The first thing to do is to explain the various words used when talking about "vacation". In the U.S.the word is clear to all Americans. It is the time that employees take off from work for relaxation. In most other countries "vacation" is called "annual leave".
The UK uses the word “holidays” to mean "vacation". But using the word “holidays” can be very confusing. It has nothing to do with “public holidays”. “Public holidays” or “national holidays” refer to a country’s day(s) off to celebrate significant historical or national events. In dealing with the UK you need to be very clear what people (including you) mean when using the word "holidays".
Let’s look at some of the legal requirements for “annual leave” in various countries. Note, that these days are the bare minimum. In order to be competitive in a specific country, a company also needs to keep market data in mind when forming its policy.
Country |
Legal Requirements |
China |
Seniority based. Must pay during the year of entitlement otherwise the company must pay 3 times the amount of pay for the unused days. 1-10 YOS = 15 days 10-19 YOS = 25 days 20+ YOS = 35 days <1 YOS = ratably reduced |
Switzerland |
Same number of days for all employees --- no seniority schedule. Federal law requires a minimum of 4 weeks of annual leave. If an employee is under age 20, then the minimum is 5 weeks. The majority of employers provide 10 additional days or a total of 6 weeks to all employees. There is no pay in lieu of annual leave days taken. Days can be carried forward into the next year. The maximum date for claiming unused annual leave for any one year is 5 years. This requires a lot of recordkeeping. |
UK |
The law combines both "holidays" and public holidays. The minimum is 20 days "holidays" and 8-10 days for public holidays. The total is 28-30. In England the total is 28 days; in Scotland it is 29 days; and in Ireland it is 30 days. At termination, employees can claim payment for the remainder of both unused "holidays" and public holiday days. There is no separation of the two for payout at termination. During employment there is no pay in lieu of days taken. "Holidays" may be carried forward into the next year but public holidays may not be. |
Brazil
|
After being employed for 1 year, employees are entitled to 30 days, 10 of which may be taken in cash. As an "annual leave allowance", employees get 1/3 of their monthly salary at the time of annual leave. An employer has up to 1 year to grant an employee annual leave. If the employer exceeds 1 year, the company must pay the employee double. Annual leave granted is 30 days and normally is taken all at one time. However, it may be split once into 2 shorter periods of time. It cannot be split more than once and no annual leave period can be shorter than 10 days. |
Argentina |
Employees must be employed for 6 months before being eligible for annual leave. 6 mos. – 5 YOS = 14 days 5-10 YOS = 21 days 10-20 YOS = 28 days 20+ YOS = 35 days Annual leave period is January 1 through December 31. Employees should take annual leave between October and April, however, employers may grant annual leaves at different times of the year based on the pace of the company’s business. Up to 1/3 annual leave may be carried forward. During annual leave employees have a right to receive an "annual leave bonus”. The calculation: Divide the monthly salary by 25 and multiply that number by the annual leave days taken. |
U.S. |
No federal/legal requirement for minimum vacation. The number of days is left up to each company and usually set based upon competitive data. Most companies award vacation days on a seniority based schedule. Employers usually set a maximum limit on the number of days that can be “on the books” at any one time. There are 16 states that require accrued but unused vacation to be paid out at termination (California, Colorado, District of Columbia, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nebraska, New York, North Carolina, North Dakota, Rhode Island, and Wyoming). In reality, it is common practice to pay out unused vacation in all states. |
Again, as a reminder, the information stated above is the legal or minimum requirement for each country. While companies obviously need to be legally compliant, it is also important to understand competitive practice. Competitive practice indicates that most companies award more days for "annual leave" than the minimum, legal requirement.
Important Note: This posting is intended to provide a brief overview of vacation rules around the world. Please check with your local, in-country law firm to ensure this information is up-to-date with the latest legal requirements.
Jacque Vilet, President of Vilet International, has over 20 years’ experience in Global Human Resources with major multinationals such as Intel, National Semiconductor and Seagate Technology. She has managed both local/ in-country national and expatriate programs and has been an expat twice during her career. Her true love is working with local national issues. Jacque has the following certifications: CCP, GPHR, HCS and SWP as well as a B.S. and M.S in Psychology and an MBA. She belongs to SHRM, Human Capital Institute and World at Work. Jacque has also been a speaker in the U.S., Asia and Europe, and is a regular contributor to various HR and talent management publications. She lives in Dallas and has 2 four-legged children and one Chinese daughter and granddaughter (sort of).
Image courtesy: kateysoutlook.blogspot.com
Jacque,did Maryland make this mandatory? I haven't read anything recently, but I thought based on 2008 legislation that if a company had a clearly communicated policy it did not have to pay out accrued but unused leave. I'm a little panicked that I missed something, since I'm with a Maryland employer. Have I been sharing incorrect guidance? can't find anything on the web more recent than 2008
Posted by: Anne Thomas | 10/19/2012 at 08:50 AM
Hi Anne --- sorry for the delay. Yes you are correct. I am having trouble finding the specific ruling on that to see when it changed. Here is the info you need:
§ 3-505. Payment on termination of employment; accrued leave
(a) In general. -- Except as provided in subsection (b) of this section, each employer shall pay an employee or the authorized representative of an employee all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not been terminated.
(b) Payment of accrued leave. -- An employer is not required to pay accrued leave to an employee if:
(1) the employer has a written policy that limits the compensation of accrued leave to employees;
(2) the employer notified the employee of the employer's leave benefits in accordance with § 3-504(a)(1) of this subtitle; and
(3) the employee is not entitled to payment for accrued leave at termination under the terms of the employer's written policy.
HISTORY: An. Code 1957, art. 100, § 94; 1991, ch. 8, § 2; 2008, ch. 220.
Posted by: Jacque Vilet | 10/19/2012 at 01:56 PM