So you leaving Singapore for good? How to settle your annual leave then?

Do you know that as a normal salaried worker, you are entitled to negotiate with your company on how to settle your annual leave balance? For instance, any remainder can be converted into cash. Or pro-rated as you clear leave to the last day of your notice period.

It might be routine company policy, but there’s this good friend of mine who changed job twice during his stay in Singapore. Both times he emptied out his annual leave quota before leaving. But that wasn’t quite the case for another.

When he tendered, there were still ten more annual leave days to be cleared. The HR department asked him to use all the leave days to offset the notice period in order to bring forward the last working day. Hence, the salary was paid right to the last working day with all leave wiped out. Yup, and no excess.

I helped him do a check on the MOM website. And indeed, the terms of “use your annual leave to offset the notice period and take leave” were different items. The first term is one that comes with fully paid annual leave, while it was a big NO for the other term. The terms might look similar in context, but they carry much different meanings!

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It could be that your HR department is trying to mislead and really want all their employees to offset the notice period. So it is best to state the next time you want to leave a company that you want to take leave and not offset notice period.

An HR expert has also kindly given his two cents on this situation. This issue can be brought up with the MOM.

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For example, if your last working day is on the 10th, and you still have three more AL to consume. The true meaning of offset is that your last working day will be on the 7th, but the company MUST still pay you to the 10th. If the HR department play smelly, well, well, well, shoot them straight away!

If you have a letter of employment, it will be a great help to your cause. The MOM officer will straight away ask whether your salaries have been fully paid off. If that’s not the case, they will arrange a meeting with your employer.

Anyone here have any dispute with their company over this? Comment below please!

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