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Vacation Pay after being terminated Pennsylvania

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  • Vacation Pay after being terminated Pennsylvania

    One of our employees was terminated a month and a half ago. Just this week, he sent a letter stating that since he was a long time employee, he would like to get paid for his unused vacation time. The employee handbook states that we do not pay severance pay to terminated employees, whether they quit, are laid off or are fired for any reason. Upper level management isn't sure what to do since there is no mention in the employee handbook one way or the other pertaining to unused "vacation time" when an employee is terminated. As is the case in most places ... everyone is concerned with the "legal" ramifications. Any advice on whether or not he is entitled to pay for his unused vacation days would be appreciated. If there are legal issues concerning this, please point me in the right direction where I could find it and print it out for upper management, that would help too.

    Thanks!!

  • #2
    PA law does not require the payout of unused vacation at termination. It requires only that you follow your policy. If there is no policy saying that you will pay it out, you are not required to.

    If you would like to do so for him there is nothing legal stopping you from doing so, but be aware that you may be setting a precedent for the future.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Originally posted by cbg
      PA law does not require the payout of unused vacation at termination. It requires only that you follow your policy. If there is no policy saying that you will pay it out, you are not required to.

      If you would like to do so for him there is nothing legal stopping you from doing so, but be aware that you may be setting a precedent for the future.
      Can you point me in the direction for a reference to this. The people asking me these questions want the reference used to get the answers I give them cited.

      Thanks again for your help ... I think this site is fantastic!!!

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      • #4
        http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=61106&landiPNavCtr=|#1024

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        • #5
          Originally posted by CMorgan
          http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=61106&landiPNavCtr=|#1024

          Thank you!

          Comment

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