In the field of employment, the unused holiday time are a subject that generates many doubts and questions. From CLB Human Resources we will address in detail how they should be pay for holidays not taken in accordance with Spanish law.
What is the right to a holiday?
The right to leave is enshrined in the Workers' Statutein particular in the Article 38. This right establishes that all workers are entitled to a minimum of 30 calendar days of paid holidays for each year worked. These days include weekends and public holidays, and must be taken within the corresponding calendar year, subject to specific exceptions.
Importance of holidays
Holidays are not only a legal right, but also a necessity for the physical and mental well-being of workers.
Enjoying a period of rest enables employees to recover from accumulated stress, improve their health and increase their productivity and motivation when they return to work, a topic we discussed in detail in 10 keys to motivate your employees.
Exceptions and special cases
Although holiday entitlement must be exercised within the calendar year, there are exceptions. Some of these are:
- Temporary Incapacity (TI)If a worker is on sick leave due to temporary incapacity during the period in which he/she was scheduled to take leave, he/she is entitled to take the leave at a later time. This extension can be up to 18 months after discharge.
- Maternity and PaternityEmployees on maternity or paternity leave can take their leave after the end of their leave, even if this means carrying it over to the following year.
Prohibition of financial compensation
It is important to note that, according to the Workers' Statuteholidays cannot be replaced by financial compensationexcept in exceptional cases such as termination of contract, dismissal or retirement. This principle seeks to ensure that employees actually enjoy your rest and do not renounce it for economic reasons.
Leave accrual and entitlement
Holidays must be taken within the calendar year in which they are generated. The accumulation of leave from one year to the next is not allowed, except in the cases mentioned above. It is essential that companies manage the holiday calendar properly to avoid accumulations and to ensure that workers can exercise their right to rest.
Agreements between employer and employee
The Workers' Statute allows leave entitlement to be agreed between the employer and the employee. This agreement must take into account both the needs of the employee and the operational requirements of the company. In case of disagreement, it is possible to resort to the labour jurisdiction to resolve the dispute.
Proportional holidays
For those workers who have not completed a full year in the company, leave is calculated in proportion to the time worked. This calculation is made by taking as a reference the number of days of annual leave to which a worker who has completed a full year would be entitled. Generally, in Spain, this entitlement corresponds to 30 calendar days of holiday per year worked.
For example, if an employee has worked six months, he/she is entitled to 15 calendar days of holiday (6 months x 2.5 days/month). It is important to note that this calculation must be done accurately to ensure that the employee receives the rest he/she is entitled to by law.
Holiday control and management
Companies should keep strict control of their employees' holiday days. It is advisable to use digital tools and management systems that facilitate monitoring and holiday planning, ensuring that all employees can enjoy their entitlement without affecting the operation of the business.
Consequences of not granting leave
Failure to grant holidays to employees can have legal consequences for the company. If an employee is unable to take his or her holiday due to the company's refusal, he or she can report this situation to the Labour Inspectorate. Ultimately, the worker can bring the case to the Social Court to have his or her right recognised.
Regulation of holiday entitlement
Article 38 of the Workers' Statute regulates holiday entitlement, stating that:
- Leave may not be replaced by financial compensation, except in cases of termination of contract, dismissal or retirement.
- Holidays must be agreed between the employee and the employer.
- Holidays are paid, which means that the worker is paid the same as if he/she were working.
How are holidays calculated?
The calculation of leave is based on the proportion of time worked. The legal minimum is 30 calendar days per year, which is equivalent to 2.5 days per month worked. To make the calculation, the following formula can be used:
Holiday days= (Months worked×2,5)\text{Holiday days} = (\text{Months worked} \times 2,5) Holiday days= (Months worked×2,5)
For example, if a worker has worked for 8 months, he/she will be entitled to a bonus:
8 months×2,5 days/month= 20 days of holiday8, \text{months} = 20, \text{vacation days}. \times 2,5, \text{days/month} = 20, \text{holiday days} 8 months×2,5dıˊas/month=20holiday days
Payment for holidays not taken
The payment of holidays not taken is made in specific cases such as termination of contract, dismissal or retirement. Below, we detail how it is calculated and paid in each of these cases.
