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Leave Pay Out upon Termination

fridaysofffridaysoff 8 Posts
in Compensation Vote Up0Vote Down
An employee who had just completed his 90 day probationary period and was vested with his paid time off was fired. Do we have to pay out the vested leave. Hired 5/12/04, vested 8/12/04, fired 8/25/04. Received 56 hrs PTO on 8/12/04, renewal would be 5/12/05.
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  • 3 Comments sorted by Votes Date Added
  • dynamite9551dynamite9551 113 Posts
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    what does "vested" mean in your company? i would think that vested means he is(was) eligible to use paid time off after 8/12/04. what does your company policy state. do employees receive the total value of their PTO upon vesting? OR do they earn on a monthly basis? I would expect he would be elgible for any "earned" PTO not what is available. for ex: 56 hrs. divied by 12 mos = 4.66 hrs. of PTO per month. therefore, i would calculate that EE is to be paid for 13.98 hrs. (i gave him credit for the 3 months he was on probation - and again i'm assuming Ee's cannot use until probation period over?? Again, what does your company policy state.
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  • fridaysofffridaysoff 8 Posts
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    Thanks for your help. I have had to step in this position with no training because the person who previously handled payroll, etc. unexpectedly left the company. The handbook does state that PTO begins accruing from date of hire, and that it accrues during the 3 mo. probationary period. I have paid the employee for his 14 hours (minus the 8 he had already used). Again, thanks for the help. It came just in the nick of time.
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  • AJ SPHRAJ SPHR 319 Posts
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    Look first at your state law to see what you're obligated to pay regarding vacation at time of termination (this varies by state!). Next look at your policy to determine what you should pay (assuming it complies with state law requirements.
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