guards.net
Bezpečnostní firmy
4softvet.net
Veterinární ordinace
4softauto.net
Software pro autobyznys
4construct.net
Stavební firmy
4marketplace.net
Tržiště
4shopy.net
Internetový obchod
4pricing.net
Srovnání cen
4salefood.net
Doručování jídla
4rentify.net
Pronájmy
4transports.net
Doprava
4agencytravel.net
Cestovní kancelář
4hotel.net
Správa hotelu
4ong.net
Správa neziskových organizací