HRadar | HR Alert | Information on not creating Social Benefit Fund and non-payment of holiday allowance

We would like to remind you that until 31 January 2024, employers with fewer than 50 full-time employees (as at 1 January) are obliged to inform employees that they have not established the Company Social Benefit Fund and are not paying holiday allowance.

The obligation to create a Social Benefit Fund applies to employers with at least 50 full-time employees. Employers with fewer employees have the option of:

  1. creating a Social Benefit Fund or paying holiday allowance, or
  2. opting out.

For this purpose, employer must make the appropriate decision and inform employees about it.

Failure to comply with the information obligation, in addition to the need to establish a Social Benefit Fund or pay holiday allowance, results in the risk of imposing a fine on the employer and pursuing claims for holiday allowance by employees.

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