Singapore · Weekly briefing · Nº 042

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Annual leave encashment vs notice offset on EP / S Pass

Companion to Employment Act leave & notice — unused AL encashment on exit, when ‘offset notice with leave’ is a mutual agreement, and why MC days still count toward notice.

NextLiving2 min read

r/askSingapore’s “HR said my annual leave eats my notice” threads mix three MOM rails: unused leave encashment, taking AL during notice (with approval), and a separate mutual deal to bring the last day forward. Floor entitlements live on Employment Act leave & notice. This companion is the exit math layer.

Three exit patterns (do not collapse them)

PatternWhat it usually meansWho must agree
Encash unused ALPay out accrued, unused statutory/contract leave on termination (misconduct carve-outs aside)Employer pays; you do not “spend” those days on the calendar
Take AL during noticeYou are still serving notice while on approved leave; last day stays putEmployer approval for when you take AL
Offset notice with ALBring the last day forward so leave days replace calendar notice daysMutual agreement — not a unilateral HR power move

MOM’s termination-with-notice page is the primary text. Screenshot balances before you resign; WhatsApp “we’ll sort leave later” is how encashment fights start.

MC during notice — still part of the clock

If you are covered by the Employment Act, paid or unpaid sick leave during notice counts toward the notice period. The employer cannot extend notice or claim short-notice damages for those MC days. Contracts that say otherwise are fighting published MOM guidance — keep the MC and the MOM link in the same email thread.

Unpaid leave during notice is different: the employer may extend notice only with your agreement.

Pass / IPA adjacency

Leave math does not pause immigration clocks:

  1. New IPA in hand before you burn the old job — career pivots and the IPA-before-resign calendar
  2. Retrenchment exits still expect unused AL / notice pay on the last day — retrenchment benefits
  3. Underpayment of encashed leave is a TADM salary fight — salary disputes
  4. Align IR21 / final pay with the real last day — tax clearance

Decision rule

Encash ≠ offset ≠ AL-during-notice. Ask HR in writing which of the three they mean, keep balances + the MOM page in the thread, and do not trade a clean last day for a verbal “we’ll pay leave later.”