Learn about 1st and 2nd monthly leave promotion and annual leave promotion. Also check the step-by-step process of how the promotion works when using flex Smart Annual Leave Promotion!
What is Monthly & Annual Leave Promotion?
Promotion for employees with less than 1 year of service (Reference: Labor Standards Act Article 61 - Promotion of Annual Paid Leave Usage) :
For employees with less than 1 year of service, due to the 2020 Labor Standards Act amendment, monthly leave regardless of the date generated,
expires entirely if unused within 1 year from the hire date.
Monthly Leave 1st Promotion: Promotion is based on the remaining leave days from the 1st through 9th monthly leave days out of 11 total. It takes place 3 months before expiration, and employees must submit a usage plan within 10 days.
Monthly Leave 2nd Promotion: Promotion is based on the remaining leave days from the 10th and 11th monthly leave days. It takes place 1 month before expiration, and like the 1st promotion, employees must submit a usage plan within 10 days.
1. Promotion Based on Accounting Date Grant Basis
Assuming annual leave is granted on January 1 and expires 1 year later, 6 months before expiration,
from July 1 to 10, the company must encourage employees to submit annual leave usage plansFrom July 11 to 20, employees need to submit annual leave usage plans to the company
From July 20 until year-end, employees who submitted plans should use their remaining leave
For employees who did not submit a plan, from July 20 until
2 months before expiration(October 31),the company designates and notifies leave usage dates
2. Promotion Based on Hire Date Grant Basis
The procedure described above was for accounting-date-based annual leave grants.
If you grant annual leave based on hire dates, the schedule may differ.
It's not easy to implement the leave promotion system at the 6-month and 2-month marks before expiration for every employee with different hire dates, and perform the actual promotion activities according to legal requirements.
However, using flex's Smart Annual Leave Promotion feature, you can automate the process, check employee completion status monthly at [Attendance Management] -> [Leave Management] -> [Annual Leave Promotion] tab, and simply complete the documents requiring admin action on behalf of employees and notify them.
I heard annual leave promotion must be done in writing. Does the Smart Annual Leave Promotion feature have legal validity?
In addition to traditional 'paper documents', promotion of annual paid leave usage through electronic documents is recognized when the company has a complete electronic approval system where all document drafting, approval, and execution processes are carried out electronically, with clear individual notice or notification to each employee (Labor Improvement Policy Division-5353, 2011.12.19.)
For more details on the annual leave usage promotion system, please refer to the webinar conducted by the flex team!
You can download the webinar materials.