Must Annual Leave Pay Be Paid Before Leave Begins?

Article 57 of Labor Law No. 4857 requires pay for the annual leave period to be paid in advance, or provided as an advance payment, before leave begins. This decision addressed the consequences of failing to meet that obligation rather than simply paying on the normal payday.

Why the issue reached the Court

Two civil chambers of the İzmir Regional Court of Appeal had reached different conclusions. One regarded the failure to pay before annual leave as just cause for termination by the employee. The other rejected that conclusion because the employee had not separately requested advance payment. The matter was referred to the 9th Civil Chamber to resolve the divergence.

The Court of Cassation’s decision

The Court relied on Article 57 and held that pay for the leave period must be paid in advance, or as an advance payment, before leave starts. The obligation was not conditional on a separate employee request. It resolved the disagreement in favour of the approach recognising the employer’s failure as just cause for termination by the employee. The decision was unanimous and final.

Must the employee request advance payment?

No. The statutory obligation does not depend on the employee making a prior request. An employee’s failure to ask specifically for annual leave pay in advance does not remove the employer’s obligation.

What this means for employers

Annual leave administration involves payment timing as well as leave forms and day counts. Employers, particularly those with large workforces, should coordinate leave start dates with payroll and payment processes. The decision clarifies the practical effect of the statutory advance-payment requirement.

This article provides general information. Each case must be assessed in light of its own circumstances.

Tevfik Özkan