Vacation Days

HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

Vacation Days

What are Vacation Days?

Vacation days are days for which an employee is paid when time is taken off from work. As a result, organizations provide paid time off (PTO) to employees as a benefit as part of a comprehensive compensation package. 

Typically, organizations that provide vacation days correlate them with the number of years of service the employee has provided within the company. For example, 

1 year: 5 days

2-5 years: 8 days

6-10 years: 12 days

11+ years: 16 days

Who receives vacation pay?

Most importantly, the Fair Labor Standards Act (FLSA) does not require employers to pay for time not worked. Therefore, employees who take vacation days aren’t legally entitled to pay for their time away from work. 

In short, vacation pay is an agreement between an employer and employee that determines the number of paid days away from work that one is entitled to.

Pay for unused vacation days:

Depending upon the agreement in place between the employer and employee, some require their employees to use their vacation days during a specific time period. For instance, this is known as “use it or lose it.” Subsequently, other agreements may allow the employee to roll over unused vacation days to future years.

Related Terms: Floating Holidays

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