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Jul22

Holidays that fall in the middle of a vacation

We are a small dental office with 7 full time employees. We have 6 holidays that are eligible through out the year. We do not pay for holidays that do not fall on “our business” days. we are open Monday thru Thursday. If an employee is on vacation during a holiday, and has schedualed that time off, should the employee be paid for that holiday?

This is a matter of company policy rather than employment law. As an employer, you can set any policy on this topic as long as you enforce it consistently.

Many, many employers have a rule that employees must work their SCHEDULED day before and after the holiday, to be paid for the holiday. So if Tuesday is a holiday, the employee cannot call in sick on Monday or Wednesday and still be paid for the holiday.

Twenty years ago, it was very common for employers to not pay an employee who was on vacation the day before or after the holiday. However, many companies have reconsidered this policy. Allowing employees to take a scheduled, approved vacation around a holiday does not increase your benefits costs, but does increase employee morale and work/life balance. Many employees want to take their vacation in conjunction with a holiday, to maximize their time off or to coincide with time their spouse is off or children are out of school.

If you followed this policy, when Tuesday is a paid holiday, employee Julio might schedule his vacation for Monday, Wednesday and Thursday of teh same week (since your office is closed on Friday, Saturday and Sunday anyway.) As long as he worked the Friday before and the Monday after, most employers would pay Julio one day of holiday pay and 3 days of vacation for the week.

Remember that one purpose of paid vacations is because employees who regularly take time off are more productive — so it does not make sense to impose restrictions unless you must.

However, if you are in an industry that is particularly busy on the days before and after a holiday, you may want to not allow vacations during that period.

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This entry was posted on Friday, July 22nd, 2011 at 5:22 am and is filed under
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