December 2013 Newsletter
What Happens to Unused Vacation Time when an Employee Leaves?
What happens to an employee’s unused vacation time when they leave the company? Well, it depends on what your vacation policy says. Many employers mistakenly believe that they must pay employees for this time. However, so long as the vacation policy is worded correctly, and the company follows the policy, the company will be free from any obligation to pay those wages.
1. Make Sure the Policy is Worded Correctly
Surprising as it may be, there is no law that requires employers to give employees time off for vacation or personal leave. However, once the vacation pay is earned - it is due. The trick here all comes down to wording.
In Kansas, and many other states, employers cannot retroactively take away vacation time. The law is concerned with things called “condition subsequent” and “condition precedent.” The difference between condition precedent and condition subsequent can sound confusing when one gets into the details of each. However, the courts have made one thing very clear. If you spell out who is entitled to receive this pay in your policy then that policy is what governs.
It is up to the employer how strict or lenient they want to be with the policy.
2. Make Sure Your Company Follows the Policy
Be careful though, if your policy states that employees will only receive vacation time subject to requirements, and in practice you do not truly require those conditions, then any employee will have an argument that they are entitled to the pay.
Human Resource Solutions will be glad to answer any questions you may have regarding this, or any other, employment issue you are having. Contact Us!
What happens to an employee’s unused vacation time when they leave the company? Well, it depends on what your vacation policy says. Many employers mistakenly believe that they must pay employees for this time. However, so long as the vacation policy is worded correctly, and the company follows the policy, the company will be free from any obligation to pay those wages.
1. Make Sure the Policy is Worded Correctly
Surprising as it may be, there is no law that requires employers to give employees time off for vacation or personal leave. However, once the vacation pay is earned - it is due. The trick here all comes down to wording.
In Kansas, and many other states, employers cannot retroactively take away vacation time. The law is concerned with things called “condition subsequent” and “condition precedent.” The difference between condition precedent and condition subsequent can sound confusing when one gets into the details of each. However, the courts have made one thing very clear. If you spell out who is entitled to receive this pay in your policy then that policy is what governs.
It is up to the employer how strict or lenient they want to be with the policy.
2. Make Sure Your Company Follows the Policy
Be careful though, if your policy states that employees will only receive vacation time subject to requirements, and in practice you do not truly require those conditions, then any employee will have an argument that they are entitled to the pay.
Human Resource Solutions will be glad to answer any questions you may have regarding this, or any other, employment issue you are having. Contact Us!
|
© 2019 Human Resource Solutions. All Rights Reserved.
|