How much vacation time should employees receive?

The number of vacation days an employee may take is usually based on length of service. Additional vacation credit or a different method of accrual can be used for factors other than seniority, such as job level. An organization can modify vacation accruals to reflect additional credit for any factor it wants, as long as it is not discriminatory. For samples of various methods of vacation accrual, see Sample vacation accrual methods at ¶45,081 .

What's the average amount of vacation? According to a 2003 SHRM survey of 341 HR professionals, the average number of paid vacation days offered is as follows:

• Less than one year: 6.28;

• One to less than two years: 10.53;

• Two to less than three years; 11.01;

• Three to less than five years: 12.02;

• Five to less than 10 years: 15.18; and

• Ten or more years: 18.65.

Should there be a waiting period before vacation time is granted? Many vacation plans provide for a waiting period (such as 6 months) before an employee is eligible to take vacation. Vacation time is sometimes phased in on a pro-rata basis during an employee's first year of employment.

How should vacation time be accumulated? It is reasonable for an employer to establish a maximum amount of vacation that an employee can accumulate. Some options employers may consider include:

• letting employees carry over vacation time to the following year;

• allowing employees to convert unused vacation into additional sick leave or other leave;

• giving employees the option of receiving cash in lieu of unused vacation; or

• requiring employees to forfeit unused vacation.

What happens when a holiday occurs during a vacation? Vacation policies should address what happens when a designated holiday occurs during a scheduled vacation.

With respect to holidays that fall during a vacation period, common practices are to allow the employee to schedule another day of vacation so that the holiday does not count as vacation time or to allow the employee to be paid for the holiday in addition to vacation pay.

Is a plant shutdown also a vacation time? Your organization may have a time of the year when it shuts down its operations and all employees are expected to take their vacations. A vacation policy should fully explain your organization's shutdown vacation policy and clarify what happens if an employee is entitled to more vacation than the length of the shutdown.

What if the office or worksite is closed while an employee is on vacation? In the event of a disaster or emergency (such as weather-related closings), worksites may be closed and staff sent home with pay. Normally, employees on vacation or other paid leave do not receive additional vacation time if this occurs.

What if an illness occurs during a vacation? If an employee is injured or becomes ill during a period of scheduled vacation, most vacation policies do not require that the time be counted as vacation time if the employee is hospitalized or eligible for short term disability leave. At the same time, most vacation policies do not allow employees who are ill but not hospitalized to substitute paid sick leave for scheduled vacation. However, employers frequently do allow employees to use vacation time during periods of unpaid disability.