Understanding what you are entitled to receive with regards to your vacation pay is very important especially when it comes to leaving your place of employment. In that regard, laws vary greatly from state to state. For example, in Illinois under the Wage Payment and Collection Act, you have rights as an employee if you\u2019ve been provided with paid vacation. Generally speaking, you must be paid by your employer for any unused vacation days you have left at the end of your employment regardless of the conditions of your separation with the company. Whether you leave the company by quitting or by being terminated you may be entitled to be compensated with your vacation pay in your last check.<\/p>\n
Vacation pay may or may not be offered in your place of employment. If it is not, these conditions do not apply. However, once your employer decides to provide vacation pay it becomes earned wages under the Act that must be paid to you once you leave the company. If vacation pay is offered, it is usually accrued or earned by length of service for the company and earned pro rata as you render service to your employer. You may be able to hold your employer accountable to pay the monetary equivalent of your earned vacation if they have made an oral promise, included it in a handbook, memoranda or it has been established as a uniform pattern of practice.<\/p>\n
Also, an employer cannot have a (\u201cuse it or lose it\u201d) policy stating that if an employee quits or is terminated, they lose earned but unused vacation time. They can however, require an employee to take vacation by a certain date or lose the vacation, provided that the employee is given a reasonable opportunity to take the vacation. The employer should be able to prove that the employee had notice of the contract or policy provision. Additionally, an employer can invoke a waiting period during employment, where no vacation is earned. However, this must take place at the beginning of the employment and it must be for only a limited time period. Additionally, a waiting period cannot recur every year of employment and the employer must be able to show that the waiting period is not used as a means to avoid payment.<\/p>\n
Under the Illinois Wage Payment and Collection Act, employees earn a certain number of paid days off which can be used for any reason, including vacation and sick leave. Employers that offer this benefit need to maintain accurate records of the number of vacation days earned for each year and the dates on which such vacation days were taken and paid.<\/p>\n