Shanu Singh Guliani

Having a Written Vacation/Holiday Policy

Businesses are not legally required to provide paid vacation, holidays, or sick leave to their employees. Chances are that a company would find no employees who wanted to work for them if they did not allow any vacation time whatsoever. However, a company (especially if it’s a seasonal one) may need all its employees during the holiday shopping season. For example, during the month of December (e.g. for jewelry stores) employers are within their rights to ask their employees to refrain from taking vacation time during certain periods—or to demand that employees take vacation at certain times.

As a small business owner I understand that a policy which offers vacation time tends to attract high-quality employees—so if you decide to adopt a policy that gives your employees paid vacation, holidays, and/or sick time, here are some ideas to keep in mind:

1.      Have a written vacation/holiday policy (ideally, one that is part of a broader handbook of policies).   

2.      Make sure the businesses written policy takes into consideration your holiday coverage schedule. Specify blackout periods that employees may NOT take a vacation, if your business has a particular need. Look closely at the days prior to Christmas through the first business day following the New Year, and decide which days you’ll need coverage. Will your offices be closed entirely, or will they observe shortened hours? Can your staff work remotely? Do certain positions need to be filled while others do not?

3.      Require employees to remain employed for a certain period of time before they are entitled to any vacation time. 

4.      Increase the vacation time depending on length of service.   

5.      If your policy allows paid leave to accrue, you must decide whether to pay out unused leave to departing employees.

Speak to people in your industry to find out what they do. As always, if you have questions about certain policies consult a small business attorney.

Posted by Shanu Singh Guliani on July 11, 2007 | Comments (0)