This month we have blogged on the importance of vacations, working on vacations, the statistics of private industry employers offering vacation benefits, and the concept of flexible vacation policies.  Hopefully, these recent blog posts have you thinking not only of taking a vacation, but of your own companies’ vacation policy. Do you have one? Do you need to implement one? Do you need to review your current one? Below are a few more things to consider about your own vacation policy…

Vacation is a benefit, not a right. There are no Federal Laws requiring employers to offer vacation time to employees, nor does the State of Georgia require it. Most employees, however, will expect it to be offered in their benefits package, and therefore you must have a written policy to adhere to regarding the way your companies’ vacation benefit will work. Most organizations use an accrual system, in which the employees accrue a certain amount of hours or days of vacation time per the amount of hours or days they have worked. The accrual system can be linked to years of service with the company and the level of their position. However, employees doing the same job with the same classification, must get the same amount of benefit.  A time and attendance system, such as our Time Tracker software, can help to track vacation hours accrued and vacation hours taken.  In addition, Human Resource Information Systems (HRIS), such as our Web Access, can also track time earned and taken. Included in your vacation policy, you should consider designating times when vacation can be taken if your company has a “busy” or “peak” season, you could restrict those times from allowing vacation.  You may also, designate the amount of notice that must be given before an employee can take vacation time, and how much vacation time an employee may accrue without losing it.  The State of Georgia does allow you to implement a “Use it or Lose it” policy on accrued vacation time.  In addition, you may restrict vacation time to certain classes of employees, for example only full-time, regular. The State of Georgia requires you to comply with your established policy or employment contract.  The State of Georgia allows an employer to lawfully establish a policy or enter into a contract denying employees payment for accrued vacation leave upon separation from employment.  In other words, you need to make sure that your policy clearly states whether or not separated employees will be paid their accrued vacation at the time of separation, for the state will default to your written documents. According to the Society for Human Resource Management, in a 2004 benefits study the average vacation benefit accruals for private industry in the United States were:

• One year of service  = 9 paid vacation days
• Two years of service = 10 paid vacation days
• Three-Four years of service = 12 paid vacation days
• Five years of service = 14 paid vacation days
• Six-Seven years of service = 15 paid vacation days
• Eight-Nine years of service = 16 paid vacation days
• Ten years of service = 17 paid vacation days
• Eleven-Thirteen years of service = 18 paid vacation days
• Fourteen-Fifteen years of service = 19 paid vacation days
• Fifteen Plus years = 21 paid vacation days

These accrual rates are very different than in France, one of the world’s 5 largest economies, where the average vacation is 8 weeks across all years of service. Be sure to contact our Client Service Representatives for additional help, when you are ready to write or revise your vacation policies!