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Labor Law

The Right to Annual Leave and Pay for Unused Leave

Published: 2026-06-18

Labor Law No. 4857 grants an employee who has worked at the workplace for at least one year the right to paid annual leave; this right is guaranteed by law for periods that vary according to the employee's seniority.

Annual Leave Periods

Under Labor Law Art. 53, annual leave periods according to length of service are as follows:

For employees under eighteen years of age and over fifty years of age, this period is at least 20 days.

Procedure for Using Leave

Annual leave is granted at times determined by the employer within the scope of its management right; however, the leave should, as a rule, be granted uninterrupted, at a time requested by the employee and deemed appropriate by the employer. By agreement of the parties, leave may also be used in installments, provided that none of the installments is less than ten days.

Conversion of Unused Leave into Pay

Annual leave cannot be claimed in cash while the employee is working; it can only be used as leave while the employment contract continues. However, when the employment contract ends for any reason, the equivalent of any leave periods not used up to that date is calculated based on the last wage and paid to the employee as leave pay (Labor Law Art. 59). This receivable arises independent of the reason for leaving the job (resignation, justified/valid/unjust termination).

Limitation Period

The claim for unused leave pay is, like other employee receivables, subject to a 5-year limitation period; this period begins to run from the date the employment contract ends.

Conclusion

The right to annual leave does not disappear even if not granted by the employer; it converts into cash upon termination of the employment contract. Correctly calculating unused leave days when leaving a job is a receivable item that should not be forgotten.

You can prepare a source-backed petition for your leave pay receivable using Lawyer Services' Create Petition tool.

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