Annual Vacation Leave Policy

Process Owner

Senior Executive of Corporate Human Resources

Purpose

To establish criteria for accrual and use of Annual Vacation Leave.

Policy

Regular, full-time employees are expected to rest and take at least two weeks vacation each year. This time off does not have to be accomplished at one time. Employees can take vacation in one-half hour increments.

Procedures

Cash Out

Employees can convert accrued vacation hours to cash at their current rate of pay, with company management approval. The following rules apply:

(1) Accrued Vacation hours may be exchanged for cash, only to the extent that the current employee year's accrual has exceeded (or will exceed) 80 hours.

(2) If the employee has sufficient vacation leave balance on the current official vacation record to cover the amount requested, the cash option may be approved even though the current year's accrual is not yet complete.

(3) Vacation leave balance on record will be reduced by the number of hour’s equivalent to the payment made. Exercise of the cash option must never be allowed to cause a negative balance in the record.

(4) The cash option may be exercised only once each calendar year.

(5) Payment will be on the normal pay cycle. Ten working days' notice is required for processing.

Accrued leave is carried over continually, up to a maximum of 200 hours. Leave accruing in excess of 200 hours is forfeited on a pay-period-by-pay-period basis. Hours forfeited are not recoverable.

Upon termination, an employee will be paid for unused accrued vacation, adjusted to day of separation, up to a maximum of 200 hours. If a negative balance exists, these hours will be reconciled against the final pay due (See Exceptions (a), below). Vice Presidents and above are not eligible for vacation payment outside of the states listed below. In case of a layoff, an employee will not be required to pay a negative balance.

Donating Vacation

Employees who wish to do so can donate accrued vacation leave to other GovC employees who have a pressing need for additional sick leave time. The need for additional leave is demonstrated by criteria similar to those that qualify an individual for leave under the Family and Medical Leave Act.

(1) Employees who wish to donate hours will have the number of hours they wish to donate converted to a dollar amount by multiplying the hours by the individual’s hourly rate.

(2) Employees in receipt of these hours will draw from the dollar amount at their own hourly rate.

(3) Donated hours NOT used by the receiving employee cannot be transferred back.

Requesting and Approving Vacation Leave

(1) Request. Employee verifies (from most recent pay stub) that leave accrued will cover leave requested.

(2) Approval. Supervisors are expected to administer the leave schedule so that work requirements are supported, leave is not approved inadvertently that will cause a negative balance, and that employees do not lose leave accruals because of an excessive balance of leave available.

Cash Out

(1) Request. The employee requests for the cash option for the current year.

(2) Approval. Local Human Resources will approve payment of the requested monetary option if all the established criteria are met. If approved, the following guidelines apply:

(a) Request is for not more than 80 hours.

(b) Employee's leave balance on the current official Vacation/Sick Absence printout shows at least as many hours as the employee is requesting in cash exchange.

(c) The employee has not previously received a cash exchange for vacation during the current employee year (except in the case of an employee whose accrual is approaching 200 hours and finds that work commitments prevent him or her from taking time away from the job).

Advance Vacation.

(1) Request. Employee completes Attachment 2, Advance Vacation Agreement.

(2) Approval. Approval commits company assets to cover an unearned benefit. Approval is not routine and should be reserved for unusual circumstances. Approval of the responsible senior manager is required. A signed copy of the Advance Vacation Agreement must be forwarded to the local Human Resources Department.

NOTE: A Vacation Advance does not increase the employee's available leave balance. It merely gives assent to allowing the employee's balance to become negative. The hours "advanced" are expected to be replaced through normal future accruals.

(3) Maximum allowable negative balance is -40 hours. Unapproved advanced vacation will be charged to LWOP.

Using Vacation Leave.

(1) Regular workdays only are counted as days of leave.

(2) Authorized paid holidays occurring during periods of Vacation Leave are to be recorded on Time Sheets as holidays, not against leave used.

(3) Employees are expected to return from vacation as scheduled. Telephone arrangements should be made if return will be unavoidably delayed.

(4) Vacation hours will not be counted towards overtime.

Exceptions.

Employees who have attained the level of Vice President or higher. Employees will continue to accrue vacation according to their Business Unit schedule. However, Vice Presidents are not entitled to vacation cash outs or vacation balance payments at termination of employment. *

Vacation benefit accruals may be accelerated only with the approval of the President of the respective company. Requests including sufficient rationale and approval must be documented in writing and maintained in the individual's personnel file with a copy sent to the Corporate HR Department for processing. Vacation accelerations should not exceed 4 weeks.

Inclement Weather/Natural Disasters. GovC facilities will always be open. Employees who decide not to come to work because of the weather or other conditions which make travel difficult, will have chosen to use a vacation day-or leave without pay-at their discretion. In this case, use of vacation time need not be approved in advance. Company officials may make arrangements for on-site employees to report to a GovC office, if appropriate. If this is not feasible, these employees will be required to use vacation time or leave without pay. Responsibilities

Local Human Resources: Ensure appropriate leave request are submitted promptly Corporate Human Resources: Resolve any discrepancies with leave balances or payouts Definitions

Employee year: The 12- month period beginning with the employee’s official employment date or anniversary thereof and ending on the next anniversary.

Calendar year: The 12-month period beginning with the first paycheck in January through the last paycheck in December.

Vacation/Sick Absence: A printout of individual balances by location is distributed by the Human Resources Department to office managers/coordinators at the time of each payroll. Vacation and Sick balances are printed on each pay stub. Contract requirements may alter the vacation benefit schedule. (See Policy 233.3)

Exceptions: Certain other employee groups may be added to this category at the discretion of the President.