Calculation of payment in lieu of annual leave is based on wages at ordinary rate of pay (ORP) i.e.
An employee (including a probationer) is not entitled to take annual leave during the first year of his service. However, if the employee resigns or being terminated/not confirmed prior to the end of the first year of service, the employee is entitled to utilise or be paid in lieu of annual leave which shall be in direct proportion to the number of completed months of service. [section 60E(1)]
The employee who resigns from service or whose service is terminated otherwise than for misconduct is entitled to paid annual leave in direct proportion to the completed months of service during the year in which termination takes place and the employer shall pay the annual leave wages in respect of the balance of annual leave.