Paid Vacation: Just the Facts Please

Paid vacation days are simply time spent away from the company while not conducting any work-related responsibilities that an organization voluntarily provides employees as a benefit. Generally, the number of paid vacation days is accrued (earned) by employees based on years of service to the company and to their position’s rank in the organization’s structure. Truth be told, there are no Federal laws in the United States that require an employer to offer paid vacation days as a benefit.  However, to successfully compete in the marketplace for the most competent workers, employers of choice offer employees paid vacation days.

Most organizations use a formula that assigns a certain number of hours accrued during each pay period based on time with the company.  Paid vacation days in the United States range from five to 30.

According to the Society for Human Resource Management, in a benefits study highlighted by Salary.com, employees with these years of service on average received the following paid vacation days:

Years of Service

Paid Vacation Days

1

9

2

10

3 – 4

12

5

14

6 – 7

15

8 – 9

16

10

17

11 – 13

18

14 – 15

19

> 15

21

NOTE: In order to substantiate an employee’s real competency and also to assure their long-term commitment to the organization, it is common to maintain an initial 6-month probation period where vacation leave is prohibited.  After six months of competent service, then only half of one year’s vacation and / or the amount which has actually been accrued can be taken by the employee.

 

www.hrinsights.com

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