Employee Entitlements

Other employee receivables consist of items such as wage, annual leave pay, overtime pay, and bonus pay.

Wage is one of the essential elements of employment contracts and is at the forefront of employee receivables. According to labor law, wage is defined as the amount provided and paid in cash by the employer or third parties to an individual in return for work. The wage paid in return for work must be in cash. The labor law specifies that weekly rest, national holidays, public holidays, and annual leave pay will be paid based on the basic wage.

Overtime Pay: According to the labor law, the maximum weekly working hours are forty-five hours, and work performed beyond this is compensated with overtime pay. Overtime pay is calculated as one and a half times the normal wage and is subject to a statute of limitations of five years. If desired, employees who work overtime or additional hours have the right to use this time as compensatory time off within six months instead of receiving increased pay.

Annual Leave Pay: This is the amount paid to an employee for unused annual leave entitlement accrued after completing one year of employment. Annual leave pay is calculated based on the employee’s wage at the date of termination of the employment contract and is subject to a statute of limitations of five years.

Bonus Pay: These are additional payments, either in cash or in kind, that may be paid to an employee at specified intervals under the employment contract. Bonus pay can be agreed upon in the contract or may arise through customary practice later on. Claims for bonus pay are also subject to a statute of limitations of five years.