Human Resource Blog

Vacation

	HR Management
Confidential Employee Folder Confidential Employee Medical Folder Job File Worksheet Folder Daily EEO Applicant Flow Log Workplace Information Sheets Request to Inspect Personnel Files

An employee is requesting his vacation pay earned before quitting yet he has quit without notice. We have proof of his recent employment application with a competitor. In Texas, can we legally terminate him without paying his vacation?

Texas is one of several states that does not require employers to pay workers for earned but unused vacation upon termination. However, the employer needs to implement their vacation policy consistently. If you have established a past policy or practice of paying employees for earned vacation when they quit with no notice, you should do so now. Ideally, this policy would be in writing, perhaps in the employee handbook.

It\’s not 100% clear from your question whether we are discussing vacation time that the employee has already taken, or unused vacation. Suppose that John followed all procedures to take his vacation from July 1 to July 7. John\’s vacation was approved by his supervisor. When John returned from vacation on July 8, he quit without notice. John has not received the paycheck for July 1 to July 7 yet. Under those circumstances, the employer must pay the worker for the vacation time. The employer doesn\’t have to be happy about the employee quitting without notice, but the employer does need to keep his end of the bargain and pay the employee for the vacation time. If not, the employee can legitimately sue the employer in small claims court.

A word to the wise. Employees will apply for jobs with your competitors. It\’s not an act of treason…it\’s simply a reality in today\’s job market. Unless the employee has signed a contract that forbids such an action, it should be no surprise. Many employers try to improve employee retention through a variety of tactics, including offering better benefits and pay, or improving employee morale.