Paid Leave - What It Is and How to Properly Arrange It

Paid leave is an integral right of every employee, enshrined in labor legislation. It is not only an opportunity to take a break from daily work responsibilities but also an important element of protecting human labor rights.

Paid leave itself is a very important detail for all employees. After all, regular rest contributes to the preservation of physical and psychological health, increases productivity and helps avoid professional burnout. All officially employed citizens have the right to paid leave, regardless of the ownership form of the enterprise, type of activity, or position.

Its duration, terms of granting, and procedures for approval are regulated by the Labor Code of Ukraine (Labour Code) and other normative acts. For many employees, the question of how to properly arrange leave, when it can be taken, and how payment is made is relevant, as mistakes in preparing documents or misunderstandings with the employer can lead to the loss of part of the earnings or shifting rest periods.

What is Paid Leave?

Paid leave is a period during which an employee is exempted from performing their labor obligations while retaining their average earnings. In other words, a person can rest without losing income. This right is granted to every officially employed worker after a certain period of work, usually not less than six months of continuous service in one enterprise. The main purpose of paid leave is to provide an opportunity for recovery, maintain employability, and overall health.

Leave is regulated by Articles 74–84 of the Labor Code of Ukraine and the Law of Ukraine "On Leave". The documents stipulate that every employee has the right to an annual basic paid leave lasting no less than 24 calendar days. For certain categories of employees - for example, pedagogical, medical, or government officials - longer leave is provided. Paid leave can be granted fully or in parts, but one of them must be at least 14 consecutive calendar days.

Additionally, the law guarantees that during the leave period, the employee's job and position are preserved. The employer cannot dismiss an employee while they are on leave. Payments for the leave period must be made no later than three days before it starts, so that the employee can plan their rest without financial difficulties.

How Paid Leave Differs from Unpaid Leave

Paid leave differs from unpaid leave primarily in that the employee receives a salary during its duration in the form of average earnings. Unpaid leave (often referred to as "leave at one's own expense") does not involve payments. In this case, the employee has the right to be absent from work with the employer's consent, but without retaining their salary.

Reasons for arranging unpaid leave can vary: personal circumstances, caregiving for relatives, studying, the need for rest outside the prescribed time, etc. It is granted only upon the employee's request and with the administration's agreement. The duration of such leave usually does not exceed 15 calendar days per year (exceptions are provided by law for certain categories of citizens).

Another important distinction is that paid leave is included in the labor record, which affects the pension size and other social guarantees, while days of unpaid leave are not counted towards the record. That is, if a person takes leave without retaining their salary, this period is not considered when calculating total labor experience.

Also, paid leave is mandatory - the employer is obliged to grant it every year, even if the employee does not submit a request (according to the leave schedule). Unpaid leave, however, is entirely a voluntary initiative of the employee. Thus, paid leave is a guarantee of social protection, while unpaid is rather a temporary compromise between the employee and employer.

Main Types of Paid Leave

In Ukraine, several types of paid leave are legally confirmed. The most common is the annual basic leave granted to all employees regardless of position or type of employment. Its duration is at least 24 calendar days, but for some professions, longer terms are provided: for education workers - up to 56 days, for minors - 31 days, for persons with disabilities - from 26 to 30 days.

In addition to the basic leave, there are several additional paid leaves. For example, extra leave for working under harmful or dangerous working conditions can last from 4 to 35 days, depending on the degree of harmfulness. Additional leave for special working conditions (for example, for employees with irregular working hours) usually amounts to 7 days.

Social paid leaves are also provided, which include: leave due to pregnancy and childbirth, leave for childcare up to three years, as well as additional days for employees who have children or children with disabilities. Social leaves are fully or partially paid from the state budget or employer, depending on the circumstances.

Moreover, a creative leave is also highlighted, which is granted for completing scientific research, writing dissertations, or textbooks. Its duration is determined individually, but it is also paid.

