Each hire anniversary year an employee may roll forward unused Vacation into the next year’s earned Vacation up to a limit of thirty (25) days or the maximum available for their years of service level. The combination of rolled forward leave and new earned leave may not exceed the maximum regardless of years of service. In addition, the vacation rolled forward must be used during the year they were rolled into or those days will be forfeited at the end of that year. Understand each year’s unused vacation days will be rolled forward only one year. This is known as a “use it or lose it” rule and is the basis for encouraging employees to take paid time off.
For Example: Sue has her hire anniversary tomorrow. Today she has 20 banked days of vacation. Tomorrow she is eligibility to receive up to 25 more days, however she will only receive 5 days which will put her back at the maximum of twenty five days. In addition, since she rolled forward 20 days, she must use these 20 days during this year or any remaining portion of those 20 days will be forfeited. After a year goes by, it is determined she only used 15 days, so she will forfeit only 10 days to the “use it or lose it” rule. Since she is eligible to again receive up to 25 days, and already has 10 days rolled forward, she will only get 15 days which will again put her at the 25 day maximum.
Commentary (if any):
WARNING: Do NOT simply adopt a policy or add it to your handbook or manual without consulting with a qualified HR professional or employment lawyer. A sample policy may not be proper or even lawful in your particular situation. You’ve been warned.