I have a client whose employee is currently on sabbatical and will return to work in October. The employee who is also having financial difficulties, enquired from my client if she can be paid out some of her annual leave that she has accrued and some of
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
This is not a request that requires guidance with respect to tax, or employees’ tax, legislation or related interpretation notes or guides. It would, in our view require an interpretation of labour law and employment contracts.
In terms of section 22(2), of the Basic Conditions of Employment Act, 1997, “during every sick leave cycle, an employee is entitled to an amount of paid sick leave equal to the number of days the employee would normally work during a period of six weeks.” This seems to support your view that the employee is not entitled to payment in lieu of sick leave, but, as we said, this is best confirmed with a labour law practitioner.