Annual leave accrual under BCEA section 20

Section 20 of the Basic Conditions of Employment Act sets the minimum paid annual leave, how it accrues, when it must be granted and what you may not do with it, each rule cited, plus a worked example.

The short answer

Under the Basic Conditions of Employment Act 75 of 1997 (BCEA) s.20(2), every employee working 24 hours or more a month gets at least 21 consecutive days' paid annual leave per 12-month leave cycle, or by agreement one day per 17 days worked (s.20(2)(b)) or one hour per 17 hours worked (s.20(2)(c)): about 15 working days a year on a five-day week. It must be granted within six months after the cycle ends (s.20(4)), is paid at normal remuneration (s.21), and cannot be cashed out except on termination (s.20(11) read with s.40).

Who it covers and how the cycle runs (s.19 and s.20(1))

Chapter Three of the BCEA applies to every employee except one who works less than 24 hours a month for you (s.19(1)). Leave above the statutory minimum follows your contract or policy, not the Chapter (s.19(2)). A bargaining council agreement may vary annual leave but not below two weeks (s.49(1)(c)); our bargaining council returns guide explains which councils cover whom.

An annual leave cycle is 12 months of employment with the same employer, from the start date or the end of the previous cycle (s.20(1)). It follows the start date, not the calendar year; aligning staff to January is fine by agreement if nobody loses days.

Three ways to calculate the entitlement (s.20(2))

MethodFive-day weekSix-day week
s.20(2)(a), the default: 21 consecutive days per cycle15 working days18 working days
s.20(2)(b), by agreement: 1 day per 17 days worked or entitled to be paidabout 15.4 days (261 ÷ 17)about 18.4 days (313 ÷ 17)
s.20(2)(c), by agreement: 1 hour per 17 hours worked or entitled to be paid137.6 hours on a 45-hour week (2,340 ÷ 17)the same 137.6 hours

Consecutive days are calendar days, so weekends inside the block count. Accruing 1.25 days a month gives five-day staff 15 days and matches the default, but short-changes six-day staff by three days a year. Under the agreed 1-in-17 method, days "entitled to be paid" include public holidays and paid leave, so a full year yields slightly more than 15.

When leave accrues and must be taken (s.20(3), (4) and (10))

Strictly, under the default method the full 21 days falls due when the cycle ends, and you then have six months to grant it (s.20(4)). Letting staff take leave as it accrues is fine provided each employee ends the cycle with at least the minimum.

  • A cycle's leave may be taken on consecutive days (s.20(3)); you cannot insist on odd days.
  • Timing is by agreement, failing which the employer decides (s.20(10)), so a December shutdown is lawful; a new employee short of days takes leave in advance or unpaid leave, by agreement (s.34 bars deducting it from pay without written consent).
  • The six-month duty is yours; a labour inspector can enforce it by compliance order (s.69).

What if it is not taken in time?

The Act does not say the leave lapses, but the Labour Court has treated statutory leave not taken within the six-month window as forfeited (Ludick v Rural Maintenance (Pty) Ltd, 2014). Do not rely on that: flag untaken statutory leave at month nine and put a quarterly review on your compliance calendar.

What an employer may not do (s.20(5) to (11))

  • Require or permit annual leave during any other Chapter Three leave, such as sick or maternity leave, or during a notice period (s.20(5)); see notice periods under s.37.
  • Require or permit work during annual leave (s.20(9)), which includes tolerating work email on holiday.
  • Pay instead of granting statutory leave, except on termination (s.20(11)). Days above the minimum may be bought back if your policy allows (s.19(2)).

You must let an employee on unpaid leave take annual leave instead if they ask in writing (s.20(6)), and you may deduct occasional paid leave granted at the employee's request (s.20(7)). Record both in the leave register you keep with your s.31 records; our labour law compliance checklist lists the rest.

Public holidays during leave (s.20(8))

If a public holiday falls on a day the employee would ordinarily have worked during annual leave, you must grant an additional day of paid leave (s.20(8)), so do not deduct it from the balance. A Sunday holiday moves to the Monday under the Public Holidays Act 36 of 1994; the day itself is paid under s.18.

