Sample Employee Handbook: Vacation Pay Alternatives
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Matthies
Law Firm, P.C.
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Serving
as Employment Law Advisors for over 25 years
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Sample Employee Handbook - Vacation Pay
Alternatives
Vacation
Accruals
| Option 1: |
For each full month completed
after initial eligibility,
vacation accrues at 0.833 days/month.
After completion of 10 years
of service, vacation
accrues at 1.250 days/month.
No vacation credits are
accumulated during the initial
Introductory period. Employees who fail to complete this Introductory
period are not eligible to receive any vacation pay. Employees who
satisfactorily complete their Introductory period will be awarded
retroactive vacation accrual for the 3 months spent as an introductory
employee (i.e., 0.833 days multiplied by 3), which shall be treated as
a bonus for successful completion of the Introductory period.
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| Option 2: |
Vacation is awarded for full
years of service only.
After completion of one full year of service, an employee is awarded
two weeks (80 hours) of vacation pay. Vacation pay awarded may be used
only during the year in which awarded, unless otherwise authorized by
the Company.
On the service year
anniversary date of each subsequent
year (as adjusted), the employee will receive an award of the following
amount of vacation pay:
Anniversary
of 2nd year through 5th year: 2 weeks (80 hours)
Anniversary
of 6th year through 15th year: 3 weeks (120 hours)
Anniversary
of 16th year and thereafter: 4 weeks (160 hours)
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| Option 3: |
Vacation time is awarded as
of
January 1st of each year.
The amount of vacation time which will be awarded to regular fulltime
employees on the calendar year starting January 1st is calculated as
follows:
Employees
with more than one year, but less than 5 full years of completed
service, as of January 1st will receive 2 weeks (80 hours) of vacation
pay which may be used during the calendar year. Employees with 6 years
of completed service through 15 years of completed service as of
January 1st will receive 3 weeks (120 hours) of vacation pay. Employees
with 16 or more years of completed service as of January 1st will
receive 4 weeks (160 hours) of vacation pay. Employees with less than
one full year of service will receive a pro-rata award of vacation pay,
based upon the number of completed full months of service (for example,
an employee with 6.5 months of service will receive 1/2 of the vacation
pay granted to employees with a full year of service, which amounts to
1 week of vacation (40 hours).
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Payment on
Termination
| Option 1: |
Upon termination of
employment, employees will be paid
for unused vacation time in their account (including any vacation which
was authorized to be carried over from the prior benefit year).
Vacation is treated as having accrued only after completion of each
full month of service. Thus, no vacation credit will be given for any
fractional month of service.
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| Option 2: |
Upon termination of
employment, employees will be paid
for unused vacation time in their accounts. Because vacation pay is not
awarded until after the completion of each successive full year of
service, no vacation pay is considered to have been earned nor is any
vacation payable for any partial years of service which may have been
completed since the last vacation awards were made.
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| Option 3: |
Upon termination of
employment, employees will be paid
for unused vacation time in their accounts. Because vacation pay is
awarded on a yearly basis as a reward for completion of a full year of
service, employees will not receive additional vacation pay for partial
years of service completed since January 1st of the current year.
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Vacation
Scheduling
| Option 1: |
In January of each year, the
supervisor will hold a
meeting to record vacation requests from all employees under his/her
supervision, and will create a master vacation calendar in a meeting
with all employees. At the start of such meeting, or in an announcement
prior to the meeting, the supervisor will list the number of employees
who can be permitted to take vacation during the same time period and
will also announce black-out periods during which no vacations can be
scheduled.
Vacation selection shall
proceed in order of seniority
(using full years of seniority). If two or more employees have the same
length of full years of service (i.e., one has 3 years and 2 months,
and another has 3 years and 2.5 months), then they will draw lots to
determine the order of selection of vacations.
Once vacations have been
scheduled, the Company will
make every effort to honor the requests for these specific vacation
times. However, employees are encouraged to check with their
supervisors about departmental workloads before purchasing
non-refundable tickets or making deposits, and should try to purchase
tickets as close to the time of departure as is possible, because
circumstances occasionally do arise when a scheduled vacation must be
canceled for some reason (such as unforeseen workload requirements or
unexpected hospitalization of a coworker). While we will try to honor
specific vacation requests where we can, we reserve the right to
require that vacations be reset if unexpected problems arise. If a
scheduled vacation is cancelled by the Company less than thirty (30)
days before it was to be taken, the employee will have the option of
resetting the vacation to the next available date; carrying over the
vacation to the next year (up to a maximum of four weeks for the year);
or being paid in lieu of taking the vacation.
