vacationleave

Vacation leave, also known as annual leave or paid time off (PTO), is a period during which an employee is authorized to be away from work while continuing to receive regular pay. It is intended for rest, travel, or personal matters. Vacation leave is distinct from sick leave, which is for illness or medical appointments.

Entitlement and accrual vary by employer and jurisdiction. Most employers provide a yearly allotment of vacation leave, which may accrue over time, either at a fixed rate per pay period or as a front-loaded amount at the start of the year. Entitlements often depend on tenure, job level, or full-time versus part-time status, and local laws may set minimums. Unused days may carry over up to a specified limit or be forfeited, and some plans pay out unused vacation on separation from employment.

Scheduling and policy considerations govern how vacation is requested and approved. Employees typically request time off in advance, and employers may require approval, specify blackout periods, or limit the number of concurrent absences. Leave balances are tracked for payroll and compliance purposes, and policies may require using accrued vacation within a certain timeframe after it is earned.

Legal framework and regional differences influence vacation leave norms. In many countries, statutory annual leave guarantees a minimum number of paid days. In the United States, there is no federal mandate for paid vacation; provision is voluntary and varies by employer. Other regions, such as the European Union, have directives mandating paid annual leave with country-specific implementations.

Administration and payment: upon resignation or termination, accrued vacation is often paid out per contract and local law. Employers may implement carryover caps and use-it-or-lose-it rules, influencing how employees manage their balances.