The Potential Liability Of A Vacation Policy

August 20, 2015Articles Employee Benefit News

Often employers will neglect or overlook revising their vacation and/or paid time off policies, which are buried in the employee handbook that was last revised a half-dozen years ago. For many, this is a big mistake. 

Depending on your jurisdiction, a poorly drafted vacation/PTO policy can carry significant potential liability. If a company’s vacation/PTO policies are unclear or, worse, there are no such policies, its employees may be able to claim they are entitled to payment for their accrued but unused vacation upon termination.

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