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Feb05

Vacation Pay

Benefits
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Hello,

I have one employee who has worked just under the 1000 hours needed for vacation and holiday pay. She did receive both last year so if I take vacation and holiday hours from 2011 into account she exceeds the 1000 hours worked. can you tell me if I include the vacation and holiday hours or strictly base it on hours worked.

Thanks!

This is a matter of company policy rather than employment law, but the usual procedure is to count only time worked when calculating whether an employee qualifies for benefits such as vacation and holiday pay. Most companies would not add the vacation and holiday hours to arrive at the 1000 hour total.

The best practice is actually to pay prorated benefits to full-time and part-time employees, based upon the hours worked, but that is not the policy at your company.

Be aware that if you add the hours of vacation and holiday pay to achieve the 1000 hours total, you must do so for every employee from now on. Otherwise, you will be guilty of illegal discrimination.

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This entry was posted on Sunday, February 5th, 2012 at 6:26 am and is filed under
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