Under current regulations, cash compensation for unused vacation time should be paid on the date of termination of the employment contract. A change is expected to come into effect soon, according to which the payment date for vacation time compensation will be the same as the salary payment date.
Equivalent
An employee is entitled to a cash equivalent if he or she has not used his or her leave entitlement due to the termination or expiration of the employment relationship.
Although the regulations do not directly indicate the deadline for payment of the equivalent, according to the Supreme Court, Article 171 § 1 of the Labor Code can be inferred beyond any doubt that the right to the equivalent becomes due on the date of termination (expiration) of the employment relationship (judgment of the Supreme Court of 1 March 2017, II BP 11/15, LEX No. 2258035).
Change
The obligation to pay compensation on the day of termination of employment often caused practical problems, including the need for employers to prepare an additional payroll.
On December 4, 2025, the Sejm passed an act amending the Labor Code and the Act on the Company Social Benefits Fund. Under the act, employers will pay the cash equivalent on the salary payment date established by the employer.
An exception will be when the salary payment deadline falls before the date of termination or expiration of the employment relationship. In such a case, the payment of the compensation should be made within 10 days of the date of termination or expiration of the employment relationship.
Status of legislative work
The Act has been submitted to the President and the Speaker of the Senate. It will enter into force 14 days after its publication.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of December 18, 2025.
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