I have a policy that talks about termination and paid vacation days. How does that affect an employee that quit without notice?
I cannot find a definition of termination and it is not defined in policy.
Neither the federal Fair Labor Standards Act (FLSA) nor Indiana state law requires employers to provide vacation, although if they do choose to provide this benefit, it must be administered in a nondiscriminatory manner.
Indiana considers accrued vacation pay to be a form of compensation, which may entitle the employee to receive the payout upon termination. However, an employer may require that certain conditions be met, such as requiring a notice, before the accrued vacation is paid out. If there is such a policy in place, it is legal for the employer to adhere to its own policy.
This is a good reminder of the importance of establishing written policies before a situation arises, so that both staff and management know what to expect and to avoid any perception of unfairness or discrimination. If you decide to update your vacation policy, be sure everyone is made aware of the change.
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