Union Negotiations

Organizations recognize that employees need time off for rest and relaxation. Thus, they provide paid vacation as a benefit, incentive and reward. Although not required under U.S. federal law, paid vacation becomes a company obligation when stipulated in a written policy. A vacation policy provides guidelines on eligibility, entitlement, approval and payment. It also ensures consistency and fairness in application.

Purpose

Many companies offer paid vacation as part of the compensation package to attract and retain employees. They provide paid vacation as a benefit to promote employee health and well-being. When employees go on vacation, they usually return to work with more energy and stamina. Without adequate time to rest and recharge, employees experience stress, fatigue and other health-related issues. This eventually affects productivity, performance, quality of work and creativity.

Features

A policy on vacation identifies employees who are eligible and the number of days they are entitled to. Organizations sometimes provide different vacation credits depending on the position or employment status. Credits often increase based on length of service. The policy also provides guidelines on how vacation is accrued, how it is calculated and when it can be used. It includes provisions for special situations, such as transfers, leaves, sickness and disability. It also specifies payout upon separation from employment.

Process

Supervisors approve vacation time. They must try to accommodate the employee's preferred vacation schedule. However, they must also ensure that vacations do not adversely affect department operations. Employees must provide enough notice when requesting vacation so that supervisors can plan their department workload and look for temporary replacements when necessary. The vacation request form becomes part of the employee's attendance record.

Considerations

Unlike other industrialized nations, the United States has no legislated...