Measures for the Implementation of Paid Annual Leave for Enterprise Employees

(Promulgated by Order No. 1 of the Ministry of Human Resources and Social Security on September 18, 2008 and effective as of the date of promulgation)

Article 1 These Measures are formulated for the purpose of implementing the Regulations on Annual Leave with Pay for Employees (hereinafter referred to as the Regulations).

Article 2 These Measures shall apply to enterprises, private non-enterprise units, individual industrial and commercial households with employees and other units within the territory of the People's Republic of China (hereinafter referred to as employers) and employees who have established labor relations with them.

Article 3 Employees who have worked continuously for more than 12 months shall enjoy paid annual leave (hereinafter referred to as annual leave).

Article 4 The number of days of annual leave shall be determined according to the accumulated working hours of employees. The period during which an employee works in the same or different employing units, as well as the period during which the employee is deemed to work in accordance with laws, administrative regulations or the provisions of the State Council, shall be counted as the cumulative working time.

Article 5 If an employee newly enters the employing unit and meets the provisions of Article 3 of these Measures, the number of annual leave days in the current year shall be converted and determined according to the remaining calendar days in the unit, and the part less than one full day after conversion shall not enjoy the annual leave.

The conversion method provided for in the preceding paragraph is: (the number of calendar days remaining in the unit in the current year ÷ 365 days) x the number of days of annual leave that the employee should enjoy throughout the year.

Article 6 The family visit leave, marriage and funeral leave, maternity leave and other holidays stipulated by the state enjoyed by employees in accordance with the law, as well as the period of work stoppage and pay due to work-related injuries, shall not be included in the annual leave.

Article 7 If the number of days of winter and summer vacation is more than the number of days of annual vacation, the employee shall not enjoy the annual vacation of the current year. If the number of days of winter and summer vacation enjoyed by employees is less than the number of days of annual vacation due to work needs, the employing unit shall arrange to make up for the number of days of annual vacation.

Article 8 Employees who have already enjoyed the annual leave of the current year, and one of the circumstances specified in (II), (III), (IV), and (V) of Article 4 of the Regulations occurs during the year, they will not enjoy the annual leave of the next year.

Article 9 The employing unit shall make overall arrangements for annual leave according to the specific conditions of production and work and the wishes of the employees themselves. If the employer is unable to arrange annual leave for employees due to work needs or arrange annual leave across one year, it shall obtain the consent of the employees themselves.

Article 10 If the employer does not arrange annual leave with the consent of the employee or arranges that the number of days of annual leave for the employee is less than the number of days of annual leave that should be taken, the employer shall pay 300 of the daily wage income for the number of days of annual leave that should be taken, including the wage income paid by the employer during the normal working period of the employee.

If the employer arranges the employee to take annual leave, but the employee does not take annual leave due to his own reasons and proposes in writing, the employer may only pay the salary income during the normal working period.

Article 11 The daily wage income for calculating the remuneration for unpaid annual leave shall be converted according to the monthly wage of the employee himself divided by the number of days of monthly salary (21.75 days).

The term "monthly wage" as mentioned in the preceding paragraph refers to the average monthly wage of an employee after excluding overtime wages for the 12 months before the employer pays his unpaid annual leave wages. If the employer has worked for less than 12 months, the average monthly salary shall be calculated according to the actual month.

During the annual leave, employees enjoy the same wage income as during normal work. For employees who implement the piecework wage, commission wage or other performance wage system, the method of calculating and issuing daily wage income shall be implemented in accordance with the provisions of the first and second paragraphs of this article.

Article 12 When the employer and the employee terminate or terminate the labor contract, if the employee is not arranged to take the full number of days of annual leave in the year, the number of days of untaken annual leave shall be converted according to the working time of the employee in the year and the salary of untaken annual leave shall be paid, but the salary of untaken annual leave shall not be paid for the part of less than one full day after conversion.

The conversion method stipulated in the preceding paragraph is: (the number of calendar days in the unit in the current year ÷ 365 days) x the number of days of annual leave that the employee should enjoy throughout the year-the number of days of annual leave that have been arranged in the current year.

If the employer has arranged annual leave for employees in the current year, the number of days of annual leave that should be converted will not be deducted.

Article 13 If the number of days of annual leave and the wages and remuneration for untaken annual leave stipulated in the labor contract or collective contract or stipulated in the rules and regulations of the employing unit are higher than the legal standards, the employing unit shall implement them in accordance with the relevant agreements or provisions.

Article 14 Employees of a labor dispatch unit who meet the conditions specified in Article 3 of these Measures shall enjoy annual leave.

If the number of days of labor remuneration paid by the labor dispatch unit according to law is more than the number of days of annual leave that the dispatched employee should enjoy in the whole year during the period of no work within the term of the labor contract, he shall not enjoy the annual leave of the current year; if it is less than the number of days of annual leave that he should enjoy throughout the year, the labor dispatch unit and the employing unit shall negotiate and arrange to make up for the number of days of annual leave of days of annual leave of dispatched employees.

Article 15 The labor administrative departments of the local people's governments at or above the county level shall supervise and inspect the implementation of the Regulations and these Measures by the employing units in accordance with the law.

If the employer does not arrange for employees to take annual leave and does not pay the unpaid annual leave wages in accordance with the regulations and these measures, the labor administrative department of the local people's government at or above the county level shall order it to make corrections within a time limit according to its functions and powers; if it fails to make corrections within the time limit, in addition to ordering the employer to pay the unpaid annual leave wages, the employer shall also pay compensation to the employees according to the amount of the unpaid annual leave wages; for those who refuse to implement the administrative decision on the payment of wages and compensation for untaken annual leave, the labor administrative department shall apply to the people's court for compulsory enforcement.

Article 16 If a labor dispute arises between an employee and the employer over annual leave, it shall be handled in accordance with the provisions on the handling of labor disputes.

Article 17 Except as otherwise provided by laws, administrative regulations or the State Council, government agencies, institutions, social organizations and employees that have established labor relations with them shall be implemented in accordance with these Measures.

The annual leave of crew members shall be carried out in accordance with the the People's Republic of China Crew Ordinance.

Article 18 "Year" in these Measures refers to the Gregorian calendar year.

Article 19 These Measures shall enter into force as of the date of promulgation.