March 09, 2008
The purpose of the Vacation policy is to clearly define who accrues vacation time, when vacations can be taken, how vacation time/pay is calculated with regard to layoffs/resignations, military leave, death, discharge, resignation, and holidays.
Example of: Standard Policy
The Period During Which Vacations May Be Taken Vacation may be taken between January 1 and December 31 of each calendar year.
1. Employees who have not completed 6 months of continuous employment by December 15 of any year will not be entitled to any vacation during the next 6 months. Only full-time employees earn vacation time.
2. Employees who have completed 6 months, but less than 1 year, of continuous employment by December 15 of any year will be entitled to a vacation of 1 week with regular pay of 40 hours. The vacation must be taken after the completion of the 6 months of continuous employment and not before.
3. Employees who have completed or will complete 1 or more years of continuous employment prior to December 15 of any year will be entitled to a vacation of 2 weeks with regular pay of 80 hours.
4. Employees who have completed 10 years of service prior to December 15 of any year will be entitled to a vacation of 3 weeks with regular pay of 120 hours. No more than 2 weeks may be taken consecutively without permission of the company. The third week cannot be taken until the employee has completed his tenth year, but the first 2 weeks may be taken at any mutually agreeable time during the vacation year.
5. Employees who have completed 20 years of service prior to December 15 of any year shall be entitled to a vacation of 4 weeks with regular pay of 160 hours. No more than 2 weeks may be taken consecutively without permission of the company. The fourth week cannot be taken until the employee has completed his twentieth year, but the first 3 weeks may be taken at any mutually agreeable time during the vacation year.
6. Vacation time does not accumulate from one year to another, and it is to be understood that vacations taken in any calendar year following the completion of the second year of continuous employment have been earned during the previous year.
Holidays Falling During Vacation
When a holiday falls on any day of the week during which an employee is on vacation, he shall receive 8 hours’ extra pay that week or shall receive an additional day off at a time mutually agreeable to the company and the employee.
Vacation Pay When an Employee Is Laid Off or Resigns with 2-Weeks’ Notice
1. If an employee leaves the company before the 6 months is completed, he or she will not be entitled to any vacation time, prorated or otherwise.
2. If an employee leaves the company after completion of the first 6 months, but before the end of the second year, he or she will receive the regular vacation of 40 hours for the first year worked if not already taken, plus a proration of 80 hours for time worked since the end of his or her first work year.
3. If an employee leaves the company after completion of the second year, but before the end of the calendar year in which he or she completed his second year, he or she will receive the regular vacation of 80 hours if it has not already been taken, plus proration of 80 hours for time worked since the end of his or her second work year.
4. If an employee leaves the company during any year following the calendar year in which he or she completed a second year of continuous employment, the employee will receive regular vacation allowance for the year in which he or she leaves plus a proration of the vacation entitlement for the time worked from the first of that year up until the time he leaves.
5. Pay in lieu of regular vacation time will be allowed in those instances where the employee who leaves has either not chosen to take or not had the opportunity to take his regular vacation before leaving. Prorated vacation will always be allowed as pay in lieu of time.
Vacation Pay When Employee Is Discharged or Resigns Without 2 Weeks’ Notice
1. An employee discharged for misconduct will not receive any vacation pay. Misconduct means criminal actions, violence, unlawful discrimination, intoxication on the job, dishonesty, and the like. Employees discharged for other reasons will be paid vacation pay the same as laid-off employees.
2. Employees who give less than 2 weeks of notice of resignation will not receive any vacation pay.
Vacation When an Operating Unit Is Sold
Employees in operating units that are sold will not receive any vacation pay on termination of employment unless required by applicable law.
Vacation Policy for Military Leave
1. When an employee leaves the company for military service, he or she will receive regular vacation for the current year plus a proration of vacation time for the time worked from January 1 of the current year up to the time he or she leaves for military service.
2. Except as may be required by applicable laws, when an employee returns to the company from military service, he or she will receive pro-rated vacation during the calendar year in which he or she returns and will be entitled to vacation time during the subsequent year prorated according to regular vacation entitlement from the date of hire and time worked from the date he or she returned through December 31 of the year in which he or she returned.
3. This policy permits an employee entering military service to benefit in full and with the least possible delay from all earned vacation.
Vacation Pay upon Retirement
1. A retiring employee will receive his regular vacation for the current year plus a proration of his vacation time for the time worked from January 1 of the current year to the date of retirement.
2. Pay in lieu of vacation time will be allowed in those instances where the retiring employee has chosen not to take or has not had the opportunity to take all earned vacation prior to the date of retirement.
Vacation Allowances upon Death
In the event of death, the next of kin will be paid an amount equivalent to pay in lieu of vacation time for all earned vacation, both regular and prorated, not taken by the employee’s date of death.
1. Each year during March, supervisors will consult with all regular employees entitled to vacations and develop a working schedule for vacation periods from such consultations.
2. The company will respect the wishes of the employee as to time of taking vacation as near as the needs of the company will permit, giving due consideration to the employee’s seniority where such is required by the labor agreement.
3. A leave of absence of 5 days or 10 days may be granted during the months of January or February to precede or follow the employee’s vacation period.
4. Vacations are not to be scheduled so that they carry over from the end of 1 calendar year into the beginning of the next.
5. A payroll authorization should be submitted in all instances where the employee is granted a vacation that is not indicated on a vacation schedule. Likewise, if dates of a scheduled vacation are changed, a payroll authorization should be submitted to cover the new dates.
6. If a scheduled vacation is postponed at the company’s request, that scheduled vacation time may be carried into the next year, and the company will reimburse the employee for any deposit (e.g., hotel reservation deposit) lost because of the postponement.
7. If an employee is recalled from a scheduled vacation, the unused scheduled vacation time may be carried to the next year. The company will reimburse the employee for any costs incurred because of the recall, and the employee will be paid the greater of $500 or an additional 5 days of vacation.
8. Key employees may not take vacation at the same time. When key employees request overlapping vacation schedules, the individual with the greater seniority will be provided first choice for the schedule. If the employees have the same seniority, the employee who will have the first choice of the vacation will be determined.
Other Uses of a Vacation
1. Vacations may be used for leaves of absence, including family and medical leave.
2. Vacation may be used for jury duty, witness duty, military duty, and other absences required by law.
Deductions from Vacations
Employees who are absent for less than a full day will have their vacation time reduced by the hours of work missed.
Employees preparing paychecks are prohibited from making any improper deductions from the salaries of exempt employees. Any employee who believes that an improper deduction has been made should immediately report the deduction on a form available from the Human Resources Department. Reports of an improper deduction from wages will be investigated. If it is determined that an improper deduction has occurred, the employee will be promptly reimbursed for any improper deduction.