Can an employer deny payment for unused vacation time after termination?
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Can an employer deny payment for unused vacation time after termination?
Asked on October 22, 2010 under Employment Labor Law, Connecticut
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The issue is whether there is a contract or employmeng agreement, a collective bargaining or union agreement, or a firm written or demonstrated policy in place (thereby effectively creating an agreement by behavior) which requires payment of the days upon termination.
As a general matter, there is no obligation to provide vacation at all. Since it is voluntary on the part of employers, they can set the terms and conditions for it. That means that whether it is paid out upon termination is up to the employer--there is no law requiring them to do this. So if the employer has agreed in some fashion--including by having a demonstrated policy in place which effectively created an agreement--then they have to pay it. But if the policy was to not pay or there's anything in writing saying they don't have to pay, then they don't.
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