Unused leave is not paid, as a rule, as long as the individual employment contract is in effect. The Labor Code allows compensation in cash only upon termination of the contract. Upon departure, the employer must determine the remaining days and pay the corresponding indemnity, in compliance with the rules applicable to the specific situation.

A common question is whether unused days disappear after 18 months or whether they can still be paid upon termination of the contract. The answer depends on the reason for not taking the leave, the actual possibility of taking it, and the employer’s records. The 18-month period for granting the leave and the 3-year statute of limitations for a lawsuit have different functions.

When is unpaid vacation paid?

According to Article 146, paragraph (3) of the Labor Code, The compensation in cash for unused vacation leave is allowed only upon termination of the individual employment contract. As long as the employment relationship continues, the rule is to provide the vacation in kind: paid days off, not a sum in their place.

Therefore, compensation may become relevant in the event of resignation, dismissal, agreement between the parties, expiration of a fixed-term contract, or other termination of the contract. The existence of a balance of days due and unpaid is relevant, not the reason for the termination itself. The employer must calculate the balance based on the worked period, the contract, and the record of leave taken.

What does the term 18 months mean?

If the employee was unable to take full or partial leave in a calendar year for justified reasons, Article 146(2) obliges the employer to grant the remaining days, with the employee’s consent, within a period of 18 months starting in the year following the year in which the right was born. This rule aims at the granting of the leave, not the payment of the salary during the contract.

The expiration of the 18 months does not automatically mean that any right to compensation disappears. In Decision no. 40/2026, Published in Official Monitor No. 665 of August 11, 2026, the High Court clarified the link between the period of deferral and the statute of limitations. For older days, it must be analyzed whether the employer effectively offered the employee the opportunity to exercise their right, informed them, and took steps to ensure that the outstanding days could be taken. If such a real possibility existed, and the employee chose not to take the leave, the solution may be different from the situation where the employer prevented or failed to ensure the exercise of the right.

Therefore, it is not correct to assume that all days older than 18 months are automatically lost or, conversely, that all of them are paid automatically upon departure. The circumstances of each year and the documents regarding scheduling, informing and taking the leave are what matter.

The 3-year prescription period: when does it start?

The 3-year term provided for in Article 268, paragraph (1), letter c) of the Labor Code concerns applications for salary and other monetary rights arising from the employment relationship. In the case of compensation for unpaid leave, the Supreme Court determined by Decision No. 40/2026 that the term relates to the termination of the employment relationship, the moment from which compensation can be claimed in money.

This term of prescription should not be confused with the 18-month period in which the remaining leave must be granted. It also does not solve the question of whether the old days still exist: this is also checked to see whether the employee had a real and informed opportunity to take the leave.

How is the number of days remaining determined?

Check for each relevant year:

  • the number of days of leave provided for in the individual contract and in the applicable rules;
  • the period worked and any periods that are considered work under the law;
  • the days worked, the appointments and the requests approved or refused;
  • the employer's information regarding the remaining days and the possibility of taking them during the deferral period;
  • the vacation balance recorded in the personnel records at the date of termination.

The Labor Code establishes a minimum of 20 working days of annual leave, and the actual duration is determined by contract and applicable rules. For an incomplete year, a part-time contract or situations of suspension, a generic formula does not automatically apply without checking the period and the relevant documents.

Which documents to request upon termination of the contract?

Request in writing an estimate of the leave balance at the date of termination and the method of calculating the compensatory amount. Keep the contract and additional documents, leave requests and approvals, schedules, salary slips, and documents regarding the termination of the contract. If the employer’s records differ from your documents, request their correction and a written response.

In a labor dispute, documents about scheduling and taking leave are important. The Labor Code also regulates the burden of proof in labor disputes; it keeps copies of the records and requests the relevant documents in a timely manner.

Special rule for the staff of public institutions in 2026

Art. XVIII, paragraph (9) of Law no. 141/2025 It provides for a special rule for the staff of institutions and public authorities: upon termination of employment or service in 2026, no compensation in cash is granted for the unpaid leave for the year 2026. The text concerns the category of staff and the year of leave specified by law; it should not be automatically extended to private sector employees or to all postponed days from previous years. For positions or institutions with a special regime, check the applicable standard exactly according to your employment or service record.

In a nutshell

  • Unused leave is compensated in money only upon termination of the individual employment contract, as a general rule.
  • The 18-month period concerns the possibility of performing the postponed days; it is not the same thing as the prescription of the action.
  • For old days, the analysis depends on the real possibility offered to the employee to take the leave and on the available evidence.
  • The 3-year term for the monetary claim begins, according to the Decision of the Supreme Court of Cassation no. 40/2026, upon the termination of the employment relationship.
  • In the public sector, there is a special rule in 2026 for the days related to that year.

General information, reported to the legislation verified on November 1, 2026. The specific calculation depends on the contract, the leave record, and the status of the employment relationship.

Official sources