• ABC Corporation’s policy is to continue accruing vacation when an employee uses paid vacation time, but not to continue to accrue during any unpaid time off. Accrued vacation pay is the amount of vacation time that an employee has earned as per a company's employee benefit policy, but which has not yet been used or paid. Under this policy when Joe uses a week of paid vacation to go to Hawaii, he does not accrue any vacation during that week. Similarly, if Suzy exhausts her vacation time and takes another week of family leave without pay to care for her mother, she too would not accrue vacation during that week. How Vacation Pay Affects Unemployment . An employee on legally protected leave must be treated at least as well as other employees in terms of vacation accrual during … If the leave is simply a personal leave granted by the employer, and therefore not legally protected, the employer is not required by law to continue vacation accrual during the leave. The employer’s policy controls, and the policy may provide that accrued but unused vacation is simply forfeited, or is payable only under certain conditions. Changes to redundancy rules during COVID-19 The law on claiming redundancy from your employer if you have been temporarily laid off, or temporarily put on short-time work has changed during the COVID-19 emergency period. Yes, subject to (a) the provisions of the employer’s current vacation time, paid time off (PTO), and other applicable policies, and (b) any state laws (e.g., implied contract of employment) restricting an employer’s ability to interpret or amend those policies. In some states, lump-sum payments for vacation time awarded at termination will not decrease benefits. For expert explanations of labor laws and Cal/OSHA regulations, not legal counsel for specific situations, call (800) 348-2262 or submit your question at www.hrcalifornia.com. Whether an employee accrues vacation while on a leave of absence will normally depend on two factors: • Whether the leave is legally protected (such as pregnancy disability leave, family leave, or a reasonable accommodation under the Americans with Disabilities Act) or simply a personal leave granted by the company but not required by law; and. However, some states allow all workers without a set date for resuming employment to obtain … You do not accrue annual leave during lay off but you are entitled to take annual leave that you accrued before being laid off. • XYZ Corporation’s policy accrues vacation based only on hours actually worked, so when employees take time off (whether paid or unpaid) they do not accrue any vacation time. Many employers also continue to provide benefits like health and life insurance for furloughed employees. You do not accrue annual leave during lay off but you are entitled to take annual leave that you accrued before being laid off. An employer does not have an inherent right to lay off the employee. Accrued time off is PTO an employee has earned but hasn’t redeemed yet, while PTO accrual is how an employee can earn that PTO. Holiday Accrual during Lay off As many employers we are entering a period of lay off for some staff and short time working for others. Ellen Savage joined the CalChamber in 1990 and currently serves as an HR adviser. An employer is not required to provide paid-time-off under California vacation law.But many companies choose to offer vacation time as a job benefit. If Suzy uses one week of her paid vacation during protected family leave to take care of her seriously ill mother, she also would not accrue vacation during that week. However, … Preview This premium content is for our members. Some companies are asking employees to take unpaid sick leave or use vacation days. Or Start a Free Trial Now for 15 days. 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