Vacation/Holiday payout for Termination

[CBICindy]

What is the name of your state? Pennsylvania
When an employee terminates and has vacation and/or holiday hours remaining, is there any rule as to the actual termination date? Ex. Employee's last day of work is 9/26, but he has 40 hours of vacation and 16 hours of holiday. Do we have to show his termination date as 10/5 or can it be 9/26 with payout for the hours? We are not trying to deny payment, only trying to decide on the legal ramifications of the termination date being the last actual day worked.

 

[Beth3]

When an employee terminates and has vacation and/or holiday hours remaining, is there any rule as to the actual termination date? That's up to the employer. This is a matter of company policy/practice but absent any unique considerations, I have always considered the last day the employee actually worked to be the last day of employment. About the only time I can recall granting an employee's request to formally schedule vacation after their last day of work was when they were retiring and requested to take the three weeks of vacation to fill in the gap to their 65th birthday at which time they would qualify for Medicare and social security benefits.

There's no benefit to the employer that I can think of to allow an employee to schedule vacation and holidays following the last day the employee works. In fact, there's only downside to it.

 

[cbg]

BTW, in PA you are not required to pay out vacation time or holiday time at termination at all. (I don't know of any state that requires the payout of holiday time.) PA law leaves it up to the employer whether to pay vacation at term or not; it simply insists that you must follow your policy, whatever that policy is.