How Paid Leave is Calculated and Arranged

The procedure for arranging paid leave involves several mandatory steps. First, the employee must submit a request specifying the desired dates of rest. Then, the employer issues an order to grant the leave, based on which the accounting department calculates the average salary for the leave period.

The average salary is calculated based on earnings for the last 12 months of work. All payments are considered - salary, bonuses, allowances, etc. The total is divided by the number of actually worked days and then multiplied by the number of leave days. The resulting amount is the payment for the rest period.

By law, the employer is obliged to pay leave compensation no later than three days before the start of the leave. If the employee does not receive the funds in time, they have the right to demand the postponement of the leave start date.

It is also important to remember that the leave schedule is usually compiled in advance - usually at the beginning of the calendar year - and coordinated with the trade union or the employee themselves. The employer cannot deny the grant of leave without valid reasons.

In case of dismissal, the employee is compensated for all unused days of paid leave. This is another guarantee that no part of the earned rest will be lost.

Thus, paid leave is not only an opportunity to take a break, but also a legal right of every employee that protects their interests and ensures social stability. Proper documentation, adhering to deadlines, and knowing one’s rights help avoid misunderstandings and make the rest period genuinely enjoyable and carefree.

The Impact of Paid Leave on the Productivity and Motivation of Employees

Paid leave significantly affects not only employees' well-being but also the overall effectiveness of the company. A person who regularly rests returns to their duties with renewed strength, ideas, and inspiration. Breaks in work help reduce stress levels, avoid emotional burnout, improve concentration, and creativity. Employees who are able to fully rest typically demonstrate higher quality of task execution and handle the workload better after returning from leave.

From the employer's perspective, providing paid leave is an investment in human capital. Companies that adhere to labor legislation and encourage their employees to take regular breaks have lower turnover rates and higher staff loyalty. When an employee sees that their needs for personal time and health are respected, they become more motivated and responsible in performing work tasks.

Moreover, paid leave fosters the formation of a positive image of the company as an employer. This is important for attracting new specialists, especially the younger generation, for whom work-life balance is one of the key criteria when choosing a job. Employees who have the opportunity to rest without fearing loss of income or position are less sick, cope with stress better, and demonstrate stable productivity throughout the year.

In some companies, leave is even viewed as part of the motivation system - employees are offered additional days off for successful results or long service. Thus, paid leave becomes not only a social guarantee but also an important element of corporate culture, influencing employee satisfaction and their engagement in the work process.

Mistakes in Granting and Arranging Paid Leave

Despite clear legislative regulation, mistakes often occur during the granting or arrangement of paid leave, which can lead to misunderstandings or even labor disputes. One of the most common is violation of the deadlines for paying leave compensation. The law requires that the employee receives funds no later than three days before the start of leave, however, some employers ignore this provision, creating financial inconveniences for the employee.

Another typical mistake is the absence of an order for leave or incorrectly completed documents. Any leave must be confirmed by the appropriate order, issued on the basis of the employee's request. Without this document, the leave may not be considered officially granted, and the leave compensation may be wrongfully paid.

Problems also arise when an employer changes the leave dates without the employee's consent. According to the law, postponement of leave is only possible in exceptional cases and must be agreed with the employee. Forced changes in the schedule or refusal of leave without justified reasons violate labor rights.

Another common mistake is the incorrect calculation of average earnings. Often, accountants fail to take into account certain payments, bonuses, or allowances, leading to a reduction in the amount of leave compensation. Such inaccuracies can cause conflicts or inspections by the labor inspection.

It is also important to avoid situations where employees do not use their leave for several years, accumulating days that are then lost or postponed without proper coordination. The law guarantees that every employee has the right to rest each year, and depriving them of this right cannot be done even by mutual agreement of the parties.

Thus, proper arrangement of paid leave is not only a matter of formality but also an indicator of responsible attitude towards labor relations. For the employer, it is a way to avoid legal risks, while for the employee, it is a guarantee of fair treatment and protection of their rights.