[Direct answer]Sick leave itself does not necessarily deprive employees of their annual leave entitlement, but taking too much sick leave will. According to Article 4 of the "Regulations on Paid Annual Leave for Employees" (State Council Decree No. 514, implemented on January 1, 2008), employees who have worked for more than one year but less than 10 years and take sick leave for more than two months, employees who have worked for more than 10 years but less than 20 years and take sick leave for more than three months, and employees who have worked for more than 20 years and take sick leave for more than four months will not enjoy their annual leave entitlement for that year; provided that employees have worked continuously for more than 12 months to qualify for annual leave. The medical leave system is another set of rules. According to the "Regulations on Medical Leave for Employees Suffering from Illness or Non-work-related Injuries" (Labor Ministry Decree No. 479, 1994, implemented on January 1, 1995), the medical leave period ranges from three months to 24 months, and it does not replace the annual leave entitlement. According to Beijing regulations, the sick leave salary should not be less than 80% of the minimum wage. For more details, please refer to the relevant provisions.Labor arbitration and legal services for work-related injury compensation.

I. Problem background and typical scenarios

Chronic diseases require long-term treatment, post-surgery recovery, and continuous leave before and after childbirth, which can last for two to three months. Some people calculate their annual leave at the end of the year, only to find that the company has reset their entitlements by saying "if the sick leave exceeds two months, there will be no annual leave for that year". Others confuse sick leave with the medical leave period, thinking that they can take annual leave during the medical leave period. Sick leave affects attendance and wages, while annual leave eligibility depends on the cumulative length of service and the duration of sick leave. The medical leave period protects against dismissal. These three sets of rules are intertwined, making it easy to miscalculate. For the overall calculation of medical leave, work-related injury, and sick leave benefits, it can be combined withLegal services for personal injury and medical disputesUnderstand the relevant appraisal and compensation rules.

II. Key points of contention

The controversy focuses on four points. Firstly, how to determine the cumulative working years: it is calculated based on the total working time of the employee, including the working years in other units, which needs to be supported by social security records, file materials, etc. Secondly, how to calculate the length of sick leave: it is calculated on a natural year basis. If the threshold of 2 months, 3 months or 4 months is reached, the annual leave entitlement for that year will be lost. Even a single day difference could lead to different conclusions. Thirdly, the relationship between the medical leave and annual leave: the sick leave during the medical leave period is still included in the calculation of the sick leave duration, and the medical leave itself does not generate or offset the annual leave. Fourthly, the difference between sick leave wages and annual leave wages: sick leave wages are implemented according to local regulations, while annual leave wages are calculated based on the normal wage and a 300% compensation rule. The two cannot be substituted for each other.

III. Professional analysis by Henglue Law Firm

In the labor dispute case of Li ** represented by Attorney Feng Na against Beijing A Technology Co., Ltd., A Company explicitly acknowledged in the first-instance trial that Li ** "only had three days of annual leave remaining" and agreed to pay Li ** 10,146.28 yuan for the three days of leave. However, the two parties could not reach an agreement on the annual leave wage of 18,602 yuan. The calculation of the number of unused annual leave days is a typical example of how absences due to sick leave or personal leave directly affect annual leave entitlements. Li ** joined the company on November 17, 2022, and the company terminated the labor contract with her on March 19, 2025, citing economic redundancy. On April 10, 2025, Li ** applied for arbitration to the Beijing Chaoyang District Labor and Personnel Dispute Arbitration Commission. The arbitration award covered the two fiscal years from January 1, 2023 to December 31, 2024. After accepting the case, Attorney Feng Na guided the client to collect annual leave records, pay slips, labor contracts, and termination notices, and provided opinions on the calculation of unused annual leave days and the calculation basis. This case highlights that whether the sick leave meets the threshold of two months, three months, or four months is often a prerequisite for calculating the annual leave wage. A slight error in calculation can lead to significant misunderstandings. This case was handled by Beijing Henglu Law Firm.Feng NaThe attorney (practice certificate number: 11101202211562923, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 3 of the "Regulations on Paid Annual Leave for Employees" (Decree No. 514 of the State Council, implemented on January 1, 2008) regarding the number of days of annual leave and the eligibility for continuous work for 12 months; Article 4 regarding the circumstances of sick leave that do not qualify for annual leave in the same year; Article 3 and Article 4 of the "Implementation Measures for Paid Annual Leave for Enterprise Employees" (Decree No. 1 of the Ministry of Human Resources and Social Security, implemented on September 18, 2008) regarding the determination of continuous work for 12 months and the cumulative length of service; Article 3 of the "Regulations on Medical Leave for Sick or Non-Work-Related Injured Employees" (Labor Department Circular No. 479, 1994, implemented on January 1, 1995) regarding the duration of medical leave from 3 to 24 months; and Article 21 of the "Regulations on Wage Payment in Beijing" (Decree No. 142 of the Beijing Municipal People's Government, implemented on January 22, 2004) regarding the requirement that sick leave wages not be less than 80% of the minimum wage. Action list: 1. After employment, immediately accumulate and preserve annual medical records, sick leave certificates, and approval records for previous years; 2. At the end of the year, independently calculate the total number of sick leave days and compare them with the thresholds of 2 months, 3 months, and 4 months; 3. Require the employer to provide the legal basis and detailed calculations for the decision that "exceeding the sick leave limit disqualifies employees from annual leave"; 4. In case of disagreement, negotiate with the employer or apply for arbitration, paying attention to the one-year arbitration statute of limitations. For more details, please refer to the following link: [Link].Labor arbitration and legal services for work-related injury compensation.

