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Tips and Answers to Your Questions
Human Resources
Can you suggest a good way to reduce financial liability
for carried over accrued leave without being unfair to employees of many
years?
There is the concern you have of not only being fair, but also being legal.
I do not know where you are located, but in the state of California, the earned
vacation of an employee is owned by the employee and you can't take it away
from them once the accrue the time. The option is either to pay them the time
out (usually only done upon termination) or let them take the vacation time.
If you find long-term employees that have a lot of time on the books that
do not take vacation, you have to take steps to limit your liability.
The best way of doing this is to create a cap of x number of days that an
employee can have on the books at any point in time. When the employee reached
that cap, they simply stop accruing vacation until they get under the cap.
Think of it as a bathtub that only holds so much water. You stop adding any
more until you drain some out. This is how a vacation cap works.
Also, do not forget that you want employees to take vacation in a timely manner.
It is not only owed them, but you really want staff to take time off. Employees
that take vacation and paid time off are employees who have a balanced life
and are less likely to burn out. Think of it as an investment in the health
and wellness of your organization's most important resource- the staff.
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