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Vacation and Disability

If an employee is out for 8 weeks on diability, are they still entitled to vacation pay that year?

Vacation benefits are a matter of agreement between employer and employee. Thus, an employee’s eligibility for vacation while on disability depends on the employer’s policy. An employee may not be eligible for vacation if the employer has an accrual based policy in which an employee accrues vacation hours based on time worked. However, an employee on disability may be eligible for vacation if the employer has a policy in which employees receive a lump sum for a specified time frame.

Keep in mind, some disability insurance carriers require the employee to disclose any additional income received while collecting disability benefits such as vacation pay.

This entry was posted on Tuesday, April 21st, 2015 at 1:53 pm and is filed under
Benefits, Compensation.
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