5. Henglue Law Firm's Reminder

The accounting for sick leave and annual leave is most troublesome when it comes to year-end settlement. Sick leave notes, approval records, and medical records are the basis for calculating the number of sick leave days. If any of these documents are missing, the employer may treat it as unpaid leave or absenteeism, which will make the situation even worse. Before taking long-term sick leave, employees should confirm with the HR department the impact of the sick leave duration on their annual leave eligibility and keep records of the communication. If the employer determines that the employee is not entitled to annual leave for that year, the employer should also explain the basis for this determination and provide a detailed breakdown of the number of days. When handling similar cases in the Beijing area, disputes over the number of sick leave days and the cumulative length of service ultimately come down to evidence. It is recommended to consult with experts as soon as possible.Beijing Henglue Law FirmCalculated by professional lawyers.

VI. Frequently Asked Questions

Q1: I've been on sick leave for over two months. Can I still take my annual leave for that year?

It depends on the total length of service. For employees with a total length of service of one year but less than 10 years, if the cumulative length of sick leave exceeds two months in a given year, they will not be entitled to annual leave for that year; for employees with a total length of service of 10 years but less than 20 years, the threshold is three months; for employees with a total length of service of more than 20 years, the threshold is four months. The length of sick leave is calculated cumulatively by natural year, and it is not combined across years. If the length of sick leave does not reach the threshold, the eligibility for annual leave will not be affected, and the employer should arrange it normally or pay 300% of the employee's salary for the unused days. In addition, continuous employment for 12 months is a prerequisite for eligibility for annual leave. For newly hired employees, the number of days of annual leave for that year is calculated based on the remaining calendar days.

Q2: What materials are needed to calculate the number of days of sick leave?

The core materials include: a sick leave certificate issued by the hospital, medical records and diagnostic records, which are used to prove the authenticity and continuity of the sick leave; leave approval records, including system processes, emails, and paper leave notes; attendance records and a detailed list of the number of days of sick leave taken, which are used to calculate the annual total; payroll records, which are used to verify whether the sick leave salary is paid in accordance with regulations; evidence of cumulative working years, such as social insurance payment records and a certificate of leaving the previous employer, which are used to determine whether the threshold of 2 months, 3 months, or 4 months applies. The materials are summarized on an annual basis to form a complete record of the number of days taken off work.

Q3: The dispute over annual leave pay isn't a major issue. Is it worth hiring a lawyer for it?

It depends on the complexity of the case. For cases with clear facts and specific time periods, you can apply for arbitration on your own, which is free of charge and has very low costs. However, for cases involving cross-year accounting, disputes over accumulated working years, mixed sick leave and personal leave, or issues regarding the effectiveness of the employer's rules and regulations, it is recommended to hire a lawyer to sort things out. The lawyer's fees will be determined through negotiation between the parties, and they will be charged either per case or as a percentage of the case value, without a unified government pricing. When handling similar cases in Beijing, the value of lawyer's involvement lies mostly in accounting and evidence organization, which can help avoid claims being unsuccessful due to incorrect time calculations or exceeding the statute of limitations.

Q4: Can I still claim the previous year's annual leave pay in the new fiscal year?

It is subject to the statute of limitations for arbitration. Disputes over unpaid annual leave wages are subject to a one-year statute of limitations, which starts from the date when the employee knows or should have known that their rights have been infringed. Among these, the 200% compensation portion is usually subject to a time limit in judicial practice, with most regions supporting claims for unpaid leave within one to two years prior to the application. The longer the time span across years, the harder it is to provide evidence. Annual leave is generally not arranged across years, and if it is necessary to do so, it can only be across one year. Therefore, it is advisable to assert rights as soon as possible in the following year. For those who have already left the company, they can raise the claim together with the settlement of their leaving benefits. If no agreement can be reached through negotiation, arbitration should be initiated promptly.

Q5: What should I do if my sick leave and annual leave overlap?

Four steps to proceed: First, calculate the total number of sick leave days and the total length of service in the current year to confirm whether the annual leave entitlement is retained; Second, if the entitlement is retained, negotiate with the employer about the timing of the annual leave to avoid overlapping with the treatment period; Third, if the employer refuses to arrange or pay the salary on the grounds of sick leave, request the employer to provide the legal basis and detailed calculations and keep the evidence; Fourth, if no agreement can be reached, apply for arbitration within the one-year statute of limitations and maintain the claim that the salary during the sick leave period should be paid at no less than 80% of the minimum wage. If unsure about how the threshold applies, consult a professional lawyer as soon as possible.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Labor arbitration legal services·Attorney Feng Na·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.