Leave pay (s.21 and s.35)

Leave pay is at least what the employee would have earned by working the leave period, at the rate in force immediately before the leave (s.21(1)), paid before the leave starts or, by agreement, on the usual pay day (s.21(2)). Section 35 gives the conversions: a wage is calculated by reference to the hours the employee ordinarily works (s.35(1)), with 45 hours a week and nine hours a day deemed unless fewer are ordinarily worked (s.35(2)); monthly is four and one-third times weekly (s.35(3)). Daily and hourly rates follow by dividing by the days and hours ordinarily worked. Where pay includes commission or fluctuates significantly, average the preceding 13 weeks (s.35(4)). The Ministerial Determination under s.35(5) lists which allowances count (current notice on labour.gov.za).

Worked example: a monthly-paid employee

Thandi earns R20,000 a month, Monday to Friday. She started on 1 March 2025, so her first cycle runs to 28 February 2026 (s.20(1)). Her contract uses the default: 21 consecutive days, for her 15 working days.

  1. She takes Monday 20 April to Sunday 10 May 2026: 21 consecutive days, 15 working days.
  2. Freedom Day (Monday 27 April) and Workers' Day (Friday 1 May) fall inside on days she would have worked, so under s.20(8) the register deducts 13 days, not 15. She returns on Monday 11 May with two days in hand, or by agreement on Wednesday 13 May.
  3. Leave pay is her ordinary salary: April and May pay slips show R20,000 each, the two holidays paid under s.18.
  4. Daily rate: R20,000 ÷ 4⅓ = R4,615.38 a week; ÷ 5 = R923.08 a day (s.35).
  5. If she later resigns with six days untaken, s.40(b) requires 6 × R923.08 = R5,538.46 in her final pay, plus the incomplete cycle at one day per 17 days worked (s.40(c), after four months' service).

Section 40 applies on any termination, including dismissal for misconduct, at the final rate; employees under the BCEA earnings threshold can claim unpaid leave at the CCMA (s.73A, current threshold on labour.gov.za).

Sick leave and family responsibility leave are separate (s.22 and s.27)

Neither comes out of the annual leave balance, and s.20(5)(a) stops you forcing annual leave to be used instead.

Sick leave (s.22)

Sick leave runs on its own 36-month cycle (s.22(1)): six weeks' normal working days per cycle, so 30 on a five-day week (s.22(2)). If an employee falls ill during annual leave, s.20(5)(a) is generally read to mean the sick days should be treated as sick leave (subject to s.23 proof) and the annual leave credited back; set this out in your leave policy rather than relying on the Act alone. Once sick leave runs out, further absence is unpaid unless the employee asks in writing to use annual leave (s.20(6)).

Family responsibility leave (s.27)

Three paid days per annual leave cycle for an employee with over four months' service working at least four days a week (s.27(1) and (2)): for a sick child, or the death of a spouse, life partner, parent, grandparent, child, grandchild or sibling (adoptive included). Reasonable proof may be required (s.27(5)); unused days lapse at the end of the cycle (s.27(6)). Birth moved to parental leave (s.25A) under the Labour Laws Amendment Act 10 of 2018.

Frequently asked questions

How many days' annual leave does the BCEA give?

At least 21 consecutive days on full pay per 12-month leave cycle (s.20(2)(a)): 15 working days on a five-day week, 18 on a six-day week. By agreement, one day per 17 days worked or one hour per 17 hours worked instead (s.20(2)(b) and (c)).

Does annual leave accrue monthly under the BCEA?

Not strictly. The full entitlement falls due at the end of the cycle and must be granted within six months after it (s.20(4)). Accruing 1.25 days a month and letting it be taken as it accrues is permitted, provided the employee gets at least the minimum.

Can an employee be paid out instead of taking annual leave?

No. Section 20(11) prohibits paying instead of granting statutory leave, except on termination, when s.40(b) and (c) require untaken and pro rata leave to be paid out. Leave above the minimum follows your contract (s.19(2)).

What happens to annual leave not taken within six months of the cycle?

The employer must grant it within six months after the cycle ends (s.20(4)). The Labour Court has held that statutory leave not taken in that window may be forfeited, with a s.40 pay-out covering the current and preceding cycle only. Do not rely on that; schedule the leave.

Sources

Compliance Radar's labour law assistant answers leave questions like these with the section cited, drawing on the BCEA and your own contracts, and its policy builder turns your accrual method, cycle and shutdown rules into a signed leave policy. See how it works on the home page or contact us. More answers at /guides.

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