Cassation Case No. 211725
Date: May 6, 2022
Applicant: Ejersa Bake Dangote Cement Factory Drivers’ Trade Ynion – No appearance
Respondent: Bekelcha Beri Employment Agency Plc. – Representative Abichu Adugna appeared
The practice of the employer compensating annual leave in lieu of actual leave, and citing the nature of the employee’s work as preventing the granting of annual leave, does not justify granting requests for compensation in lieu of annual leave while the employment contract remains in effect. Such requests are not admissible.
As stipulated in the Labour Proclamation, obtaining annual leave is the right of the employee and the obligation of the employer. It is also stated that the timing of annual leave shall be implemented based on a leave granting program that considers the employee’s preference and the employer’s work situation. On the other hand, unless explicitly permitted by law, annual leave cannot be converted into cash. Converting annual leave into cash and paying it to the employee is permissible only upon termination of the employment contract and upon verification that the employee has unused annual leave. (Refer to Proclamation No. 1156/2019, Articles 76-78.) From all of this, we understand that the purpose of annual leave is to enable the employee to use the legally permitted annual rest, remain physically and mentally healthy, and work productively for a long period.
Annual leave is converted into cash only when permitted by law. If the employer denied the employee annual leave unlawfully, the employee should enforce his/her right through legal means. However, there is no situation where the employer is compelled to convert the annual leave of an employee who is still working, before the termination of the employment contract is confirmed, and pay it.