The Constitutional Court of the Russian Federation drew the line under the disputes in paying compensations to the employees for all days of unused leave upon resignation. Since now, leaves accumulated for the period not exceeding 18 months before resignation will not “burn down”, and will be subject to compensation.

Many employers used to think that if the employee did not take a leave for several years, the employee, upon resignation, should receive compensation of the leave for the period not exceeding a year and a half before resignation, while other days should “burn down”. In order to support their opinion, the employers referred to the provisions of the Convention No. 132 of the International Labour Organisation ratified by Russia in July 2010. Many courts used to support this approach, and the employees lost judicial disputes.

In its Resolution No. 38-P dated 25 October 2018, the Constitutional Court explained that the Labour Code of the Russian Federation did not limit in any way the employee’s right to receive monetary compensation for all unused leaves upon resignation.

If the employer does not pay compensation upon resignation, the employee shall have a right to recover it in court, irrespective of time that has passed from the expiry of the working year the leave should have been granted for.

The employee may bring the case to the court within the period established by laws: within 1 year after the employer had to pay compensation according to the law.


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