Payment of retirement leave
When an employee retires, he/she is entitled to be paid for the days of leave not taken. The calculation is made by multiplying the daily wage by the outstanding holiday days. For example:
If a worker has a monthly salary of €2,000 and retires on 31 May without having taken any holiday:
- Daily wage = 2.000€ / 30 = 66,67€.
- Days of outstanding leave = 5 months ×2,5×2,5×2,5 = 12,5 days
Total to be paid = 66,67€ ×12,5×12,5×12,5 = 833,38€.
Payment of severance pay
In the case of dismissal, the payment of unused holiday entitlement must be included in the severance pay. The calculation is similar to the case of retirement. Let us assume that a worker with a salary of €1,800 per month is dismissed on 31 March:
- Daily wage = 1.800€ / 30 = 60€.
- Days of outstanding holiday = 3 months ×2,5×2,5×2,5 = 7,5 days
Total to be paid = 60€ ×7.5×7.5×7.5×7.5 = 450€.
Holiday pay on termination of contract
When a temporary contract ends, unused holiday pay is also due. Imagine a contract that ends on 30 June with a monthly salary of €1,500:
- Daily wage = 1.500€ / 30 = 50€.
- Holiday days outstanding = 6 months ×2,5×2,5×2,5 = 15 days
Total to be paid = 50€ ×15×15×15 = 750€.
Do unused holidays expire?
In principle, leave must be taken within the calendar year. However, there are exceptions:
- Temporary incapacity: If the holiday coincides with a period of temporary incapacity, it can be taken up to 18 months after discharge.
- Maternity/paternity leave: Leave not taken due to maternity, paternity or breastfeeding leave can be taken on return to work.
Do part-time workers have the same holidays?
Yes, part-time workers are entitled to the same holiday entitlement as those on full-time contracts. The length of the working day does not affect holiday entitlement.
Tips for holiday management within a company
In order to manage holidays efficiently, it is advisable:
- Digitise holiday management: Use digital tools to automate and centralise management.
- Quick access to information: Ensure that both employees and employers have quick access to information on available leave days.
- Efficient communication: Maintain clear communication between all those involved to avoid misunderstandings.
Frequently asked questions
How is the payment of unused holiday pay calculated?
In order to calculate the payment of leave not taken, you must:
- Determine the days of holiday to which the worker is entitled.
- Calculate the days of holiday not taken.
- Multiply the daily wage by the outstanding holiday days.
How are holidays paid in Spain?
Paid holidays in Spain cannot be paid in any way while the employment contract is in force, except in specific situations such as retirement, dismissal or termination of the contract. In these exceptional cases, the payment corresponding to the holidays not taken is made through the "finiquito", a document that includes all the amounts due to the worker. This settlement reflects not only the proportional part of the holidays not taken, but also other concepts such as the salary of the last month worked and possible indemnities.
How is holiday pay paid in the case of a permanent contract?
In the case of a permanent contract, holidays follow the same principle that they cannot be paid while the contract is active. Holidays must be taken within the period agreed between the employee and the employer, without the possibility of financial compensation. However, if the permanent contract is terminated for any of the reasons mentioned above, such as dismissal, retirement or any other cause that leads to the termination of the contract, the payment of the holidays not taken will be included in the severance pay. It is important to note that severance pay is a separate concept that is also included in the settlement, together with other economic rights that the worker has accrued during the employment relationship.
Conclusion
In short, unused leave is a right that must be respected and adequately compensated in specific cases. It is essential that both employees and employers are aware of their rights and obligations in order to avoid conflicts and ensure efficient leave management.