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Offsetting of Annual Leave
An employee can use his annual leave to offset the notice period for termination of contract. If an employee uses his annual leave to offset his notice period and to bring forward his last day of work, he would only be paid till his last day of work and the annual leave used to offset his leave will not be paid. By bringing forward his last day of employment with the company, he is no longer considered an employee of the company and hence he may start work immediately with his new company.
If an employee chooses to offset his leave during the notice period, it is different from situation where he applies to go on approved leave during the notice period.
If an employee applies for annual leave to cover all or part of his notice period and approval has been granted by the employer, he will be paid his salary for the full notice period. In this case, he is considered as an employee of the company until the last day of his notice period. If he wants to join a new company, he can do so only after the last day of his notice period.
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Starting Work with New Employer while serving Notice of Termination with Current Employer
The employee serving the notice of termination is still considered an employee of his current employer. Unless his current contract of employment allows him to work with another employer before the date of termination, he has to seek written permission from his current employer to do so
