Do I get compensated for unused annual leave when I resign?
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Do I get compensated for unused annual leave when I resign?

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07.07.2026

I’m resigning from my job in Malta and I still have about eight days of annual leave that I never got around to using this year. My employer says leave that isn’t used before the last working day is simply lost. Is that actually correct, or should I be paid out for it?

Site Administration 12.07.2026
reply date: 12.07.2026

Under the Employment and Industrial Relations Act, Chapter 452 of the Laws of Malta, employees are generally entitled to be paid for any accrued but untaken annual leave when their employment ends, whether through resignation or dismissal, and an employer's policy of simply forfeiting unused leave upon departure is not usually a lawful basis for withholding payment for leave that has genuinely already accrued to you under your contract or the applicable minimum entitlement. The calculation should reflect your normal daily or hourly rate of pay applied to the outstanding leave days you have accrued but not used, taking into account any leave already taken during the current leave year. Ask your employer in writing for a clear calculation of your accrued leave balance and confirmation of how it will be paid out with your final salary. If they continue to refuse payment for genuinely accrued leave, you can file a complaint with the Department of Industrial and Employment Relations, and pursue the matter before the Industrial Tribunal if it remains unresolved, since unused accrued leave forming part of your final pay is a well-established right under Maltese employment law.

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