On this page
Annual leave in Mauritius is an employer obligation, not a favour. Once a company hires its first employee, it must grant leave, pay for it correctly and keep proof that it did so. This guide covers the three entitlements employers most often get wrong: annual leave, sick leave and public holidays. It also explains how each one appears on a payslip and in the company's records.
The general framework is the Workers' Rights Act 2019, together with the remuneration regulations that apply to the employee's sector. Precise numbers of days, qualifying periods and pay multipliers differ by contract type, sector and hours worked, and they are amended from time to time. This page does not quote them. Confirm the current figures with the official texts or with an adviser before you rely on them.
Why leave is a company-level compliance topic
Leave is often treated as an HR detail. In practice it sits at the junction of three areas that regulators and auditors look at:
- Employment law: the employee's entitlement, and the employer's duty to grant it.
- Payroll: how leave pay is calculated and shown, and how unused leave is settled on exit. See payroll in Mauritius for the wider picture.
- Company records: leave balances, approvals and payslips are part of the files a company must be able to produce. See company records and retention.
A director who signs off the accounts is also responsible for the company's liabilities, and accrued leave is one of them. This is why leave belongs in the yearly routine described in the compliance calendar.
The three entitlements at a glance
| Point | Annual leave | Sick leave | Public holidays |
|---|---|---|---|
| What it is | Paid rest earned through service | Paid absence when ill, usually with proof | Days declared by law as non-working |
| Who decides timing | Agreed between employer and employee | The employee's illness | The calendar fixed by law |
| Evidence needed | Leave request and approval | Medical certificate in the form the law expects | Roster or payroll record |
| Payroll effect | Normal pay continues | Normal pay continues within the entitlement | Pay depends on whether the day is worked |
| Typical employer error | Refusing leave without a record, or never settling a balance | Treating a late certificate as grounds to dock pay | Paying a worked holiday at the ordinary rate |
The exact number of days and the pay rules are in the legislation. The table shows the structure, which is what you need to build a reliable process.
Annual leave: what employers must do
Granting leave
Annual leave is paid time away from work that an employee earns by service. The employer cannot treat it as optional, and cannot replace it with extra pay while the employee is still working, except where the law expressly allows it.
Good practice for an employer:
- Keep a written leave policy that matches the contract and the law.
- Record each request, the decision and the dates taken.
- Agree dates in good time. An employer may reasonably manage when leave is taken, but cannot indefinitely postpone it.
- Review balances during the year, not only at year end.
What counts as pay during annual leave
An employee on annual leave is paid as if they were working. For employees on fixed monthly pay this is straightforward. For employees whose earnings vary (commission, overtime, shift allowances), the employer must check which elements the rules treat as part of normal pay. This is a common source of underpayment and it is worth getting an adviser to confirm the method once, then apply it consistently.
Unused leave
Unused leave raises two separate questions: whether it can be carried forward, and what happens when the employment ends. Both depend on the Workers' Rights Act 2019, the contract and sometimes a collective agreement. When employment ends, outstanding leave is usually settled in the final payment. Our guide on ending an employment contract explains how notice and final amounts fit together.
Sick leave: handling absence fairly
Sick leave is paid absence for genuine illness. The employer is entitled to evidence, and the employee is expected to inform the employer promptly.
A sound process has four elements:
- The employee tells the employer as early as practicable, using the channel set out in the policy.
- A medical certificate is provided within the time the policy and law expect.
- The absence is recorded separately from annual leave, so that neither balance is distorted.
- Pay for the absence follows the statutory rule and the contract.
Keeping sick leave and annual leave apart
Never deduct a sick day from annual leave without a clear legal basis. Doing so quietly reduces an employee's entitlement and creates a claim. Separate codes in your payroll system or spreadsheet make the difference visible.
Confidentiality
A medical certificate is personal health data. An employer that stores it must treat it as such. Restrict access to the people who need it, and do not circulate diagnoses. A company that processes employee data as a controller must also register under the Data Protection Act 2017; the fees and validity are in the key figures below.
Public holidays and pay
Public holidays are days the law declares as non-working. Whether an employee is paid ordinary pay, extra pay or given time off in lieu depends on three things:
- whether the employee works on that day,
- how the employee is paid (monthly, weekly, daily or hourly),
- any sector remuneration regulations or contract terms that are more favourable.
For employees on a monthly salary who do not work on the holiday, pay normally continues unchanged. For those who do work, the rules on increased rates or compensatory rest apply. Because sector regulations differ, check the one covering your employees. Rules on minimum pay and working hours are outside this page; they are covered in wages regulations and employer obligations.
