Vacation pay – use it or loose it

[vickyp]

#80224

Forum: Community

1. We have a use it or lose it vacation policy that only allows for 5 vacation days to carry over each year. The vacation carry-over must be used by no later than March 31 of the next year or it is forfeit, removed and will not be paid out. Are we legally allowed to do that in Saskatchewan?
2. Our hourly employees get 6 PDO\’s a year to use for appointments or when they are sick. Do you have any advise how we should track salaried employees that take time off for appointments or when they are off sick? At the moment it is just expected for them to make the time up. I guess I am cautious that this might get abused if not tracked.

[vickyp]

#90323

Here we go. From our payroll expert. Sorry to keep you waiting for so long.

No. an employee can forfeit the time, but not the pay, if vacation time is taken. Once earned, vacation pay can not be reduced other than by payment to the employee.
Time and attendance systems are often configured to entitle an employee to PDOs at the start of each year, and then track the usage as employees take time off. Some employers carry this forward to payroll where taking paid sick time reduces the regular hours on the pay stub, with the PDO hours showing on a separate line. As well, the pay statement might be configured to show the remaining PDO time available.

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