Employees who attended at least 80 percent of the working days become entitled to annual paid leave (“the 80-percent requirement”), but the calculation of working days can be confusing if they did not work for reasons attributable to the company or because of childcare leave. This article offers hints about irregular cases.
[1] How to confirm 80-percent requirement
Whether the 80-percent requirement is met is determined by the attendance rate, which is calculated by dividing the number of days attended by the number of total working days (days employees are required to work; the total number of working days excluding holidays set by the work rules, etc.) Work on holidays is excluded from the number of days attended, while late arrival or early leave are disregarded as long as the employee worked on such days.
In calculating the attendance rate, there are days to be excluded from the denominator, the total number of working days, and from the numerator, the number of days attended, respectively. Following are the days to be excluded from the denominator, the total number of working days.
1. Days when employees did not work for reasons attributable to the company
2. Days when employees did not work due to justifiable strike or other disputes
For example, in the case a company decided to suspend operations to prevent the spread of the coronavirus, the days closed are considered correspond to 1 above and excluded from the total number of working days in calculating attendance rates.
Meanwhile, the following cases shall be included in both the days attended and total working days.
1. Days-off taken for the recovery from work-related injuries or illnesses
2. Days of maternity leave prescribed in the Labor Standards Act
3. Days of childcare or nursing-care leave based on the Childcare and Caregiver Leave Act
4. Days of annual paid leave
If an employee was on childcare leave throughout the calculation period, all the days are included in the total working days and also in the days attended, making the attendance rate 100 percent. In such case, the employee shall be given annual paid leave, even if the person did not actually work.
[2] Treatment of special leave
There is no legal rule on special leave set by companies or holidays taken to care for a sick child or other family member. Each company has to make rules on how to treat these cases in calculating attendance rates. In general, these days are considered to have been worked.
If the attendance rate is less than 80 percent, the employee will not be granted annual paid leave. However, if the employee meets the requirement in the following year, the year in which the requirement was not met must be included in the length of employment in determining the number of annual leave days. Since employees often pay close attention to rules on granting or taking annual leave, please manage carefully.
[Reference]
Labour Ministry “Rules on the number of annual leave days”
https://www.mhlw.go.jp/new-info/kobetu/roudou/gyousei/dl/140811-3.pdf