Hospitality and shift work
Employers that operate on public holidays (hotels, restaurants, retail, security) have the most exposure, because worked holidays are routine rather than exceptional. The practical points are covered in payroll for hotels and restaurants. Build the holiday calendar into the roster at the start of the year and flag these days in payroll in advance.
How leave appears in payroll
Leave does not change the structure of the monthly run, but it affects what you must record. In a normal cycle:
- Leave days taken are logged against the correct category.
- Pay for those days is included in gross pay.
- The payslip shows the period and the amounts clearly. See what a payslip must contain.
- Statutory deductions and contributions are calculated on the resulting gross pay, as described in PAYE and the guides on contributions.
The step-by-step monthly sequence is in running monthly payroll. Leave information should be confirmed before the run is closed, not corrected afterwards.
- Request
The employee submits dates and leave type in writing or through the HR system.
- Decision
The manager approves or proposes other dates, and the decision is recorded.
- Balance update
HR adjusts the correct balance, annual or sick, never mixing the two.
- Payroll check
Payroll confirms the leave codes before the monthly run is closed.
- Payslip and file
The payslip reflects the period and the record is kept with the employee file.
What happens on the accounting side
Accrued but untaken leave is a liability of the company. At year end, the people preparing the annual financial statements should be told what balances are outstanding so that the liability is considered. This is one more reason to keep balances reliable throughout the year rather than reconstructing them in a rush.
Employer checklist
- A written leave policy consistent with the Workers' Rights Act 2019 and the contract
- A leave register showing requests, approvals and balances per employee
- Separate recording of annual leave, sick leave and public holidays
- A medical certificate procedure that respects confidentiality
- A public holiday calendar built into rosters before the year starts
- Payroll codes that match the leave register
- A review of outstanding balances before year end
- A settlement method for final payments when employment ends
Common mistakes
Paying cash instead of granting leave. Replacing rest with money while the employment continues is generally not a lawful substitute.
Reducing pay for a late certificate. A late certificate is a documentation issue. Handle it through the policy, not by an automatic deduction.
Using one balance for everything. When annual and sick leave are blended, neither can be defended.
Ignoring variable pay. If part of an employee's earnings is variable, leave pay must reflect the legal definition of pay, not only the basic salary.
Forgetting the record trail. A dispute usually turns on documents. If the employer cannot show the request, the approval and the payslip, it is in a weak position.
When to ask an adviser
Leave rules look simple until a case departs from the standard one: part-time staff, employees on several contracts, a transfer between group companies, sector-specific regulations or an employee leaving mid-year. These are the situations in which general information is not enough. If you need a second opinion on how your company should apply these rules, you can contact us and your request will be passed to an FSC-licensed corporate service provider (Management Licence) for analysis.
If your business hires non-citizens, leave entitlements apply in the same way as for local staff, but their status adds other obligations; see hiring foreign staff.
Rs 1 000
Data Protection registration fee, up to 5 employees
Source: Data Protection (Fees) Regulations 2020
Rs 1 500
Data Protection registration fee, 6 to 25 employees
Source: Data Protection (Fees) Regulations 2020
Rs 2 500
Data Protection registration fee, more than 25 employees
Source: Data Protection (Fees) Regulations 2020
3 years
Validity of a controller or processor registration certificate
Source: Data Protection Act 2017, section 16(3)
FAQ
Do I have to grant annual leave to every employee?
The Workers' Rights Act 2019 sets out who is entitled and after what qualifying conditions. Entitlements can depend on the type of contract and the hours worked. Check the Act and any sector regulations, then reflect them in each contract.
Can I pay an employee instead of letting them take annual leave?
Not as a general rule while the employment continues. Leave exists so that the employee actually rests. Settling a balance in money is normally linked to the end of the employment. Ask an adviser before using any exception.
What proof can I ask for when an employee is on sick leave?
A medical certificate is the usual evidence. The policy should state when it must be provided and to whom. Keep it confidential, as it is health data.
Is sick leave deducted from annual leave?
It should not be, unless a legal provision or a more favourable agreement says otherwise. Record the two separately so that each balance remains accurate.
How are public holidays paid if the employee works that day?
The answer depends on how the employee is paid, the sector regulations and the contract. Worked holidays often carry increased pay or compensatory rest. Confirm the rule that applies to your sector before the payroll run.
What happens to unused leave when someone resigns or is dismissed?
Outstanding entitlement is generally dealt with in the final payment, subject to the law and the contract. Read the guidance on notice and severance and have the calculation reviewed if the amount is significant.
Does leave affect PAYE and contributions?
Leave pay is part of remuneration, so it forms part of the base on which deductions and contributions are calculated. The mechanics are in the guides on PAYE and payroll taxes.
Where should leave records be kept?
In the employee file and in the payroll records, for the retention period that applies. See company records for how to organise them.