Accrued vacation days only
will remain in the employee's
account for twelve consecutive calendar months, after which any unused
vacation time will be treated as forfeited, unless the employee has
been asked to defer the vacation in the interests of the Company or
unless the employee has applied for and received advance permission to
carry vacation time forward in order to apply the same to a foreseeable
impending absence (such as maternity leave, extensive surgery, or
similar reasons).
Once the vacation schedule is
set, the employee normally
will be expected to take a vacation at the time selected, unless the
employee obtains permission from the supervisor at least two weeks
before the original vacation date to reset the vacation to a different
time period. Failure to take scheduled vacation at the time selected
may result in forfeiture of the vacation time, unless the Company has
requested the change in scheduling or the employee presents acceptable
extenuating reasons to allow the vacation to be reset. While this
provision may seem harsh, the Company has determined that it has too
many workaholics and procrastinators who inevitably will wait until the
last minute to try to set vacations or who pick dates desired by others
and then cancel (causing coworkers to want to strangle them), and also
has too many worriers who keep banking their vacation days for fear
that they might possibly need them for some unknown potential
catastrophe. Usually, these are the individuals who are in most need of
time away from the office, so this approach has been adopted in the
hopes of pushing these employees into actually taking their vacation
time.
Special arrangements may be
made in the case of
employees who wish to bank vacation time in order to use it for a
foreseeable future absence (such as childbirth or anticipated surgery),
or who want to reschedule vacation days when such a situation arises.
It is very important to notify your supervisor as soon as possible of
the anticipated dates of the absence in order to allow any necessary
scheduling changes to be made (as other coworkers may want the vacation
time slot which you are giving up, or may have spoken for the time when
you will be out - and these coworkers are likely to be most upset if
you wait until the last minute to mention that you want to change the
schedule). Belated requests for changes in vacation scheduling may
result in denial of the request to apply vacation time to the absence
and/or insistence that the absence be postponed to a date when it can
be better accommodated (if this is a viable option).
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| Option 2: |
Once accrued, vacation may be
scheduled at any time
during the year, subject to approval of the supervisor. Employees are
cautioned that requests for use of vacation in the last two months of
the year, as well as in July, are very popular. Only a limited number
of these requests can be approved, so it is advisable to request such
time early. Where more employees have requested time off during these
time periods than can be accommodated by their department, the
supervisor usually will hold a meeting of the employees to decide upon
an equitable way to allocate popular vacation times.
Once vacations have been
scheduled, the Company will
make every effort to honor the requests for these specific vacation
times. However, employees are encouraged to check with their
supervisors about departmental workloads before purchasing
non-refundable tickets or making deposits, and should try to purchase
tickets as close to the time of departure as is possible, because
circumstances occasionally do arise when a scheduled vacation must be
canceled for some reason (such as unforeseen workload requirements or
unexpected hospitalization of a coworker). While we will try to honor
specific vacation requests, we reserve the right to require that
vacations be reset if unexpected problems arise. If a scheduled
vacation is cancelled by the Company less than thirty (30) days before
it was to be taken, the employee will have the option of resetting the
vacation to the next available date; carrying over the vacation to the
next year (up to a maximum of four weeks for the year); or being paid
in lieu of taking the vacation.
Accrued vacation days only
will remain in the employee's
account for twelve consecutive calendar months, after which any unused
vacation time will be treated as forfeited, unless the employee has
been asked to defer the vacation in the interests of the Company or
unless the employee has applied for and received advance permission to
carry vacation time forward in order to apply the same to a foreseeable
impending absence (such as maternity leave, extensive surgery, or
similar reasons).
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©
COPYRIGHT 2004 ALL RIGHTS RESERVED
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Legal Notice
This sample employee handbook is intended for general
informational purposes only, and should not be applied to any
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and the regulations which interpret them may be even longer. As with
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depending
on a number of factors.
Likewise, provisions in the sample Employee
Handbook may be entirely lawful in one state or locale, and yet illegal
in
another. Thus, the sample Handbook and all legal summaries should be
used
ONLY for general management education about employment laws and
policieis,
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the full text of federal and applicable state statutes, the full text
of
all regulations, and the applicable federal and state case law before
attempting
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