The new administration has introduced reforms aimed at enhancing employees’ rights to annual leave.  Key proposals include: (i) reducing the eligibility period to six months of service; (ii) extending the carryover period for unused leave to three years; and (iii) prohibiting retaliation against employees who exercise their right to take leave.  

While these measures are intended to broaden statutory protections for employees, they may conflict with business operational needs.  Employees are often concerned about the timing and process for submitting leave requests to ensure they are not lawfully denied, whereas employers must manage workforce shortages, arrange for substitutes, and implement policies that minimize disputes.  

In this context, the Supreme Court has recently confirmed the legality of requiring employees to submit annual leave applications by a specified advance deadline.  

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