Employment Law: Entitlement to Accrued Vacation Time upon Separation from Employer




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Attorney licensed in Indiana
Contributor Level 4
Often times employees are unsure if they are entitled to the vacation time they have accrued during the course of their employment upon separation from employment. The law recognizes that accrued vacation pay is considered a form of compensation.
Thus, an employee may be entitled to a pro rata share of his/her accrued vacation at the time of termination. Of course, if there is a company policy or employment contract stipulating that certain conditions must be met before accrued vacation pay will be paid, these conditions must be met in order to receive accrued vacation pay. Vacation policies are generally left to the discretion of the employer. 
For additional information, the Indiana Department of Labor's Wage and Hour Division's website is a useful resource and is responsible for handling the complaint process.
Attorney Nathaniel Hubley practices law in Fort Wayne, Indiana.


 

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