Consider the Size of Your Company
When considering the sample vacation policy for small businesses presented here, the business owner must think about the size of his company. There are no laws that state you have to pay out any unused or accrued vacation time if someone leaves the company, nor do you have to let vacation time accrue.
As a small business owner it’s often challenging to introduce company benefits that you can afford as far as costs to the company. Choosing a base vacation policy that does offer paid time off such as this, albeit limited, allows for the small business owner to consider other employee benefits such as health, dental, and retirement plans.
Any paid vacation benefit will be welcomed, but don’t try and compete with large corporations where vacation, sick, and personal days are allowed to accrue and are paid out upon request or taken in large chunks—you may not have enough employees to cover your customer’s needs. If you employ this policy, make sure to include the verbiage in your employee handbook so employees understand how it works and when they are eligible to take vacation pay.
It’s also a good idea to place the policy in writing in case you ever need to document your policy during an audit, employee lawsuit, or some sort of appeal by the employee. Having a written policy the employee signs off on will ensure state and federal agencies will defer to that written policy.
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