It’s that time of year when vacations are in full swing, and maybe all the overlapping vacation requests and questions about how vacation works have exposed some gaps in your vacation policy? If so, it’s time to review your policy. Here are the key areas a comprehensive vacation policy should address:
- Who is entitled to vacation benefits.
- The rates of accrual for each category of employees.
- A maximum accrual or cap on vacation benefits.
- An explanation that accrued, unused vacation will be paid out at termination.
- Procedures for requesting vacation and obtaining prior approval.
- Company policy on vacation advances, if permitted.
- Company policy on pay in lieu of vacation (prior to termination).
- The accrual of vacation benefits during period of absence.
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