By Lucy Lu,  Lexina Li and Enya Yang King & Wood Mallesons’ Commercila & Regulatory group

陆慧文Annual leave is an important reflection of the right to rest granted by law to employees.  The introduction of the annual leave system has made the taking of holidays a hot topic amongst both employees and employers.

Mr. Zhang, a resident of Zhangjiang, Shanghai, quit his job on 10 March 2012. Four days later, on 14 March 2012, he commenced employment with a new company. For the following five years he worked relentlessly without taking annual leave. At the end of 2016, Zhang’s employers decided not to renew his contract. They refused to compensate him for the five years of annual leave he had accrued whilst working for them. Compensation that we say he is entitled to.

In this article, we answer questions around the implementation of paid annual leave using the case of Mr Zhang as an example.

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