CNA: More Companies Helping Staff Make Better Use of Annual Leave
As COVID-19 closed borders and affected the jobs and livelihoods of many, 3E Accounting’s management shared with Channel News Asia how the company was supporting employees during this difficult period by allowing unused leave to be carried forward for two years, compared with one year previously.
Supporting Workers During Challenging Times
With a steadfast belief that employers have a responsibility to support workers during unprecedented times, 3E Accounting’s management introduced a special provision allowing employees to carry forward unused leave for two years. This meant that employees who were unable to use their 2019 leave could carry it forward into 2021. The provision supported employees by ensuring they were not required to clear their leave immediately or risk forfeiting it.
3E Accounting consultant Sng Qi Wen shared with Channel News Asia that the provision was introduced at an opportune time, as she would become eligible for SkillsFuture credits in 2021. By carrying forward her remaining three days of 2019 leave and combining them with her fourteen days of 2020 leave in 2021, she would be able to enrol in courses aligned with her personal interests.
Feasibility of Leave Encashment Option
As more companies seek to help employees make better use of their annual leave, many businesses are considering alternatives to leave encashment, including allowing unused leave to be carried forward. Management highlighted that leave encashment may not be a suitable option for SMEs, as preserving cash flow is essential for sustaining business operations during the pandemic. SMEs may therefore consider allowing employees to carry forward their unused leave.
While some businesses may be concerned that carried-forward leave will be recorded as a liability on their balance sheets, this amount will ultimately be recognised as income when employees utilise the leave in the following year. At 3E Accounting, the company accepted this liability because it remains committed to promoting work-life harmony among its employees.
